by Graham Speak, Speak Consulting
IP licensing has become a super-trend in the attractions industry. Disney and Universal have long based their attractions on their IP. Knott’s brought in Peanuts in 1983, and Six Flags acquired Warner Bros. IP rights at a similar time. Over the past 20 years, we’ve seen IP use explode with Thomas Land, and attractions in various locations around the globe themed to Peppa Pig, Nickelodeon, Monopoly, Jumanji and more.
Theme park attractions, character visits, seasonal events, interactive experiences, stage shows and dining experiences (to name a few) – IP licensing is everywhere! However, some reject IP Licensing entirely. Instead, they focus on creating their own stories, seeing IP as an unnecessary cost and prioritising other aspects of the experience.
Four key questions to ask when it comes to IP in attractions
So, how do you know if IP licensing is right for your attraction, and where do you start? Here are 4 big questions to ask.
What are you trying to achieve?
Creating an attendance spike in a quiet seasonal period could require a very different solution to creating a USP to drive a new audience (or getting an existing audience to spend more) to your attraction over many years.
Establishing clear objectives will help you define whether licensing could be a solution. This will also be a great launch point for exploring which IP to partner with and how you might activate and bring it to life.
Who is the audience you want to appeal to?
People often consider IP to mean ‘character’, but that isn’t always the case. There are thousands of businesses now lending their IP to other organisations, from gaming brands, food businesses, artwork and colours – some attractions are even licensing out their assets!
If you know who you are trying to engage with, and the outputs you are aiming to deliver, it will make it a lot easier to imagine the IP you could partner with to excite and interest them.
What will it really cost you?
There are lots of dimensions to consider here. The scale of the project (a seasonal activity versus the creation of a full, immersive land for example), is clearly a huge factor.
Alongside this, it’s worth understanding the objectives of your licensing partner. Yes, they may want a licensing fee. But associated retail revenues could be equally attractive to them; the opportunity to create media and also the brand engagement that the attraction will drive. Understanding this will be helpful in any negotiation.
Other costs to consider include maintaining the attraction to agreed standards and keeping the IP experience fresh. It’s also key to provide the service levels contracted and be a guardian of the brand you are ‘borrowing’.
On the flip side, partnering with a license may help you drive significant incremental revenue and/or save cost on another P&L line. For example, attracting a new audience could cost you £ 100k in advertising creative and media. Could a licensing partnership help you circumnavigate some of that cost, or supercharge your investment?
Are you set up, and willing to invest in a licensed experience?
Licensors spend millions (billions!) building franchises (which is exactly what you want to leverage). So, often more important to them than any income is creating a consistent, authentic brand experience.
This is actually what you are interested in too. It’s the ‘heart’ and ‘story’ behind the brand that makes them attractive to your guests.
Could you actually deliver against licensor requirements? Being clear on these upfront, and ensuring teams are set up and bought into this is critical. (I’ve seen in real life where this isn’t the case and projects ultimately don’t deliver!)
Whilst IP licensing is a mega-trend in attractions and LBE, it isn’t the only solution for every challenge or opportunity. But, providing you have clear objectives and build a strong partnership with the right IP holder, it can deliver stunning, sustainable outcomes.
Over the next few blog posts, we’ll dig into some of these questions in a bit more detail. We will help you consider the role of licensing and IP for your business. We’ll also give some thoughts to help you maximise these partnerships.
Top image: Peppa Pig World at Paultons Park
