OPINION

Movies And Merchandise: A Match Made In Hell

Written by Richard Marcus
Published July 10, 2006

There's a disturbing trend that's taking over the entertainment business, specifically film and television, which is having a direct effect on how movies and television shows are chosen for production. With production costs escalating out of control and box office returns ever diminishing, the question of how much money a movie will recoup through retail licensing fees is becoming an important factor in the process of deciding what does and does not get produced.

The industry has a long history of retail spin-offs dating back to the early days of Walt Disney and Mickey Mouse when in 1933 the mouse's image started to appear on Lionel trains and Ingersoll-Waterbury watches and clocks. This reciprocal deal gave Disney the money to fund his empire and it probably saved the other two companies' butts during the depression.

As the years have passed it's become a common enough sight to see plastic figurines and other mementos of children's movies showing up as part of fast food meals or on the shelves of stores. Some movies or television shows have even been blatant attempts to advertise a toy or a game, instead of the other way round.

In recent years we've seen the trend spreading to adult movies as well. The biggest and best example has to be the Lord Of The Rings trilogy where New Line Cinema licensed expensive reproductions of items from the film. Ranging from brooches costing $70 to statuettes at around $6,500, over $1.5 billion in sales have been generated since the movies were released.

In an article in Globe and Mail David Imhoff, New Line's vice president of worldwide licensing and marketing, is quoted as saying that twenty years ago when he first started, there was no adult market, but now everything they do has an adult component. From reproductions of Jason's goalie mask, lifelike Freddy Kreuger masks, to replicas of the fleur-de-lis cross key used in the film The Da Vinci Code (steel, platinum, and gold, for only $4,599), the film fanatic can purchase almost anything he wants, if he has the money, from his favourite movie.

While a studio only gets a small percentage (between five and ten percent) of the amount earned by these sales, when total sales of retail spin-offs amounts to $50 billion dollars as it did last year, that ends up being a good chunk of change — in fact, such a good chunk of change that studios are now taking this factor into consideration when they make decisions about projects.

page 1 | 2 | 3 | 4
Copy02-11-Richard portrait-72-4x4.jpgRichard Marcus is a long-haired Canadian iconoclast who writes reviews and opines on the world as he sees it at Leap In The Dark and Epic India Magazine.
Keep reading for information and comments on this article, and add some feedback of your own!
Movies And Merchandise: A Match Made In Hell
Published: July 10, 2006
Type: Opinion
Section: Video
Filed Under: Video: News, Video: Film and TV Business, Culture: Business and Economics, Culture: Advertising and Marketing
Writer: Richard Marcus
Richard Marcus's BC Writer page
Richard Marcus's personal site
Spread the Word
Like this article?
Email this
Submit to del.icio.us Save to del.icio.us
RSS Feeds
All RSS Feeds (240+)
Comments on this article
BC articles by Richard Marcus
Video: News
Video: Film and TV Business
Culture: Business and Economics
Culture: Advertising and Marketing
All Video Articles
Richard Marcus's personal weblog
All Opinion articles
All BC articles
All BC Comments

Comments

#1 — July 10, 2006 @ 13:19PM — Deano [URL]

Uhmmm....I kinda liked The Mummy and The Mummy II. Pardon me while I crawl away in abject shame...

#2 — July 10, 2006 @ 13:48PM — Nancy

Aside from that I resent being the targeting of merchandising at all, it's truly criminal that most of the merchandising is targeted directly at those least able to defend themselves against it, namely kids. No one should be allowed to market anything anywhere any time for any reason to kids. In addition to which, most of the stuff marketed is, frankly, crap: cheaply, poorly made trash. I admit I made my share of mistakes early on with SWARS. It took only a few tacky, trashy character dolls to wise me up to the fact that I was getting ripped off royally.

Having groused that, I agree, Hollywood needs to re-examine their modus operandi as far as business ops cost controls go. Fewer & fewer people can be bothered to go to the theatres any more. Like myself, "enjoying" the movie with 200 or so strangers is not an enticement for me to go anywhere, and getting to watch something on a great big screen is also not a draw.

#3 — July 10, 2006 @ 19:32PM — Baronius

Good article. I'd be interested in your take on video game tie-ins. Huge money.

Want comments emailed to you? No spam, promise! Address:

Add your comment, speak your mind

(Or ping: http://blogcritics.org/mt/tb/50189)

Personal attacks are not allowed. Please read our comment policy.





Remember Name/URL?

Please preview your comment!

Fresh
Articles
Fresh
Comments