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How Cartoons Became a Global Phenomenon for the Family ANIMATION INSIGHT 2020

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How Cartoons Became a Global Phenomenon for the Family ANIMATION INSIGHT 2020 MARCH 2020 Animation insight 2020 How cartoons became a global phenomenon for the family ANIMATION INSIGHT 2020 I don’t think you turn on the TV or turn on a device and say to your child, ‘I’m not interested. See you later, I’m going to go do the house work.’ There is an opportunity now to have a shared experience and create a closer bond with your child, and that starts with content.” RIKESH DESAI, director, licensing, BBC Studios 2 M ARCH 2020 WWW.LICENSEGLOBAL.COM ANIMATION INSIGHT 2020 How Cartoons Became a Global Phenomenon for the Whole Family T HE ANIMATION CATEGORY transcends just favorite animated content from a variety of about every demographic imaginable. From devices. This widespread availability makes it Japanese anime to preschool shows and situa- easier than ever to catch up on new franchises tional comedies, animation is made for every- and provides a gateway to establish the next one these days. Disney makes hits for “children great brand. of all ages,” and Fox runs a block of animated This report will highlight how changes in comedies every week. The diversity of the con- the way consumers think about animation and tent’s fans and supporters speaks to the vast how they digest it are creating new opportuni- scope of the vertical’s licensed merchandise ties in licensing. opportunities. Not to mention, a renaissance of As content becomes ubiquitous and older quality content is available like never before. fans begin to experience classic franchises Now, in 2020, the wide scope of animation with their families, animation licensing has is evolving even further as consumer viewing become a sector that can hit just about any habits transition to streaming. Companies like consumer product vertical (as long as it’s Netflix are continuing to push for new ani- brand right). Hear from leaders in the space mated content, and Disney+ has brought the such as executives from BBC Studios, Toei and House of Mouse’s beloved franchises to Cartoon Network Enterprises in this overview streaming. Viewers can also now watch their of animation licensing. WWW.LICENSEGLOBAL.COM M ARCH 2020 3 ANIMATION INSIGHT 2020 Animation Trends 44% 15.3% 11% Entertainment and The market share Netflix spent 11% characters (including for digital animation at of its budget on animation) accounted the global box office original animation ; for 44% of global reached 15.3% in 2019. content in 2018. retail sales of licensed merchandise in 2018. he Hollywood Los Angeles Times 70% 24% 30% The top grossing Average weekly reach Increase of overseas ; Kidscreen; Morning Consult and T animated moves of of BBC iPlayer and anime content and all time are produced CBBC watchers merchandise from by Disney. ages 0-15 years. 2017 to 2018. 37.5% The New York Times Entertainment and characters – which includes animation – made up 37.5 percent of global retail sales of licensed merchandise in the U.S. in 2018. 8.8% Entertainment and characters – which includes animation – made up 8.8 percent of global retail sales of licensed merchandise in Japan in 2018. 7.8% Entertainment and characters – which includes animation – made up 7.8 percent of global retail sales of licensed merchandise in the U.K. in 2018. 010203040 10 million active Roughly 60% of An estimated 27% 59% of adults users each month Netflix’s global of children watched say Pixar content was audience watches the a “major reason” they stream anime via streaming content on National Tracking Poll and Nielsen Scarborough Study. Crunchyroll. service’s content for more than one platform signed up for Disney+. children and families at the same time. BBC Annual Report; The Association of Japanese Animations; DigiDay; SOURCES: Licensing International’s Annual Global Licensing Industry Survey 2019 Report; Nash Information Services; on a monthly basis. Reporter 4 M ARCH 2020 WWW.LICENSEGLOBAL.COM ANIMATION INSIGHT 2020 “The Simpsons” A CASE STUDY FOX’S “THE SIMPSONS” redefined how we as “Underachiever and proud of it, think of the TV family. From non-tradi- man,” “Eat my shorts” and “I’m tional character dynamics to the fact that Bart Simpson, who the hell the cartoon characters never age, the razor- are you?” emblazoned on sharp writing and emotional depth of “The its t-shirts. Based on the Simpsons” has led it to become the longest- grownup appeal of the running primetime scripted series in televi- series, Fox was able to sion history. develop licensing deals for Based on a series of shorts from “The consumer products that tar- Tracey Ullman Show,” the Matt Groening geted the adult demographic – a original series debuted in 1990, and was one first for animated TV. Licensees of the first hits for the then up-and-coming originally approached “The Simpsons” Fox network. The studio behind the show as they had with other animated shows quickly capitalized on that success by devel- with a focus on the kids’ market. As the oping a licensing program for the series. series evolved, licensees saw the value Some of the first “Simpsons” licensed in recognizing the show’s appeal to a consumer products were from Changes, wider demographic, particularly with with catchphrases from Bart Simpson such adult males. WWW.LICENSEGLOBAL.COM M ARCH 2020 5 ANIMATION INSIGHT 2020 “Rick and Morty” A CASE STUDY THERE ARE SEVERAL mainstream anima- “‘Rick and Morty’ incorporates themes such tion properties that have a loyal adult fan fol- as family, relationships and overcoming chal- lowing, and their licensing deals are becom- lenges that resonate across all demographics,” ing less childlike and more curated. says Pete Yoder, vice president, Cartoon A great example of this trend can be found Network Enterprises, North America. “The in some of the work Cartoon Network En- show tackles these themes head-on, with terprises is doing. The TV network has sev- humor incorporated.” eral apparel collaborations for its adult ani- For CNE, the brand’s unique appeal and mation hit “Rick and Morty.” Partnerships strong brand affinity highlight why it’s impor- for the series include an exclusive apparel tant to have partners who understand the collection at global retailer Primark with series. Yoder believes it is key to find partners sock brand Stance for a line of “Rick and who can leverage the brand and advocate its Morty”-inspired styles, and Primitive Skate value through merchandise. for apparel, skateboards and accessories. “We look for partners who understand the “Rick and Morty,” with its brand and are able to develop product that eccentric characters and delivers the unique comedy of ‘Rick and mature humor, has uni- Morty,’” says Yoder. “In many instances, our versal appeal, which is partners are huge fans of the show, so they reflected in its con- are able to translate it into product that reso- sumer product line. nates with our core audience.” 6 M ARCH 2020 WWW.LICENSEGLOBAL.COM ANIMATION INSIGHT 2020 Animation TOP Brands in 5 Licensing Animation represents one of the largest verticals in licensing. From Gucci collabs with Mickey Mouse to Timberland Boots inspired by “Spongebob SquarePants,” animation brands have found success in licensing because of the brand affinity they provide that transcends generations. License Global recently ranked the Top 150 Global Licensors, and five of the Top Ten licensors have popular animation brands in their portfolio. Here are the top companies based on their 2018 licensed merchandise retail sales. RANK BRAND The Walt Disney Company 1 Properties include Mickey Mouse, “Toy Stoy” and “Frozen.” WarnerMedia 2 Properties include Scooby-Doo, “The Jetsons” and “The Flintstones.” H asbro 3 Properties include “My Little Pony,” “Peppa Pig” and “G.I. Joe.” Universal Brand Development 4 Properties include “Trolls,” “Minions” and “The Secret Life of Pets.” 5 Viacom Nickelodeon Consumer Products Properties include “Spongebob SquarePants,” “Rugrats” and “Dora The Explorer.” WWW.LICENSEGLOBAL.COM M ARCH 2020 7 ANIMATION INSIGHT 2020 If you look at the impact of mobile devices on our lives and in particular on families and children, it’s clear that the evolution of digital is really changing the whole landscape of our industry. The way people now watch and enjoy content has shifted, and we take that into account when approaching and planning our strategy.” SANDRA VAUTHIER-CELLIER, chief commercial officer, Acamar Films 8 M ARCH 2020 WWW.LICENSEGLOBAL.COM ANIMATION INSIGHT 2020 Ten Mins With... Sandra Vauthier-Cellier, Acamar Films Acamar Films was founded with a dedicated focus to provide a global preschool audience with an honest take on life as a toddler through animation, as it has done with its animated series “Bing.” In conversation with License Global, Sandra Vauthier-Cellier, chief commercial officer, Acamar Films, shares how the U.K. studio is building an organic audience and investing in a generation of Bingsters through new initiatives. License Global: What do you look are getting in Italy is also phenomenal and a for in a licensing partner? proof of concept following our U.K. success. Vauthier-Cellier: We look for a partner We are a passionate team who are driven to who shares the same values and puts our positively impact preschoolers’ lives. audience first. We want partners who can What trends do you see emerg- listen, work collaboratively, be honest and ing in the licensing market as a be very supportive. There’s always an edu- whole? cational stage with our partners as we have If you look at the impact of mobile devices to learn from them as much as they have on our lives and in particular on families and to learn from us. We like to challenge, in a children, it’s clear that the evolution of digital good way, to get the best quality, the best is really changing the whole landscape of our product and added value.
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