Royalties from licensing categories in the U. S. totaled $5.95 billion in 2005, a 1.8% increase from 2004, according to a recent study by the Licensing Industry Merchandisers’ Association.
“Licensing is a healthy industry,” said Charles Riotto, LIMA president, speaking yesterday at the Licensing International 2006 show at the Jacob Javits Center in New York City. All major categories showed healthy signs of growth, he said.
Entertainment and character licensing continued to dominate, with $2.62 billion in royalty revenue, accounting for 44% of the licensing market. Despite a struggle at the box office, fans “are still willing to wear and play with their favorite characters,” Riotto said.
Trademarks/brands saw slight growth, at 0.5% or $5 million to an annual total of $1.086 billion. Fashion ranked third at $822 million, up $8 million or 1% from 2004. Sports licensing followed at $810 million, a 1.9% increase from $795 million, largely due to a recovery from work stoppages from the pervious year, Riotto said.
Though small in comparison, music licensing is gaining ground. The category received a 4.9% increase or $6 million hike in 2005 to $128 million. Riotto attributed growth in the category to the popularity of music stars and hip hop celebrities.
Collegiate licensing saw a 1% or $2 million increase in 2005 to $203 million, while art licensing earned a 2.9% or $4 million increase to $175 million in 2005, according to the study. For its part, publishing remained flat at $41 million.
The study was commissioned by LIMA and conducted by researchers at the Yale School of Management and the Harvard Business School. This is the eighth year LIMA has conducted the study.
The Licensing Show, in its 26th year, features some 6,000 properties, with 200 new exhibitors this year. A record number of attendees are expected at the show (23,000), which runs through Thursday.
Network
