Making Money From Your IP – Lessons in Children’s Entertainment

Tim CollinsDC Thomson & Co.2 September 2010

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Me

•Copyright Promotions – Licensing Agency•Universal Studios – Film•HIT Entertainment – Children’s TV•DreamWorks – Film•Endemol – TV formats/reality•DC Thomson – Publishing

It’s all about brand development

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Why exploit your IP?

•Entertain and educate

•Making money - recoup investment - but a long tail!

•Protect your IP from others

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Children

•Pre-school

•Primary boys and girls

•Tweens

•Teens?

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Boys: their changing mediaworld

• Television▫ 2.7 sets at home▫ TV in bedroom▫ Satellite cable at home

• Books– 11.7 books since xmas

• Cinema– 2.4 films since xmas– 3 of top 10 family films

• Radio– Listen in bedroom

• Magazines/Comics– 1.8 per month– Self & parental purchase– 3 out top 10 licenses– Beano market leader

• Video Games– 1.3 hrs per day– On own, in bedroom

• Computers– Family computer

1999

• Television▫ 3.0 sets at home▫ Satellite cable in bedroom▫ TV interactive services▫ Weekday hours down, weekend up▫ Cartoon Network out rates CBBC▫ TV on demand (28%)

• Books– 12.3 books since xmas– Film TV characters

• Cinema– Increased visits– 5 of top 10 family films

• Magazines/Comics– 1.8 per month– Parental purchase– 7 out top 10 licenses– Dr Who market leader (Beano #3)

• Mobiles– 42% ownership– Texting, games camera– Acquisition age 8/9

• Video Games– 2.0 hr per day– Wii, PS2, DS dominating– Bedroom, Lounge, Online, on the move– With friends, brother, parents

• Computers– own laptop, broadband wifi

2009

• Online▫ At home, in bedroom (13.5%)▫ 2.57 hours per week▫ Youtube▫ Homework, games, kids sites, downloading▫ TV Channel/programme sites

Source: YTGI 1999, 2009All data based on minimum 25% penetration

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Girls: their changing mediaworld

• Television▫ 2.7 sets at home▫ TV in bedroom▫ Satellite cable at home

• Books– 13.7 books since xmas

• Cinema– 2.5 films since xmas– 3 of top 10 family films

• Radio– Listen in bedroom

• Magazines/Comics– 1.8 per month– Self & parental purchase– 3 out top 10 licenses– Girl Talk market leader

• Video Games– 0.9 hrs per day– On own, siblings, friends

• Computers– Family computer

1999

• Television▫ 2.9 sets at home▫ Satellite cable in bedroom▫ TV interactive services▫ Viewing hours down▫ CBBC and Nickleodeon▫ TV on demand (27%)

• Books– 14.1 books since xmas– Film TV characters, authors

• Cinema– Increased visits– 5 of top 10 family films

• Magazines/Comics– 1.8 per month– Parental purchase– 7 out top 10 licenses– Girl Talk market leader (Bratz #2)

• Mobiles– 47% ownership– Texting, camera– Acquisition age 7/8/9

• Video Games– 1.0 hr per day– DS dominating– Bedroom, Lounge, Online, on the move– With friends, brother, parents

• Computers– own laptop, broadband wifi

2009

• Online▫ At home, in bedroom (13.7%)▫ 2.61 hours per week▫ Disney, MSN▫ Homework, games, kids sites, ▫ TV Channel/programme sites

Source: YTGI 1999, 2009All data based on minimum 25% penetration

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Business model - exploitation

•Is the IP strong enough and/or relevant ?

•Legal protection

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The launch platform

•The original idea & medium - Film, TV, Book, video game, ringtone character, ad campaign…

•How strong is it?

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The next stage…• Wider exposure…Film, TV, on-line

▫ Investment can be substantial TV animation $250k/half hour 26 episodes Movies – $50-100m

• Invest directly or license others, but can loose share of copyright and control

• Rights related to value of the original IP and investment required by 3rd party – upside with those taking the risk

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•Once platform has been established…

•Exploitation phase – merchandise, publishing, DVD, music i.e. Consumer Products

•You or a third party…?

•Probably 90% of new TV projects don’t recoup

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The licensing model…

•As IP owner – focus on brand and the content vision

•Work with specialist licensees – hire experienced staff or use an agent

•Deals carry an advance and MG – usually•Control & approve products and

marketing by third parties•Retail is everything

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Brand development

•Have a plan – it will evolve as will the brand

•Refresh and listen to consumers and retail customers

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• 1997-8 only 13 shows sold to CBBC• Pre-selling to key partners from summer 1998• TV launch April 1999 – video and small

publishing program• Second series Sept 1999, more video and books• Small range of merchandise Nov 1999• 2000 on - more TV, DVD specials, consumer

products, live show, international expansion…• 2001/2 – Brand 90% of all CP and video revenue –

2/3 of total company turnover• 2009 – Bob is 10!

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•Britain’s #1 comic brand – multi-generational appeal – sub brands & characters

•Kids and adult branded products•Media

▫Weekly comic – 45k copies weekly▫#1 Annual – 300k each Xmas▫TV – 3 series (BBC)▫Consumer Products – 25 years▫Live show▫Digital – Web and digital archive

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•2011 is their 75th anniversary.•DCT has a strategy to develop the Broons

▫Media platform ▫Consumer products & publishing▫Promotional tie-ins▫Direct to consumer

•Long-term strategy – UK and overseas