Licensing still a bit behind when it comes to multimedia

Kazachok - October 2011
by Marie Richez (Kazachok), exclusive for BRANDORA

 
Multimedia is a promising market that hasn’t attracted many licensing properties as of yet. There still are plenty of opportunities to establish licensing in these new game markets.

 

With digital technology evolving daily, it’s quite a challenge to try to list the games that exist in the new multimedia. However, one thing is for sure: very few licenses have jumped on the wagon. That can be partly explained by how gigantic this new environment appears, as well as the fact that it often seems hostile, or uncertain to say the least. "Digital tablets appeared 2 years ago", recalled Anuman’s marketing manager Eric Nguyen. "With more than 100,000 applications, iPad is currently leading the way. We experienced a real digital revolution in less than a decade. In the beginning of the second millennium, we used to sell computer games by mail to the most involved players. Now, what with the growth of new multimedia tools and the downloading possibilities, games are attracting more and more kinds of people". Up to date Anuman has developed 350 apps since 2008, with only about 60 associated with a licensing property. In terms of targets, the apps go from small children from 3 y.o. on to senior citizens. "We can ascertain that most games are perfectly co-ed", Eric Nguyen further added.

New stakes
In view of this novel digital environment, licensing is in turn seeing its rules turned upside down. "Duplicating an image isn’t sufficient to develop a digital game", Ouat’s marketing manager, Sébastien Doumic, reminded us. "You have to recreate a whole new environment. Furthermore all licensing don’t have international following, so the question is: is the necessary investment involved in Internet development worthwhile?".
As a comparison, the biggest hits in video games aren’t associated with a licensing property. "Licensing is a double - edged choice", continued Sébastien Doumic. "A property attracts all the property’s fans, but you alienate part of the players who might like the game. They won’t try it because they don’t like the licensing property or because they think it might tarnish the way the people around them see them. This example is even stronger when you apply it to social networks such as Facebook. We developed Totally Spies! for Facebook. Few men dare post on their wall that they enjoy playing with Spies … although lots of them really enjoy the games!"
The other stake is about controlling the multiplicity of digital tools. Classic game consoles are decreasing but they still represent a real market. Although Apple is leading one segment, the other challengers (Androïd, Archos, etc.) haven’t said their last word. Thus, a property that is considering this virtual environment must either choose or plan developments for most tools.

A model yet to be invented
With few properties present in multimedia, every day is bringing new announcements: Dofus (Ankama) will soon be on iPhone; Gameloft is enlarging its mobile offering with Harry Potter; World of Warcraft (Blizzard) is said to be on the verge of signing a deal with AppStore; same story with Nintendo (Pokemon). Moulinsart has already signed a deal with Dujardin for a Mille Bornes board game after comic book hero Tintin, is said to also be getting into digital applications via the AppStore. Furthermore, TFou has just changed turned its programs over to that format. Along the same lines, MTV and all the Nickelodeon programs - first and foremost SpongeBob and Dora the Explorer - are following similar recipes. "Multiplying media tools and duplicating existing models doesn’t boost the market very much", explained Laurent Taieb, VP Nickelodeon Consumer Products South. "As far as we are concerned, we always thrive to offer kids and parents more creativity. Furthermore, we feel that we must be present on all fronts because our target uses these tools".

 

For as much, is this race for more innovation profitable to the rights owner or the licensee? "These new models are costly to develop beforehand, as well as after hand since the contents must constantly be enriched," didn’t hesitate to ascertain Patricia de Wilde, Senior VP Consumer Products at Marathon Media. "Thus new economic models must be invented, and probably very finely tuned depending on the type of property". While Mrs. De Wilde is very happy with the success of Where’s Wally? that sold over 1 Million items worldwide, she also feels that it is important to take the venture on step further.

Totally Spies! generated a new deal with Ouat and La Redoute that represents a definitely novel economic model for Marathon Media that expects excellent returns from it. By getting involved in social gaming, the Million + French players that have subscribed to Totally Spies! Fashion Agents will team up with the 700,000 Facebook fans of La Redoute, which represent as many potential buyers interested in the secret agents’ wardrobes. Fashion brands such as Morgan, Guess, Esprit or Ray Ban have decided to try the adventure. The target is clearly identified: young women 18 to 34 y.o. It seems that the challenge has already been met and that these examples should quickly prompt numerous other developments that will all be very precisely tuned. They should offer licensing professionals a number of ideas and opportunities to benefit from these hot new growth engines.

Marie Richez for Kazachok