PLAYDIGM Entertainment Licensing & Branding

How much are the rights to the TERMINATOR brand worth?

Derek Anderson and Victor Kubicek acquired the sci-fi franchise in 2007 for approximately  $25 million and produced  ‘Terminator Salvation’.  They are   looking to sell their brand rights as the  companies they own are fighting off bankruptcy and not cyborgs.

Anderson and Kubicek’s Halcyon Holding Group retained FTI Capital Advisors and have requested court approval to “evaluate strategic alternatives.”

The Original Terminator was released in 1984.  Production company Hemdale Film Corporation owned 50%  and creator James Cameron sold his 50% to his producing partner and future wife Gale Anne Hurd for $1.  They have since divorced.

In 1990, Carolco Pictures, owned by producers Mario Kassar and Andrew Vajna, bought Hemdale’s position for $10 million then promptly released ‘Terminator 2: Judgment Day’.  However In 1997, Carolco went bankrupt, but the partners started C2 Pictures which purchased their old firm’s stake for $8 million and paid around $8 million for the remaining 50% from Hurd.

In 2007,  novice producers Anderson and Kubicek purchased the Terminator rights.  Anderson claims that the Terminator rights are now worth more than $60 million – twice what he and his partner bought it for. The box office and DVD sales seem to prove that ‘Terminator: Salvation’  is worth more than expected and should even generate more sequels.  Predicting future revenue for any entertainment project is hard to do but this franchise is on solid ground as long as the next story plot is compelling and draws the fans.

How many more times will such a powerful brand change hands, no one knows.  My guesstimate is that the Terminator Trademark and brand will be a viable entertainment asset for generations to come and will hold its value.

I look forward to the next installment, as do millions of audience members and fans.  Be prepared for the Rise and War Of The Machines

The Licensing Merchandising Association (LIMA) conducted their annual International Licensing Survey and announced from Las Vegas June 3, 2009 that Brand owners received  $5.7 billion in licensing royalty revenue in 2008, a reduction of 5.6 percent less than collected the previous year,

This decline was in eight of nine categories of licenses tracked. The one exception – royalties collected by schools and affiliated organizations jumped 3.5 percent to $208 million.

Of course this could be connected to the economic recession but will this trend continue?  I believe a good solid brand or young upcoming viable project like District 9 or some yet to be launched brand that the public will get behind should have no problem generating income. The key will be diversification into as many markets as possible without thining the subject material so that the consumer is not strained or perceives the brand owners are just milking the franchise/core business.  I’ve explained this before in a previous post, that you don’t want to allow your brand or characters from your brand onto products that don’t fit in with the kind of brand you have created or put them onto poor quality products. This will reflect badly.

In 2008, the largest sement of licensing royalty revenues were generated from the Character sector within the entire entertainment industry, accounting for 46 %, while major segments like Corporate Trademarks & Brands held onto 17 %, Fashion at 14 % and Sports only came in at 1 percent of the entire industry.

The Survey seems to indicate that retail distribution for licensed merchandise may be changing. Brand owners are exploring retail opportunities beyond regular channels. Mass merchandisers still remain important but some brand owners report they are seeking relationships with smaller, independent retailers, viewed as better able to quickly respond to market trends, changes and seem willing to take new, untested properties and products.

So how do you get your brand and associated products into these markets earning multiple royalty streams? Keep returning to read future posts and you will find out.

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FROM THE MIND TO THE MARKE – Pre-Order this ebook by sending an email to info@Playdigm.com (put title of book in the subject line).  This ebook is expected to be available in late 2009 or early 2010.  Reserve an issue with no money down.

(c) Sandford Tuey All Rights Reserved.

Just curious to see what you, the brand creators or publishers and distributors of new and global brands would like me to write about.

Leave a comment or send your questions or suggestions to info@Playdigm.com

If I don’t have the answer, I will seek out the information through my many professional connections.  I look forward to your input!

Sandford

General Motors plans to reduce its number of brands from eight to five. This will see the Hummer at the top of the ‘goodbye’ list because consumers aren’t thirsty for a gas guzzler. Sales for Hummer are down 76% in March 2009 compared with the same month last year.  I wish they would turn this vehicle into an electric car version as this is one brand I would like to own myself, but only if it does not use gasoline.

I owned a Pontiac Firebird in the 1980′s, loved the car just as much as the ladies did. However, the Pontiac auto line is one of General Motors’ worst performers these days and will likely be phased out.  Saturn sales are down almost 60% in March compared with a year earlier.  I wonder if this means the famous Trans Am will be disappearing as well?

G M is trying to sell off Saab but it is not clear whether a buyer will be found or if a buyer will continue to make Saabs for U.S. consumers.

When hurricane Katrina roared through the Six Flags theme park back in 2005, the company states it does not have the funds to repair it. The park is still closed and they are trying to get out of their property lease.  I love theme parks and have enjoyed Magic Mountain Six Flags California many times and to see one park that I have never visited disappear, is a sad day indeed.

Pioneer has decided to not produce any new televisions. This means there will be no more new Pioneer TVs on the market by this time next year (they made great plasma big screens). Another major brand disappearing.

The Twin Cities newspaper is only one of a dozen major North American papers that have either filed for Chapter 11 bankruptcy protection or have closed their doors entirely. Given the current state of the print advertising market we should expect to see even more proof that print is dead.

Kraft Foods announced back in February it would terminate its Handi-Snacks pudding and its Kool-Aid gelatin line. Many companies in these economic hard times are reassessing their products and making decisions with the financial bottom line determining what stays on the shelf or not.

It is common practice to eliminate underperforming brands but isn’t always the best decision to terminate them entirely.  Why you ask?   Because what might be over-saturated in the market place today, could become a huge hit and best seller five or ten years from now.

Every five years there are a new group of five year olds looking for something that their older siblings and parents do not desire or that they want something else just to be different.  Kids will latch onto a brand that the older ones will think childish or out of touch, until it becomes so popular it can not be ignored and then becomes a cultural icon.

I remember when everyone wanted to have long hair and now the teens want short hair or unique styles.  It all comes down to cycles.  One day in the future long hair will be popular again.  Time will prove me right.

Which brands will survive the world wide recession?  Which brands will disappear?  My recommendation is to keep your brand alive, even if it means only releasing limited collectors editions or small runs of products bearing your brand, because one day, it will catch the interest of a new audience and consumers will enjoy it again.  Never let someone else tell you your brand is dead because next year it could be the sleeper hit.

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Well, I am back from my holiday and the long weekend was a blur of BBQ’s, family and friends.  Which is after all, what life is supposed to be all about.  Hope you all enjoyed your break as we all get back on track.

Those that know me, know that I am a work-aholic.  In my mind, what I do does not seem to be work.  It is something I would do, even if I did not make money doing it.  Mind you, it is great to be paid for it.

So if you love to do something – do it.  Some people say that it is only a hobby until you make money from your efforts.  I don’t agree with that.  If you write a script, you are a screenwriter (although I think a person should have finished one before telling anyone they are).  When you have a screenplay of yours produced – then you become a produced screenwriter.

Look at it this way:  If you allocate time to write a screenplay or develop your acting skills or what ever it is you do, think of this as investment time.  You are building your project step-by-step.  You’ve taken the time to write out your goal and break it down into small tasks so you can achieve that goal.  As you accomplish each step, you will soon reach the goal and most likely, make more goals.

You only have one life and you are in control of it, so do what you love and the money will follow.  If your project does not earn revenue, you are still doing something you enjoy.  There is nothing wrong with that.

I personally know of screenwriters who wrote constantly with their dream in mind but no sales happened until after they completed ten scripts.  Thats a lot of practice/training and time before earning a financial reward for all that work.  I also know of projects that failed in the novel or comic stage, only to be resurrected in another medium to become successful.

So if your screenplay does not sell right away, expand it into a novel or comic and try to market it into different industries. Diversifying your brand is one key ingredient in your project pie and is as important as persistence.

Check out other posts on this site to learn how to develop your brand, even if that brand is you or something you create.  Don’t let anyone tell you can’t do something, because if you put your mind to it, you will one day achieve it or meet someone who will help you get to the next level.

Wishing you the best with your endeavours…

Sandford

GALACTIC GLADIATORS is a Sci-Fi action adventure where environmental – animal rights activist Tessa Guess must lead a coalition of abducted, mutating, humans and aliens in a war against the Chaons or our galaxy will be destroyed.

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I originally created the Galactic Gladiators concept in a screenplay but the first draft was quite different from the epic story it is today.  To help followers of this blog understand the intricacies and effort needed to develop a brand, I decided to use this intellectual property as an example, since I am so close to the property I have insight that I can relay to readers that they normally would not be able to know.  As things develop, I will issue posts sub-titled:  Galactic Gladiators Brand. They will cover my progress on  designing and developing a new brand.

In the Beginning:

Initially, I wanted to give my personal opinions on manipulating DNA,  altering the genetic structures of our foods, animals and soon – us – humans.  I wrapped all this in an anti-war story set in our sector of the universe where a galactic war between the Psions and the Chaons has been ravaging for millions of years.

Original Concept:

The first draft of the screenplay detailed that a confederation of planets decided conflicts not by war but by gladiatorial combat on a War Planet tactically created for this sole purpose.  I had to decide differences between intergalactic species, representatives from their empires and worlds, who would be sent to the conflict zone on this war planet.  These Galactic Gladiators fought it out to the death and the survivors became heroes for the winning species, who now won the spoils as victors.

This was a brutal form of negotiation between planets, yet resolved hostilities with minimal loss of life to the populations of the disputing parties. Compared to a full out war that could kill hundreds of billions of lives, this combat resolution was deemed a more civilized form of warfare.  Only those selected to fignt for their planet’s position on issues would be sacrificed.

Early Changes to the Concept:

Well, this was an intense, violent, action based story and with input from my friends and interested business relationships who had an interest in the success of my entertainment projects, thought this concept was not epic enough.

So I rewrote the screenplay and made some major additions and changes to take it to the next level.  Keep posted to see how this happened and where this brand is heading.

I will get into the next stages that this brand went through to become the comic series it is today and how I intend to expand it into the film, television, video game and mass merchandising markets.

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Order my ebook – FROM THE MIND TO THE MARKET – now. It will be available later in 2009. Preorder by contacting Info@Playdigm.com.

(c) Sandford Tuey All Rights Reserved.

My entry into the entertainment industry was through the back entrance – merchandising.  In 1985, I created, financed and published ‘The Original Bruce Lee Martial Arts Game’ and marketed it into 75 countries.  Not bad for a guy who never owned his own corporation before and was running the business out of his basement.

The instant recognition and credibility awarded me due to my legally licensing and endorsement by Mrs. Lee and the Bruce Lee estate, helped with penetrating the international toy industry.  After years of expanding the product line and exhibiting at trade shows, I realized that the big money was in owning the brands that were licensed to be on product boxes and not the products within the boxes themselves.

After many years of licensing big name celebrities and organizations and placing them onto my products, I inverted my company from a manufacturer of toy products to a creator of brands.  It was the smartest thing I could have done.  Wish I would have done it years earlier.

Summer Redstone (who owns Paramount) once said in an interview: “We are paying the talent (actors) too much. Because it is not the talent that makes the movie, it is the script. The play’s the thing, as someone once said. And if you have a great script, the talent rushes to appear in it and not at too heavy a price.”

Even though the talent (actors and directors), once attached to a project, help producers obtain the financing from studios, investors and banking institutions, none of this would need to happen without a good story.

That is why I started writing screenplays, at first on the side in my spare time and now on a regular basis. All of my screenplays have been spec scripts (speculative) and not on assignment.  Unless you allow for the fact that I assigned myself to develop certain concepts over other story ideas that I came up with.  Choosing only the best-of-the-best to write.

People follow characters who are placed in situations where the plot and/or antagonists hinder the lead protagonist in achieving their goals.  Spiderman, Hellboy, Superman, Harry Potter and other brands, draw audiences because they relate with or enjoy the characters within those stories. So it made sense for me to come up with my own characters and stories to brand.

For every dollar earned from box office or television revenue, there is roughly four to five times that earned from VHS, digital online, DVD sales and rentals.  These figures are dwarfed by the amount of revenue generated by merchandise based on the successful movie brands.  Luckily, this is my area of expertise and I can design boardgames, toys, graphic novels and other merchandise to compliment the screenplays I write.

A target audience will not only pay for tickets to see their favorite characters played by their favorite actors, but will also buy the video/DVD and watch the movie/animation or television show over and over. For movies to become blockbusters they need viewers to watch them again and again. This can be driven by good reviews and positive word of mouth.  Even inter-industry brand promotion and product placement helps.

Great movies are reissued in different formats over the years in new editions. While others end up in the discount bin. Bigger star power, larger awareness and profile, bigger budgets, and a more powerful promotional campaign from studios does not always guarantee franchise success. Low budget films can become huge unexpected hits and prized collector’s items because their screenplay are just better.

That is why I have chosen four of my best movie ideas to develop to final script in 2009.  Because the movie business finances big budget tentpole movies and the compensation for my time and effort is greater for writing these kinds of brand specific projects, I am going to focus on these type of films, it just makes sense. Mind you, with one exception – one script is a low budget project that has the potential to be made locally her in Vancouver, Hollywood North.

My goal has always been to create and develop the best entertainment products as possible. Design characters that audiences will love, and films that will stand the test of time. Brands that will still be in the public’s mind long after I have passed away.  Films, video games and merchandise licensed from such entertainment properties that people will enjoy forever. This has been one of my goal for decades.

I look forward to the new year and writing the next screenplay which will hopefully, turn into a success brand the world will enjoy.