The actual value of the brand licensing business in the amusement and gaming industry is not a readily-available statistic, but few would contest that it runs into the hundreds of millions of dollars. And licensing brands generally across the world in all commercial spheres runs into the billions...
THE business of paying someone a royalty to use their intellectual property on another product goes back a long way. The creators of Superman, for example, sold full ownership rights to their character for only $130 in the 1930s. Today, if you have the rights to Angry Birds or Muppets – two of the top 10 brands available for licence in 2012 – then it is a licence to print money.
The amusement industry in particular – although gaming machines and especially casino slots, have a long track record – has been a happy hunting ground for brand managers for many years.
Video games, then kiddie rides, redemption games and pinball, all figure highly in the users of familiar characters, themes or movies, in the development of their products. Big names in the licensing business, such as Hit Entertainment, Turner Broadcasting and E1 (Entertainment One) are the most familiar players in the fun business, whether it is branding theme parks, rides, coin-op games or gambling machines.
The slots world’s biggest player is Wheel of Fortune, a TV quiz themed game which is still taking big bucks after 10 years with a host of derivatives from the original. Deal or No Deal has appeared as a hard gambling machine and also as a fun game; it has the dexterity to be configurable to the casino floor, the amusement arcade and even as a ticket-dispensing redemption game considered innocent enough to appear in Middle East family entertainment centres.
The business is big bucks. But why? Simply because a popular name, familiar theme or much-loved character from a favourite movie or TV series makes connections with the players, whether they are two years old or grandparents. The attraction is enough of a draw to get folk to play a game where they might otherwise pass by.
To get Hello Kitty, Thomas the Tank Engine, Fireman Sam or whoever, will cost you; but the acquisition could double or even quadruple the income of your machine or your park. Sit a mouse in a kiddie ride and kids might want to play it; sit Mickey Mouse and the odds on them wanting to play it are multiplied. It is all down to that connection between the player and the device. It is a well-recognised fact and leads to companies paying substantial sums for the right to use the brand or the character.
Read the full article in the June issue of InterGame
