Disney’s Tron generated massive hype and hoopla throughout 2010 with the studio even predicting at Licensing Expo 2010 that Tron would become one of its core properties, alongside Mickey and Cars. But it seems that prediction may have been a bit premature after Tron’s disappointing box office return since its Dec 17th release.
With very few exceptions, there’s a direct correlation between box office performance and licensing toy sales. “If the movie bombs, the consumer is not generally going to run out and buy toys,” says movie consultant Travis Rutherford. The key exceptions are entertainment properties with an already established brand presence, such as Speed Racer and Scooby Doo, and cult films, such as Nightmare Before Xmas which actually gained product exposure beyond the film window.
There are three tactics toy companies attached to licensing deals can do if their movie receives bad buzz or bombs:
• Lower expectations;
• Refocus toys away from movie;
• Stay the course.
What’s Success Anyway?
Success is often in the eye of the beholder (and shareholder), yet determining whether a toy line is financially viable is frequently a debatable topic. The level of success varies based on size of the toy company — Spin Master is going to have different expectations than Evergreen Toys — as well as how much has been invested in the product lineup. In general, it’s best to err on the side of caution with reasonable, yet low expectations of total sales metrics. It’s important to exhibit confidence to motivate retailers, but it’s equally as important not to set extremely high — and possibly — undeliverable standards.
Another opportunity has toy companies distancing themselves from the entertainment property. This often finds toy makers re-editing TV spots to showcase the toy’s features instead of showing clips or scenes from the movie. However, this tactic requires delicate navigation and diplomatic skills since the entertainment partner must typically approve every TV spot made by the toy maker. Nevertheless, it’s often in the entertainment company’s best interest to help the toy line succeed since they also receive licensing royalties.
There are always exceptions to the rule and in some cases toys can survive poorly performing movies. (The reverse is also true. Shrek and The Incredibles do well at the box office, yet have not necessarily performed well in the toy aisles.)
For toy makers, it’s important to continue to move forward with marketing and promotional plans. However, this strategy is also dependent on the compliance of retailers. Many retailers quickly remove, demote, or replace toy lines once a movie fails to gain traction with theatergoers.
Even though critics decried Tron the movie, there’s been almost universal acceptance of Tron toy offerings. The innovative technology and cool features — Spin Master’s Tron Legacy Impulse Projection Figure has a 3D face that enables the action figure to display remarkably lifelike features — likely enable the toy line to sell well based on play patterns and word-of-mouth. Innovative toys will likely always find an audience regardless of the tie-in movie’s performance. [Toys/Entertainment/Licensing]
Contacts and Connections: Cinedigm Entertainment Group, Jill Newhouse Calcaterra, CMO, 21051 Warner Center Ln., #250, Woodland Hills, CA 91367; 818-587-5424, x313; jcalcaterra@roadrunner.com; www.cinedigm.com
Disney, Jessica Dunne, EVP Global Licensing, 500 S. Buena Vista St., Burbank, CA 91521; 818-544-0015; jessica.dunne@disney.com; www.disney.com
Rutherford James Group, Travis Rutherford, CEO, 4219 Van Nuys Blvd., Sherman Oaks, CA 91403; 818-501-3186; travis@travisjamesllc.com; www.rutherfordjames.com
Spin Master, Matthew Wexler, Executive Producer, 450 Front St., West, Toronto, ON, Canada, M5V 1B6, 416-364-6002; www.spinmaster.com.
© Copyright 2011, EPM Communications, Inc. May not be reproduced without written consent of publisher.