If Corpse Bride becomes a cult hit like Tim Burton’s A Nightmare Before Christmas then the licensing deals could be huge. © Warner Bros.

All-animated films typically have more merchandising potential than live-action films, of course, given the wider range of artwork and the younger target market, among other factors. DreamWorks’ SharkTale, set for release later this year, has a full roster of licensees in all categories and promotional partners including Burger King, Coca-Cola, General Mills, Great Clips, Hewlett-Packard and Krispy Kreme. SharkTale represents the donut chain’s first film tie-in.

Other animated films being pitched at the show included Tim Burton’s The Corpse Bride, a stop-motion-animated feature from Warner Bros.; DreamWorks’ clay-animated Wallace & Gromit movie; Sony’s 3D-animated Open Season, the first in a series of planned animated family films from the studio; and Disney’s Cars (from Pixar) and Chicken Little (from Disney Feature Animation). Traditionally animated films were few and far between, but examples included Pooh’s Heffalump Movie from Disney, which will introduce a new character into the Hundred Acre Wood, and Universal’s Curious George, based on the classic book character.

DVDs Drive Licensing
DVDs, especially direct-to-video and direct-to-DVD productions, have, over the last few years, become an increasingly important driver of new licensing programs and a main method of extending existing properties. This trend was in evidence at the show. HIT Ent., for example, is releasing new DVD productions for nearly all of its properties, including Bob the Builder, Angelina the Ballerina and Rubadubbers. Promotions and some products, such as book titles, support each release. DIC’s Trollz will be introduced in the U.S. with a Website and its entertainment support will come in the form of a direct-to-video production rather than TV. (The property will air on television in other territories.)

Hasbro is one of many toy companies — others include Mattel with Barbie and MGA with Bratz — to create direct-to-video or DVD titles to extend its brands beyond playthings into entertainment. Hasbro announced a worldwide distribution deal at the show with Paramount Home Entertainment for all of the toy company’s direct-to-video titles, tied to brands including GI Joe, Transformers, Tonka, Duel Masters, Secret Central, Weebles and Candy Land.

Classic Media is using DVD collections to rejuvenate and extend many of its franchises, which range from Rocky and Bullwinkle to Casper. (Classic also owns Big Idea’s VeggieTales, itself a successful direct-to-video franchise.) It is introducing several holiday-themed DVDs featuring its Rankin-Bass properties including Peter Cottontail, Santa ClausiIs Coming to Town (which saw licensed merchandise at Walgreen’s last year and will expand into broader distribution this year) and The Little Drummer Boy.

The Pink Panther brings a retro flavor to popular products. © Paramount.

Retro Rules
Retro properties in general continue to permeate the licensing show, as they have for the last several years. Animated examples include King Features’ Mr. Bill, available for promotional tie-ins, MGM’s Pink Panther, which is turning 40 this year, and Evergreen Concepts’ Alvin & the Chipmunks. SloaneVision Unlimited is launching a licensing effort for the Slinky toy, which turns 60 next year. It will be supported by an animated film produced by H2V Entertainment in conjunction with DoubleTake Spring Partners and POOF-Slinky, the toy maker that owns rights to the property. The film will introduce new Slinky characters.

Overall, this year’s licensing show was well-attended and energetic. This is good news for the licensing business, which has endured several years of flat or declining sales. Last year, The Licensing Letter estimates retail sales of entertainment/character merchandise, which includes animation-related products, fell 4% to $13.6 billion. Perhaps the high traffic and serious interest reported at the show by exhibitors of animation properties is a sign that the licensing business is coming out of its doldrums.

Karen Raugust is a Minneapolis-based freelance business writer specializing in animation, publishing, licensing and art. She is the author of The Licensing Business Handbook (EPM Communications).