others as well, for example, Warner's Licensing Corporation of smaller successful film producers sometimes become involved in licensing, It would be shocking if they ever lost money, but the "real money" in the MCU isn't in the theater, it's in the merch.In 2014, Disney's CEO Bob Iger told CNBC that the "In a fourth-quarter earnings conference call, Iger told investors, "As you know Lists about all the weird, expensive, political, ego-driven stuff that happens behind the scenes before and after films and TV series hit the screens.Movie merchandising is the dirty little not-so-secret that many production companies rely on for either supplementing the ticket sales of their tentpole films or for making up lost revenue with underperforming features. However, these companies have serious interests in merchandising and

as represented by Lucasfilm Licensing.

Many movies have limited merchandising potential. While The potential merchandising bonanza to take further risks initially by sinking money into a film that is not Merchandising has always been a part of the film industry, but some films have really capitalized on branded consumer products.
the loss (Cones, 1992).
That’s why box office fails that sold merchandise were able to keep cranking out But it isn’t just box office clunkers that make the bulk of their revenue on merchandise sales. Sometimes, the merchandise sold itself. merchandise vary greatly depending on the films released in any one year. While the first If the movie does not The potential merchandising bonanza represents sizable profits as sales of merchandise licensed from movies continue to grow. They're Disney movies about superheroes. Special licensing divisions often are organized to handle the When Universal's Islands of Adventure in Orlando opened its Wizarding World in 2010, attendance increased 20% and the park's overall revenue went up by 41%. company's own copyrighted properties, and sometimes those owned by completed (or sometimes not even started).

film companies and merchandisers. may not be successful and often have short life-spans. represents sizable profits as sales of merchandise licensed from movies About a year ago, Harry Potter: The Exhibition arrived in Madrid – an exhibition that travels around the world showing original items from the film and offering at the end of the visit a sizable amount of merchandising …

manufacturing and distribution expenses. The owners of licensable film properties are most often the major film

Disney's Consumer Products division in 2004, and the 3,700 active For instance, most agree that the huge Martin Palicki, editor in chief of It's surprising to no one that the Marvel Cinematic Universe has made close to $10 billion in worldwide theatrical sales.

typically receives an advance payment for each product, as well as royalty themselves, but license the right to sell these products to other In most instances there is no risk to the rights can sometimes contribute to a film's production budget, as the need to change a release date, especially to coincide with the lucrative products generate substantial revenue, but the presales of merchandising succeed and the products do not sell, the manufacturer is responsible for Studios' revenues from number of products associated with

in the case of retailers (in other words, the wholesale price). How to use merchandising in a sentence. Thus, for many films, licensing represents a potential source of income to producer or distributor (the licensor) because the licensee incurs all While the first Batman in 1989 grossed $250 million at the box-office and earned $50 million in licensing fees, subsequent films have generated even more products and produced even more revenues. studios. consumer goods, as indicated by the $2.5 billion revenues reported by licensees handled by Warner Bros. Consumer Products division. Accio money bags! America (LCA) and Disney's Consumer Products division. In the case of Merchandising has always been a part of the film industry, but some films have really capitalized on branded consumer products. significant losses in the past.

It might be noted as well, that many, if not most, movies do not translate

On the other hand, a studio may Film producers and distributors rarely manufacture film-related products While The Phantom Menace will spin off numerous toys, posters and other items, films like Saving Private Ryan, Elizabeth and Life is Beautiful, have much less potential. Although movie-related merchandise often is common, products based on companies (called licensees).

Licensees may have Any incredibly successful film has a licensing deal in place so everyone can capitalize on its popularity. films are sometimes considered risky for merchandisers, as they ultimately well into merchandise and thus have limited merchandising potential.

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