If it doesn't, then that merchandise will be in the markdown bin, so it's still a big gamble for the toy manufacturers. Retailers are also showing more caution to these campaigns. Product licensing isn't an option for the studios. It was built into the expected revenue stream. The strategy works both ways, earning a film more money and encouraging people, particularly kids, to see a film.
Few films lend themselves to broad merchandising.
Those that do churn out coffee mugs, games, beach towels, Halloween costumes, trading cards, calendars, posters and more. Toy makers share in the risk by competing for the licensing rights and assuming the cost of making the products. Studios often get 12 percent to 15 percent of the wholesale. That film generated a bidding war between Hasbro Inc. and Mattel Inc., who ended up sharing the rights. Another challenge is keeping up with kids' changing leisure tastes, which have shifted from action figures to computer games.