Of all the products with movie tie-ins, which one should retailers bet on to provide shelf space and promote? Good question. But they should bet on the kid movies because that merchandise moves -- and it's no longer just toys and t-shirts. For example, the movie Cars 2 will offers toy cars front and center, but also include other tie-ins such as shampoo, food, tissues, and guitars. A hot movie generates a generous extra revenue stream for all concerned. According to trade publication Licensing Letter, the average royalty rate for all products licensed from entertainment properties in 2010 was 9.4% -- a couple percentage points for a Disney release, more than a couple points less for a more obscure property.
How much does that generate? According to a Wall Street Journal article, the top six franchises in 2010 were: Mickey Mouse ($9 billion), Winnie the Pooh ($5.7 billion), Disney Princessess ($4.4 billion), Toy Story ($2.8 billion), Barbie ($2.7 billion), and Cars ($2.5 billion). Bet on the kids...because a lot of them are also over 18.
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