Live from the Licensing Show: Disney Licensing Sales to Hit $26 Billion
Thanks to a robust licensing program, retail sales for the Walt Disney Co. are expected to reach $26 billion this year, the company said this week.
Global retail sales are being driven by licensed merchandise for Disney Princesses, Mickey Mouse and Winnie the Pooh, Disney/Pixar’s Cars, Pirates of the Caribbean and Disney Fairies. Sales were expected to grow 13% from last year.
The company said it plans to expand its licensing business, targeting tweens and its preschool programming on the Disney Channel, and hit movies. Disney shows like “High School Musical,” “Hannah Montana” and “That’s So Raven” are fueling the company’s success. Retail sales for Disney’s tween business is expected to reach $400 million worldwide this year.
For example, a line of “High School Musical” merchandise will launch at Wal-Mart for back-to-school with a 52-week sponsorship on Disney Channel that includes in-store promotions, circulars and Wal-Mart’s PRN programming. In addition, “High School Musical 2” will be released in August on Disney Channel and another film in the franchise will hit theaters in 2008.
Meanwhile, Disney is rolling out a two-disc CD set, “Hannah Montana 2/Meet Miley Cyrus”, a new DVD, “Hannah Montana Pop Star” supported by a 50-city tour in October. At retail, the franchise will expand its apparel, stationery and home decor line into footwear from Payless Shoes and an expanded line of youth electronics including an LCD TV and electric and acoustic guitars.
A “Hannah Montana: Music Jam” video game on Nintendo DS and “Hannah Montana: Spotlight World Tour” on the Nintendo Wii gaming system will be available this fall.
Disney Fairies franchise retail sales are expected to be more than $800 million this year. The line includes a Web site, which garners more than 1 million daily unique visitors and more than 1.7 million fan-created Fairies with the “Create-A-Fairy” feature since January.
The company is supporting the franchise with a global publishing program. Disney Fairies books are published in 51 countries and 33 languages. Disney will launch “Fairy Haven” and the “Quest for the Wand” by Gail Carson Levine in the U.S. this summer and worldwide this fall. In addition, Disney Fairies magazine, which is available in 24 countries, will launch in 11 more by 2008.
This summer, Buena Vista Worldwide Home Entertainment will launch a global marketing program to support the “Tinker Bell” movie. The campaign includes a range of lifestyle products targeting six-to-nine-year-old girls.
