Professionals in the licensing industry highlight the difficulty in making any forecasts about the evolution of sales during 2021. Sales will be defined by the development of the pandemic and how it will affect consumption and the activity of companies and retailers.
Covid-19 changed consumers’ entertainment habits
The current generation of consumers are increasingly accustomed to consuming the content they want when they want to, and nowadays on the platform of their choice. With the pandemic, the consumption of content on streaming and digital platforms has increased. And even audiovisual companies, of which the majority is present in the licensing industry, are launching their new films directly on VOD platforms. The current situation still does not allow many people in the theatres and some of them cannot even open their doors. In this context, the different streaming platforms available today are expected to grow even more in 2021.
Digital content becomes the cradle of licensed properties
If we analyse the main properties presented by IP owners and agents for 2021, we can detect a certain shift in the preferences of the current consumer towards digital content. Even though TV, cinema, and now streaming platforms as well, still have a lot of importance in the market, we can see how properties born in a digital context are growing. For example, among the properties presented by licensing professionals, the Spanish market displayed a growth of those which originated on YouTube or in videogames in 2021.
Performance of licensed toys in Spain 2020
The delays of film premieres in the cinema industry and the subsequent changes in the licensing programmes have mostly affected certain toy categories such as action figures, which are closely linked to licensing. Although sales in the licensed toy market went down by 5.7% in 2020, this downfall was minor compared to the overall Spanish toy market (-7%). Overall, the representation of licensed toys grew in the toy market last year. According to NPD Group data, the market share of licensed toys was 23.8% in 2020 and grew by 0.4% compared to 2019. The main properties for the toy market in 2020 were Star Wars: The Mandalorian, Super Mario, Harry Potter, Back to the Future and Scooby-Doo.
About the author:
Emili Alsina is the editorial director of Licencias Actualidad. The licensing B2B trade magazine has been providing a detailed insight into the Spanish licensing market since 1962. The online and print publication, which appears quarterly, reports on news, trends and developments.