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Traditional Toys/Games

Royalty Profile for Licensed Toys/Games

 

Sector value, U.S. & Canada, 2017: $7.70 billion

Proportion of retail sales of licensed merchandise, U.S. & Canada, 2017: 7.1%

Average royalty, U.S. & Canada, 2018: 10.62%

Royalty range, U.S. & Canada, 2018: 5–21%

Average royalty, U.S. & Canada, (10 years) 2009–2018: 10.51%

Analysis

Sales of licensed lines sank in 2017 and 2018 following specialty retailer closures and a poor overall sales environment.

Tentpole movie properties—not licensed extensively in the toy category these days, except for sequels—are generally
in the 12%–15% range, with the biggest blockbusters (i.e., Disney/Marvel and Warner Bros.) potentially going higher; non-tentpole, which have a narrow range of SKUs, are closer to 10%–12%. Juvenile TV properties also are in the 10%–12% range.

Royalty rates for brands that are licensed into the toy business generally fall into the 6%–8% range.


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