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Licensing By The Numbers

Scandal Costs VW $10 Billion in Brand Value
Earlier this year, the VW brand was calculated to be worth $31 billion, the third most valuable auto brand in the world. But the recent emissions scandal has tarnished the “people’s car” company’s longstanding reputation for reliability and trust. By the time the dust settles, VW is expected to lose an estimated $10 billion in brand value, according to brand valuation firm Brand Finance. Those losses are much greater than those suffered by Toyota, the world’s most valuable auto brand, following a series of recalls from 2009 to 2011. “As the scale of the deception has come to light, it is beginning to look as though VW may be facing a crisis of unprecedented scale,” notes BF.

Nike Messes With Texas
Nike declined to exercise its exclusive option to renew its $17 million, seven-year apparel contract with the University of Texas by October 1, leaving the door open for Under Armour and Adidas. Nike would still have 15 days to match any bid under the terms of the current deal. Collegiate Licensing Company ranks Texas as the richest college athletic program in the country and a new deal could be worth more than $15 million per year, surpassing the $169 million 15-year deal Nike made with the University of Michigan this summer.

Entertainment One Takes Control of Peppa Pig
Entertainment One paid a reported £140 million to up its co-ownership of the billion-dollar Peppa Pig pre-school franchise from 15% to 85%. The goal: To reach $2 billion in global sales within five years. In addition to the million in royalties they’ve already earned, Peppa’s creators Mark Baker, Neville Astley and Phil Davies will each retain a 5% ownership interest in the property. Peppa Pig, which first aired in the UK in 2004, is broadcast in over 180 territories and has been licensed for more than 12,000 branded products ranging from ice cream to theme parks.

Halloween Spending Expected to Dip
Halloween consumer spending is predicted to top $6.9 billion, as compared to $7.4 billion in 2014, according to the National Retail Federation. Average spending per person is expected to decline from $77.52 to $74.34. Breakdown:

  • Costumes: $2.5 billion
  • Candy: $2.1 billion
  • Decorations: $1.9 billion
  • Greeting cards: $330 million.

Licensing Drives 5% Increase in U.K. Traditional Toys Sales
Sales of traditional toys and games in the U.K. grew 5% last year to total £2.93 billion, according to research firm Euromonitor. As in the U.S., the licensed products based on major properties like Frozen, Teenage Mutant Ninja Turtles and Pokémon, fueled growth. At £404.3 million, construction toys led product types (thanks in large part to strong LEGO sales), followed by dolls and accessories (£287.6 million), action figures and accessories (£260.1 million), games and puzzles (£259.4 million) and pre-school (£259.4 million).

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