Monday, April 25, 2005

Creating media franchises

Before investing in the next media franchise creation, you should consider how its licensing opportunities will fare. If the property does not demonstrate its attractiveness against a checklist of potential license suitors, then you should reevaluate whether to invest. Well-run franchises have multiple and diverse income streams that extend their brands into several complimentary markets, enriching the consumer experience. This allows franchise owners to maximize revenues while the property is still hot and of interest to the market. Sometimes properties become so well known that they can perpetuate their value indefinitely, such as Disney's Mickey Mouse and Sanio's Hello Kitty.

The checklist of potential license extensions include:

1) film/tv/video (live-action or animation)
2) video games
3) books/magazines
4) comics/graphic novels
5) action figures and other toys
6) trading cards
7) apparel
8) promotions and tie-ins
9) snacks
10) tchotchkes

Most successful franchises can license their creations to at least four of the above outlets. George Lucas can say he licenses Star Wars to all of them and more.