Business
23:02, 14-Jul-2017
Merchandising of movie IPs on the rise in China
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By CGTN's New Money
Costumes, toys and masks are some of the products that a true and loyal movie fan would likely own.
China's movie Intellectual Property (IP) products market started gathering strength with the release of Doraemon and Transformers in the 1990s. As homemade TV drama shows enjoy exponential popularity, more and more movie IP products are designed and made by China.
Merchandising is what turned George Lucas’ record-breaking Star Wars saga into a multimedia, billion-dollar franchise. But such business model is still relatively young in China.
As the country steps up intellectual property protection, businesses aimed at merchandising IPs are also on the rise.
IP merchandising is more of a western thing, but Chinese entrepreneurs are trying to catch up in the sector.
But what kind of license is required to get the right to manage a certain IP's merchandise?
Internationally, only 30 to 40 percent of a movie's revenue comes from tickets sale, with licensing products accounting for the rest. In China however, 90 to 95 percent of a production's revenue come from the box office and product placement. How is the Chinese market measuring up?
