MGM is a leading entertainment company focused on the production and global distribution of film and TV content across all platforms. As it is increasingly working in the location-based entertainment (LBE) sector, License Global spoke to Robert Marick, executive vice president, global consumer products and experiences at MGM to find out more.
MGM on the location-based experience space
Now that things seem to be returning to normal in the wake of COVID-19, Marick begins by talking about some of the changes he is seeing in the LBE space:
“There have been so many changes in every aspect of our lives. There’s pent-up demand for consumers to get out of the house, but with certain limitations regarding what they can and can’t do.”
“One of the things I’m seeing is licensing lower capital expenditure (CapEx) attractions. So, a lot more drive-through experiences, pop-ups, immersive art and an increase in competition.
The is also more use of indoor and outdoor space and acceleration in technology. Many attractions have become entirely touchless in all transactions. I think these are many good things that you see because of COVID, but I believe these are here to stay for a while. Keeping people safe and comfortable is going to be essential.”
LBE is key in engaging fans
LBE, Marick contends, is a vital part of customer engagement.
“We live in an experience economy and the definition and how the media experience is evolving, so my job at MGM is to deepen audience connections across multiple consumer touchpoints, and there are three buckets in which MGM can interact with consumers.
“Number one is all about viewing our content; that’s how we engage our consumers. The second touchpoint is products: so, home entertainment, digital download, publishing, interactive games.”
“The third is what I call ‘living the experience.’ That’s where location and live entertainment come along. If you look at this as a 360 circle, we’re hoping the consumer views the content and likes it enough they want to keep it. And once they’ve kept it, they want to live it, and hopefully, their living experience will drive to more viewing. I think that is very much in keeping with our approach to the experience economy.”
MGM is also seeing that consumers are looking for immersive social media pop-ups:
“We know that because we see how millennials spend their time and resources. A recent study says that three out of four millennials spend more money on experiences than physical goods, and they’re also spending 50% more. This leads to our job, and my job as a brand steward is to provide those experiences.”
MGM’s approach to new experiences
MGM takes a layered approach to opening new licensing opportunities in the LBE space.
“If you imagine a pyramid, and in that pyramid, you’ve got these layers,” explains Marick. “The simplest executions are at the bottom, like a travelling exhibition or live entertainment. Then it progressively gets a little bit more complicated or more complex, with attractions or retail and restaurants. Then, ultimately, at the very top is an integrated resort or themed land, for example.”
Two years ago, MGM was mainly searching for big partners for integrated resorts, themed land, then narrowing it down to indoor entertainment centres, retail, and finally, the touring exhibition.
However:
“We’re now looking from the bottom up. Now I look for opportunities starting in live events – our upcoming Rocky concert series or our Rocky Run, for example – and moving to larger, more interactive attractions. So, our interactive travel apps, then getting into retail and dining, and eventually, back into the ultimate brand. But I think it will take three to five years to build into that.”
The future of LBE
On the future of experiences in the global LBE marketplace, MGM’s Marick says:
“My job is looking at everything from a global perspective, and so where my strategy two years ago was: think global, act locally; now, it’s more about executing local and expanding globally. Markets such as Asia and the GCC continue to have the most robust opportunities.
“However, COVID has changed that approach, both on CapEx and product backlog. While I’m going to continue to look for opportunities in Asia and GCC, we know that consumers are spending more time domestically, so – certainly for my brands – with MGM being such an Americana brand, we are focused on North America, testing them out and then rolling out into other markets.”
Developers and operators are also experiencing a backlog of opportunities and scaling back in CapEx.
“We’ll continue to look at Asia and GCC because I think markets such as Japan, Korea and KSA are all ripe for these opportunities,” he adds.
A successful track record
MGM has presented several successful LBE experiences, including the popular Rocky Run in Philadelphia, which is now in its eighth year.
“We have upwards of 14,000 people show up to live and breathe anything “Rocky,” whether dressing up in their favourite costume or rooting on their friend in the 5K, 10-mile or Italian Stallion half marathon,” says Marick.
“Because of the pandemic, we introduced that into a virtual world where you participate virtually. Rather than travel to Philadelphia, you could participate in the Rocky Challenge in 100 markets around the country.”
MGM continues to innovate in the experience space
Marick also identifies MGM’s film concert series as a highlight, where guests can watch their favourite film alongside a 48-piece orchestra:
“We’ve announced both a Rocky show and a Legally Blonde concert, with more in the coming weeks.”
Then, a new idea was born out of the pandemic. This is the concept of phone apps acting as tour guides:
“We have a partnership with a company called Bounce, which created Rocky East Philadelphia, a travel app that takes you to places in Philadelphia where the Rocky films were shot. Using your phone app, you visit those locations. We show you behind-the-scenes photographs, share stories, and introduce you to restaurants and other experiences along the route that either took place in the films or were inspirations to the film and cast.
“We’re taking that idea to expand our Pink Panther property as well.
“Finally, we are doubling down on indoor entertainment centres and looking to create MGM studios behind-the-scenes tours using green screens, photo ops, and interactive technology so that you can experience the magic behind movie-making. You can go into your favourite films and TV shows. We have a lot more opportunities, but I think those are some that I’m most excited about.”
Location-based entertainment will be the core theme of Licensing Expo 2022 in Las Vegas. For more information on attending the event to meet exhibitors, delegates, and speakers from across the brand licensing market, or to find future partners in the LBE space, click here to register.
Top image courtesy of MGM
