Video Age International OCTOBER 2008

Despite the sorry state of the economy, business was booming at the 28th annual Licensing International Expo, a three-day conference for merchandising rights holders that was held in early June at New York’s hard-to-get-to Jacob Javits Convention Center. Regardless, Advanstar Global Licensing Group, which organizes the show on behalf of the International Licensing Industry Merchandisers’ Association (LIMA), is planning to move the Expo to the Mandalay Bay Resort in Las Vegas for its 2009 edition, citing the desire to “expand in new directions.” VideoAgespoke with a slew of attendees to discern this year’s sweeping licensing trends and to find out whether the organization will be able to weather the move to Sin City. “The biggest trend I’ve noticed this year is that companies are trying to refresh classic characters,” said Doug Schwalbe of New York-based Classic Media, an Entertainment Rights company. Classic Media came to the Expo this year to celebrate the 60th anniversary of Casper the Friendly Ghost , as well as the 15th birthday of Veggietales . “It’s a big issue for everyone involved in character licensing. We’re doing that with Casper , of course. We have the new CG [computer-generated] Casper’s Scare School and at the same time, we’re re-launching classic Casper with a completely separate style guide. He’s living on as a hip, Halloweenthemed retro property.” While trends like this were easy to spot, less easy to finger was whether or not the falling dollar had a major effect on attendees. “It’s got to be weighing on people’s minds,” said Schwalbe. “But prices for things that people want will still be driven by competition — not the dollar.” According to Steven Ekstract, group publisher for License! Global Magazine , the declining dollar only meant that more foreigners came to the show. “Europeans, especially, have a lot of spending power now,” said Ekstract, mentioning that BBC Worldwide and Hit Entertainment were just a couple of the many Europe-based firms that exhibited at the Expo. “Europeans love coming to New York to shop, anyway,” he said with a laugh. “This event [gave] them the perfect excuse to come here.” The downward spiraling economy and the costly Javits Convention Center may have kept some would-be exhibitors at bay, but the companies that did come were there to do business. Iceland’s LazyTown Entertainment inked deals with licensing agents in Benelux, Israel and Eastern Europe for series LazyTown Extra. Brand Licensing Israel Ltd. will handle a merchandising program in Israel and Palestine. Jetix Licensing is charged with Eastern Europe and Licensee Connection will handle Benelux. In a statement, LazyTown’s Katie Foster, director of Brand and Licensing, Europe, said she was overjoyed with the appointments. “We have watched LazyTown grow rapidly… over the past six months since the inception of the European office, and these appointments are sure to help make LazyTown the biggest brand across Europe. Eastern Europe, Israel and Benelux are very important markets for us. We look forward to a strong and fruitful partnership with each of these three companies.” Burbank, California-headquartered DIC Entertainment, which recently merged with Canada’s Cookie Jar, was appointed global licensing agent for the relaunch of classic girls brand, “Penny Brite,” by Charisma Brands, LLC, an Irvine, California-based manufacturer of collectible dolls. The company intends to create two merchandising programs for the relaunch, including a classic retro line targeting young girls and collectors, featuring apparel, music, gifts and more. Plans are also in motion for a home entertainment program that will be supported by a major licensing initiative across such categories as toys, health and beauty and back-to-school. “Penny Britehas a chic, retro fashion feel that blends seamlessly with a wholesome lifestyle, appealing to girls of all ages and collectors,” said Kirk Bloomgarden, evp, Worldwide Consumer Products and Marketing, Cookie Jar. Bloomgarden also touched on the idea that one of this year’s biggest Licensing Show trends was refreshing classic characters. “The new Penny Brite is strongly positioned once again to develop a new fan base among young girls around the world and to become the next hit evergreen brand.” Another company hoping it had hit upon the next big thing at the Expo was New York-based Out of the Blue Enterprises. At the Show, Out of the Blue co-founder Angela C. Santomero announced the first merchandising deals for the firm’s flagship series, Super WHY!, which already airs in a raft of territories, including the U.S., U.K., South Africa, South Korea, Hong Kong and Singapore, among other places. The licensing program, like the show, will combine lovable characters with literacy education. Among the partners are Learning Curve Brands, Inc., which will introduce an extensive line of plush toys, figures, vehicles, playsets and electronic reading aids; Grosset & Dunlap, a division of Penguin Young Readers Group, which will feature the show’s characters in a series of hardcover picture books, storybooks, readers and activity books; and PBS Home Video, which will release a series of Super WHY! DVDs to be distributed through Paramount Home Entertainment. “Our goal was to provide parents with a television program they could feel good about and children with a show they think is fun — even while being educational,” said Santomero. “All the new products have the same enriching learning-focused qualities that the series provides and will help broaden the learning and fun far beyond the TV.” Like Out of the Blue, BBCWorldwide came to Licensing Show to talk about merchandising plans for its newest hit property. Charlie and Lola, a cartoon with a unique “collage” animation look and a British sensibility, which has managed to find success in the U.S. Kids Preferred will introduce a range of plush dolls and doll cases and distribute a series-themed paperback book series. “We are excited to make available to Charlie and Lolafans all across the U.S. this new range of one-of-a-kind toys and books that will inspire them to use their imaginations to go on their own adventures — just like Charlie and Lola,” said Anna Hewitt, head of International Licensing for BBC Worldwide. While Mark Northwood, vice president, Licensing, the Americas for Toronto-based children’s production company Nelvana Enterprises, wasn’t touting any newly revitalized evergreen properties, he did find success promoting Nelvana’s animated fare. “We’ve seen really good licensee response for our shows,” he said, noting that Ruby Gloom, Bakugan and Grossologywere among the most popular series at the Expo. The abundance of Europeans at the event meant that “for us, as far as the international side of things went, Nelvana was very successful at Licensing Show,” he said. And while some folks were wary of next year’s big move to Las Vegas, Northwood wasn’t fazed. “People are always apprehensive about any kind of change,” he said. “But people will come together as an industry and make things work. And if not, they can always bring it back to New York.” David Luner, svp, Interactive and Consumer Products for FremantleMedia Enterprises in North America, echoed his statement. “We’ll be there, but I’m skeptical,” he said, noting that Licensing 2008 was especially successful for his firm this year due to a raft of recognizable brands, including American Idol , Family Feudand The Price is Right . “It’s tough to change when it’s not broken.” Luner feels that moving the Expo 3,000 miles further away from FremantleMedia’s European office cannot be a plus, but said he’s willing to give it a chance. More than 25,000 people from 82 countries were on hand to see and be seen at the Javits Center. It remains to be seen how many will make the trip out to Las Vegas next year. LHR V I D E O • A G E OC T O B E R 2 0 0 8 28 L i c e n s i n g B i z B u z z Economy Cools Expo. Will Vegas Move Heat it Up? Angela Santomero and Samantha Freeman, co-creators and co-founders of Super WHY! and Out of the Blue Andrew Forrest and Rachel Lane of FremantleMedia at their Licensing stand

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