By Mark Seavy  

The toy industry is seeking to create a point of difference through inbound and outbound licensing, as well as co-branding carrying dual royalty streams, both of which were highlighted at the recent New York Toy Fair. 

In the case of Hasbro, for example, there has been added emphasis on outbound licensing—royalty revenue has increased 60% over the past three years—as it made brands outside its core business available to third-party toy companies. Just Play (FurReal Friends) and Basic Fun! (Littlest Pet Shop) have posted strong sales of these branded goods.  

Some of this expansion in Hasbro’s outbound licensing—Just Play also unveiled new products under Hasbro’s Skip It brand for the first time in many years—likely can be traced to the hiring of veteran licensing executive Tim Kilpin as President of Toys, Games, Licensing & Entertainment. Additionally, Hasbro has a deep brand portfolio that grew even further over the years due to its acquisitions of companies like Kenner (1991) and Tiger Electronics (1998). 

Mattel has delved less deeply into outbound licensing, but at Toy Fair the company showcased Barbie/Play Doh co-branded playsets as part of its licensing collaboration with Hasbro. The new line is the latest offering stemming from licensing agreements signed between the companies in 2023, under which Hasbro has introduced Barbie Monopoly and Transformers UNO games. 

This spotlight on outbound licensing represents an increased focus on a strategy that has been growing for several years. There was a significant wave in 2019 with Moose Toys (Shopkins), Basic Fun! (Cutetitos), Just Play (Hairdorables), and Jazwares (Nanables), but this slowed in the face of the pandemic the following year.  At the time, Just Play also hired Evolution USA to represent Hairdorables for licensing. 

Just Play revived the effort in 2023 with the hiring of former Mattel executive Evelyn Mazzocco to head an Owned IP Division. Just Play launched two new brands at Toy Fair—Holobrite and Knotz—that it potentially will make available for outbound licensing, company executives said. Just Play plans to launch two other brands by year-end, according to the executives.  

“We are definitely in the space, but it’s not what historically we have been known for, so we had to bring in a different talent pool with a totally different mindset,” said Sunny Lauridsen, Head of Brand Strategy and Licensing at Just Play. “It is question of where, as a company, do we want to play and whether there is opportunistic space in the market we can fit into with our existing portfolio.” 

Perhaps the prime example of this current wave of outbound licensing is Hasbro’s Power Rangers, which it purchased from Saban Brands in 2018 with plans for a revival. Hasbro started talks with Playmates Toys in 2023 about licensing out the brand, a deal that has resulted in a new line being introduced this year, starting with figures ($9.99). Other products will roll out at Walmart, starting online in June through September before opening to other retailers the following month, said Karl Aaronian, SVP for Marketing and Development at Playmates.  

Playmates has also brought on an expert to restore the series’ 145 episodes, the first 60 of which are expected to be completed within 30 days. The content will launch on Netflix and Ninja Kidz TV’s YouTube channel in June, Aaronian said. 

In addition to outbound licensing, there was also an emphasis on dual licensing at Toy Fair. In most cases, licensors in a dual agreement will reduce their royalty rate. In the case of games, for example, where single licenses may average around 10%, a dual license may be in the 15% range for both brands, licensing executives said. 

Basic Fun! is taking full advantage of dual licensing. The company is relaunching Stretch Armstrong, which was first introduced by Kenner in 1976 before being licensed by Hasbro in 2015 to Character Options. In addition to the relaunch, the company is also fielding co-branded versions with Disney’s Stitch, Nickelodeon’s SpongeBob, and other brands. At the same time, Basic Fun! also has Hasbro’s Lite Brite paired with The Lumistella Co.’s Elf on the Shelf, Netflix’s Stranger Things, and others.  

And board game developer The Op, which is a longtime Hasbro licensee for Monopoly, Operation, and others, is readying co-branded versions with Sanrio’s Hello Kitty and Toei Animation’s One Piece. 

“If dual licensing is done right, it is well worth [the] investment because you are getting a crack at potentially two audiences, including the older consumers who remembers the original game and younger ones that may be attracted to the newer IP,” said Adam Sblendorio, VP of Product at The Op.