Brand Name Properties Here to Stay
By, ZackRoth
June 13, 2009Tags: Brand Name Properties, Licensing fees
At this point it’s pretty evident that the Studios are focusing primarily on culturally known properties — sequels, old films, TV shows, video games — basically anything that already has a built in audience. It kind of sucks, cause original ideas are becoming less and less frequent, but I understand the plight of the studio being strangled by their money losing conglomerate parent companies. After all, marketing any film will cost the studio up to three times the production budget, so they better be certain they have a hit on their hands.
Also affecting the studio’s decision making to focus on brand name properties are licensing fees. A variety article that covered the Licensing Intl. Expo in Las Vegas noted that just last year the studios saw a $191 billion dollar intake from licensing fees.
Karen McTier, exec VP of domestic licensing and worldwide marketing for Warner Bros had this to say about the current state of affairs in Hollywood: ”What is new is what is old…what retailers want is proven successes. In this environment they can’t take any chances.”
Studios cannot afford to make original ideas in this economy if it means that the $191 billion in licensing fees will take a hit.