LBE Goes Narrower, Deeper with Licensing
By Mark Seavy
As the market for licensed location-based entertainment (LBE) widens, the focus for it is narrowing.
That doesn’t mean LBE’s potential is shrinking. Rather, the IP involved is becoming more targeted and expanding outside the entertainment and licensed characters that have long been staples of the business.
The National Football League (NFL), for example, is setting strategy for extending “experiences” beyond those already deployed in the U.S. and international markets, the latter having been introduced when the organization launched the first regular season game in Mexico in 2005. Among the ideas being considered are ticketed immersive exhibits (both permanent and touring) as well as an event similar to the annual Fanatics Fest that would involve live music and player appearances.
“The goal is not to do a repeat of what has been done but rather take the experience to the next level for the fan so our core categories that have been identified are being marketed to [potential] licensees,” said George Wade, President and Founder of the consulting firm Bay Laurel Advisors. “These aren’t meant to be special events but rather an experiential business unto itself that is not tied to games or the season. Immersiveness is key for just about everything now because consumers paying the ticket prices don’t want something that is passive but rather involves being part of it.”
That effort comes as brands seek deeper ties with consumers, and going narrower is a key strategy to appeal to devoted followings. This also means expanding the range of LBE outside the typical themed rides and “lands.”
In addition to sports brands, a number of videogames—which have recently gained traction in films and streaming series after years of false starts—are now taking flight in theme parks. That includes Microsoft’s Bethesda Softworks’ videogame Fallout, which saw its fanbase grow following the release of Amazon Prime’s streaming series, launched last year as a haunted house as part of Universal Studios “Halloween Horror Nights” at parks in Orlando, FL and Hollywood, CA.
Additionally, heavy metal icon Ozzy Osbourne, of Black Sabath fame, will be at the center of Universal’s “Halloween Horror Nights” starting August 28 in Florida and starting September 3 in California. And the 41,500-square-foot Gameroom Powered by Hasbro opened at the American Dream mall in East Rutherford, NJ in 2024 replete with GI Joe: Battle Station laser tag and a Candyland Milkshake Bar.
The trend of going narrower and deeper to attract a devoted fan base hasn’t been lost on independent park operators.
Six Flags Entertainment, which has long featured licensed rides with characters like Green Lantern and Superman, opened a Looney Tunes Land at its Magic Mountain park in Santa Clarita, CA in June. And while licensing’s future at Six Flags has been open to question since it merged with Cedar Fair Entertainment in 2024, the park operator is spending $425-$450 million on capital projects for its facilities this year, said CEO John Reilly, who joined Six Flags from Palace Entertainment late last year.
“Strategically, these types of offerings… allow us to attract guests who may not typically visit during our operating season,” Reilly said. “The momentum we are building reflects the actions we’ve taken across pricing, product design, and park-level execution.”
That momentum is expected to increase in the coming years.
Mattel licensee Epic Resorts Destinations is expected to soon start construction of an Adventureland park in Bonner Springs, KA (following initial plans to open this year). A similar park in Glendale, AZ has also faced delays. Under its agreement, Epic is to complete the Arizona facility by 2030.
And Soho Estates recently submitted plans for a new immersive attraction in London’s Leicester Square. The planning application, lodged with Westminster City Council, would redevelop a 50,000-square-foot space with double-height ceilings and a restaurant on top.
“You need to make sure the experience you are developing is going to be able to attract the demographic that is going to be able to sell enough tickets for a return on your investment,” Wade said. “Six Flags, for example, knows that their core customer for Halloween is a teen to young adult who is looking to be scared and that is not your typical family demographic. It is much narrower demographic.”