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LIMA Sponsored Harvard/Yale Statistical Study Released
To gain an edge in the highly competitive retail marketplace, manufacturers paid $5.952 billion in licensing royalties in the United States in 2005 (up 1.8 percent from 2004), according to a study commissioned by the International Licensing Industry Merchandisers’ Association (LIMA). The announcement was made on Opening Day of LICENSING 2006 International, the industry’s major trade event, as LIMA released the findings of its eighth annual study, conducted by researchers at the Yale School of Management and the Harvard Business School.
For the first time in the history of the survey all categories of licensing showed year-on-year growth. Here are the highlights:
- The industry overall saw a gain in royalty payments of 1.8 percent from the previous year.
- Entertainment/Character licensing continues to be the dominant category in the industry, accounting for 44 percent of the share of market. Trademarks/Brands was second with an 18 percent share, and the fashion and sports categories tied for third with 14 percent each.
- Once again in 2005, Home Décor and Housewares were a growth area in the Products category, with a 15 percent combined growth rate.
- Royalty revenue growth was as follows:
- Entertainment/Characters – Increase of $61 million to $2.62 billion (+2.4. %)
- Trademarks/Brands – Up $5 million to $1.08 billion (+0.5%)
- Music – Increase of $6 million to $128 million (+4.9%)
- Art – Increase of $5 million to $175 million (+2.9%)
- Non-Profit – Up $2 million to $43 million (+4.8%)
“The overall increases in all licensing categories is a first in the history of this survey and is great news for the industry,” stated Charles Riotto, president of LIMA. “The across-the-board growth is indicative of a trend we’re seeing in the management of licenses as a sustainable, strategic revenue stream for various businesses. The industry is still dominated by the entertainment category, but we’re seeing fewer companies go for the quick hit and more long range management plans for brands or franchises which helps foster greater stability for the industry.“
The survey methodology relies on direct responses from licensors and licensing agents as to their actual royalty income received in 2005. This marks the eighth year that LIMA has sponsored a statistical study of the licensing industry to provide reliable fact-based data to help licensing professionals spot trends and growth opportunities as they plan for the future.
Total royalty income was as follows:
ESTIMATED LICENSING REVENUES BY PROPERTY TYPE (2005)
Estimated Licensing Revenue (in million dollars)
|
| Categorie |
|
2004 (Mio US $) |
|
2005 (Mio US $) |
|
Change |
| Art |
|
170 |
|
175 |
|
+ 2,9 % |
Characters
(Entertainment/ TV/ Movie) |
|
2.565 |
|
2.626 |
|
+ 2,4 % |
| Collegiate |
|
201 |
|
203 |
|
+ 1,0 % |
| Fashion |
|
814 |
|
822 |
|
+ 1,0 % |
| Music |
|
122 |
|
128 |
|
+ 4,9 % |
Non-Profit
(Museums, Charitable organizations) |
|
41 |
|
43 |
|
+ 4,8 % |
Sports
(Leagues, Individuals) |
|
795 |
|
810 |
|
+ 1,9 % |
| Trademarks/Brands |
|
1.081 |
|
1.086 |
|
+ 0,5 % |
| Publishing |
|
41 |
|
41 |
|
+ 0,0 % |
| Others |
|
15 |
|
18 |
|
+ 16,7 % |
| |
|
|
|
|
|
|
| Total |
|
5.845 |
|
5.952 |
|
+ 1,8 % | |
