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TOTAL LICENSING
Fundamentally, the number of prop- POP promotions. cally increased 12% in real terms to
erties offered to basically the same Competition is indeed becoming US$ 318.8 million, although largely
retailers has continued its upward fiercer on all sides of the business. due to higher ticket prices.
trend, thus making negotiations for However companies and licensing ex- Another factor in the growth is that
limited shelf space with top retailers ecutives operating in Brazil have been TV stations are involved in local pro-
even more challenging. extremely optimistic and quite inge- ductions of soap operas, original chil-
Since most international licensors nious in identifying unexplored niches dren / adult series and sitcoms. These
work through local agents (with the and products. are translating well in terms of home
exceptions of Disney, Warner, Mattel entertainment sales. In fact, TV Re-
and Sanrio), the ef- Market Development cord (which achieves second position
BRAZIL - THE FACTS
ficient coordination 2006 saw a dramatic expansion of li- in the country’s audience ratings) has
between licensing censing in all major sectors of the in- directed investment towards buy-
agents and retailers is dustry, reaching 70% of all toys manu- ing and expanding a large production
Population 188.3 m
not generally the rule, factured and/or imported, 60% of all center in Rio de Janeiro following the
GDP per capita $4373 US
a situation aggravated school supplies produced and 35% to successful model set by TV Globo.
by the lack of POS / 40% in categories such as shoes, food A further reason for growth is that
TV Penetration 88.4%
merchandising retail supplies and apparel. international and and National National lifestyesty--
Cable Penetration 9.2%
funds. It follows that Companies across the board – from le brands have entered the licensing
Satellite Penetration 22.3%
medium to big chains the bigger companies through the marketplace and are seeking to ex-
PC Penetration 9.9%
will favor and allocate mid size and down to the small com- pand their local operations through
Internet Penetration 11.1%
floor space to those panies – have been lining up in order licensing. These include Speedo, CAT,
VCR Penetration 46.7%
licensors with in- to finalise contracts, attracted by in- All Star, local Brazilian designers and
DVD Penetration 46.1%
depth knowledge and creased investments and ad-spending others.
Box Office 2006 $318.8 m
resources to back flowing from a number, of course, of According to most of the licensing
their brands with rel- course, the properties from the major agents involved in the market, this
evant materials and studios. In fact, box office receipts lo- new boom is the result of all parties
LATIN AMERICA SPOTLIGHT: ITC, BRAZIL
ITC is one of the leading licensing com- fourteen of which had been agreed in
panies in Brazil. With over twenty-two 2006. Garfield sales were, of course,
years of experience and a company stimulated by the release of the Gar-
headed by Peter Carreiro and employing field 2 movie which contributed to the
thirty-nine staff, ITC currently represent increase in the number of contracts and
the licensing programs for more than the general expansion of the licensing
forty brands through licensors including program.
Marvel, Paws, MGA, United Media, Cop 2006 also saw ITC sign an agency
Corp, Intercontinental, Jetix and Mercis. agreement with Jetix for Sonic X in Bra-
In all, ITC has more than 230 current zil. The company has already begun ne-
active licenses through 115 different li- gotiations and believe that Sonic X will
censees and, with the addition of more be highly successful in the territory.
than thirty new deals in 2007, ITC ex- At the same time, ITC signed to repre-
pect royalty revenues to increase by sent Cop Corp’s properties – notably
more than 20% this year. art-based properties It’s Happy Bunny
In 2006, excluding the and Barcode Kitties.
In May this year, a major summit was
USA, Brazil was the Together with Garfield, Snoopy has been
organised by ITC in order to introduce
highest earning mar- represented by ITC for over twenty
the new MGA properties to Brazilian
ket for Marvel charac- years. New Snoopy contracts include a
licensees and retailers together with
ters and, last year signed a range of five pocket book titles from
presenting Bratz: The Movie – the full
contract with Sony for promotional LP&M and a range of plush from Buba
length feature film from Crystal Sky
rights for the Spider-Man 3 movie. Toy Company.
and Lions Gate that will debut in Brazil,
By early this year, more than 45 licenses Finally to MGA and whilst ITC have rep-
through Playarte in October.
had already been signed for Spi- resented Bratz for a number of years
The successful summit was attended
der-Man 3. now, at the end of last year they were
by Diana Luna, International Licensing
Staying with last year and ITC assigned rights to all the MGA proper-
Manager and Natalie Gonzales, Inter-
were acknowledged as the Best ties including Zapf Creations, Storytime
national Director of MGA together with
International Agent by Paws, ending the Princess, Little Tikes, Yummi Land, Bratz
163 delegates, representing eighty-sev-
year with twenty-four signed contracts, Ponyz, Bratz Babyz and Bratz Kids.
en companies.
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