So, who is next? Disney and Target? Hasbro and Hulu? Spin Master and Paramount Plus? Disney and Mattel?
Amidst all of the turmoil and stress around the supply chain, the consumer products world has largely missed what will likely turn out to be a major paradigm shift in retail. Amazon and Lego’s decision to sign an exclusive product and streaming rights agreement forLego’s Monkey Kid line is a historic first. Walmart’s quick response (30 days later) was to sign a deal with Netflix, signifying how important Walmart and Netflix saw the Lego Amazon agreement.
Here is how Gary Symons, Editor in Chief of The Licensing Letter, certainly got it. Here is how he put it in his article, “How Lego’s Monkie Kid Deal with Amazon Could Change Toy Licensing:”
And that deal is much more than just a content agreement. In fact, it could point to a huge advantage for Amazon that changes the way toy companies look at content and product licensing, and who they choose to work with.
The Netflix Walmart agreement calls for Walmart to provide a Netflix Hub that exclusively sells merchandise tied to Netflix entertainment properties. I visited the site and found products based on Stranger Things, The Witcher, and CoComelon. Here is how Jeff Evans, Executive Vice President, Entertainment, Toys, and Seasonal, Walmart U.S., describes the deal:
The Netflix Hub brings together some of its most popular shows in its first digital storefront with a national retailer, and we’re proud to partner with them on this new adventure that will let our customers dive even deeper into their favorite stories and characters.
This looks like a great deal for Netflix and for those who license and sell Netflix-based
products. What is not clear to me is what exactly Walmart gets out of the agreement. I suspect there is another shoe to drop.
So, who is next? Disney and Target? Hasbro and Hulu? Spin Master and Paramount Plus? Disney and Mattel?
Whatever combination is coming down the pike, you can bet that the days of entertainment and consumer products being in separate silos is over. Toy companies, pick your partner…the sooner the better.
Whatever combination is coming down the pike, you can bet that the days of entertainment and consumer products being in separate silos is over. Toy companies, pick your partner.
