The dynamic world of entertainment provides many content and brand opportunities for consumer products businesses, like Funko, to make products. But rather than being a merely transactional relationship between an IP owner and an IP licensee, the best partnerships are symbiotic in nature. A primary goal of studios is the creation and distribution of content, but consumer products partnerships play a crucial role in sustaining and expanding the reach of these IPS. Great consumer products companies, like Funko where I work, benefit from the association with beloved characters and storylines, creating a mutually beneficial ecosystem, and in turn not only support entertainment brands financially, but also help expand their fandoms.
Driving Revenue Streams
Consumer products, ranging from collectibles, toys and apparel to video games and theme park attractions, represent a significant revenue stream for studios and IP owners. Merchandising allows these entities to extend their storytelling beyond the screen, leveraging characters and narratives to create tangible products and experiences for fans of all ages. For example, the Star Wars franchise has built an empire of consumer products, from Funko Pop! and toys to Loungefly and apparel lines, generating billions in revenue for Lucasfilm and its parent company Disney. Star Wars fans love collecting their favourite characters, like Grogu from the hit series The Mandalorian.
Amplifying Brand Visibility
The presence of consumer products serves as a powerful marketing tool, amplifying the visibility of studio IPs across various demographics and markets. A fan with a Funko Pop! collection or a kid wearing a princess costume becomes a walking advertisement for the associated franchise. This visibility not only reinforces brand recognition but also cultivates a sense of loyalty and engagement among consumers.
Diversifying Revenue Streams
A successful consumer products programme helps studios and IPs diversify their revenue streams beyond traditional media and theatrical channels. This revenue provided by consumer products is especially valuable in an era where consumption habits are rapidly changing, and the media landscape becomes ever more fragmented. IP owners and studios can try to sign new consumer products partners in new areas, whether they are new categories, territories, or retail segments. Successful campaigns thus extend the fanbase into new areas, which mitigates the risks associated with box office performance or advertising revenues.
Companies like Funko Foster Creative Collaboration
In the realm of pop culture collectibles, one name reigns supreme: Funko. What began as a small company producing nostalgic bobbleheads in 1998 has transformed into a global phenomenon, captivating fans of all ages with our iconic vinyl figures and diverse product lines. With Funko fans displaying their favourite collectibles in their homes and workplaces, Funko has become synonymous with the celebration of fandom.
The creation of our ranges always involves collaboration between IP owners and our creative teams. Funko is one of the world’s largest proprietor of licences and works with all the major studios, as well as global streaming platforms, anime IP owners, major sports brands like NBA and the NFL, representatives of music stars, and video game companies. Designing a range of Funko collectibles requires a creative vision to translate that IP into compelling products, as well as a deep understanding of the underlying IP. This collaborative process not only drives product innovation but also strengthens the bond between studios and their fan base, as these fans get to collect the characters they love in Funko form.
Conclusion
In the ever-evolving landscape of entertainment, great consumer companies like Funko make much more than just merchandise—they create cherished items for entertainment consumers to display their fandom, supporting a symbiotic relationship between studios and those consumer products companies. By driving revenue streams, amplifying brand visibility, diversifying business segments, fostering creative collaboration, and expanding the fan experience, consumer products play a crucial role in sustaining and growing the reach of beloved franchises. As the entertainment industry continues to innovate and adapt, the symbiotic relationship between consumer products’ companies and IP owners will remain a cornerstone of success.
