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Movie Merchandising - an example of what keeps the


Creators Syndicate

FIGHT BACK! BY DAVID HOROWITZ

Movie Merchandising

There are several different ways to measure a movie's success.
There are the critical reviews and word of mouth. Then there's the
box-office gross, traditionally the most important indicator of a
film's popularity. But while ticket sales are still important, these
days, the big money is in movie-related product merchandising.
In terms of consumer economics, movie merchandising is almost
a textbook study in the power of advertising and promotion -- and how
these can be used to create a huge demand for something that never
existed before.
Probably, the best example of that right now is Disney's new
animated feature, "The Lion King." The movie itself was a
pre-manufactured hit. Disney began running movie previews in theaters
back in December, and an extended trailer was included in the
home-video release of Disney's "Aladdin." At the same time, the studio
was busy licensing the manufacture of more than 1,000 "Lion King"
products -- toys, neckties, underwear, party decorations, candy bars,
sheet and blankets, puzzles, books -- even an interactive game for
Sega and Nintendo.
Many of these products hit the market before the movie even
opened. That's called cross promotion. The merchandise promotes the
movie, while the movie promotes the merchandise.
Disney not only benefits from increased ticket sales, it gets
a percentage on product sales from licensed manufacturers and advance
promotion for future sales of "The Lion King" on home video. On top of
all that, Disney also operates 260 highly profitable retail stores in
shopping malls all over the country, and those stores expect record
sales of "Lion King" merchandise.
It's a gamble, of course. If the movie flops at the box
office, then millions of dollars worth of related merchandise is going
to end up sitting in warehouses, unsold and unwanted. But, considering
the commercial success of such films as "The Flintstones," "Jurassic
Park," "Batman" and "Beauty and the Beast," and the hundreds of
millions of dollars worth of products they sold, "The Lion King" looks
like a winner.
The movie grossed more than $42 million during its opening
three-day weekend alone, and it is still going strong. Disney has not
released any sales figures, but with the film doing as well as it is
in theaters, industry experts say retail sales of "Lion King"
merchandise could go as high as $1 billion. ("Aladdin" sold more than
$500 million in related products and $400 million in home video
sales.)
What does this mean to us as parents and consumers? Are we
being manipulated by advertising into buying a lot of useless junk
just to keep the kids happy? I doubt it. Disney has been pretty good
in the past about policing manufacturers and making sure they don't
pass off shoddy merchandise under the Disney name. I also think most
parents are capable of putting reasonable limits on how much they
spend on this kind of product.
In any case, high-powered marketing is a fact of life in this
country, and we have no choice but to live with it. So, when you open
your wallet for that "Lion King" T-shirt or "Flintstones" meal at
McDonald's, think about all the time and money and effort went into
those promotions. It's part of what keeps our consumer economy
rolling.
If you have questions or comments, please write to David
Horowitz at 72662,1775. COPYRIGHT 1994 CREATORS SYNDICATE, INC.


 
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