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Traditional Toys/Games

Royalty Profile for Traditional Toy/Game-based Licensed Merchandise

 

Sector value, U.S. & Canada, 2017: $1.43 billion

Proportion of retail sales of licensed merchandise, U.S. & Canada, 2017: 1.3%

Average royalty, U.S. & Canada, 2018: 8.20%

Royalty range, U.S. & Canada, 2018: 5%–13%

Average royalty, U.S. & Canada, (10 years) 2009–2018: 8.20%

Analysis

Licensing programs based on popular toys and games leverage both the entertainment equity of the toy as well as the power of a brand program, so it makes sense that royalty rates in this category generally have been close to the industry-wide average.

Hot current brands carry royalty rates similar to those of hot entertainment properties (10%–14%), while those of more everyday brands, or those that may be used in retro apparel or other programs, carry royalties that are closer to those of corporate brands in general (6%–9%).


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