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Melissa & Doug x ViacomCBS – Just the Beginning? image

Melissa & Doug x ViacomCBS – Just the Beginning?

On the surface, last week’s joint announcement by ViacomCBS Consumer Products and Melissa & Doug was just another toy licensing deal, disclosing plans “to deliver PAW Patrol and Blue’s Clues & You! co-branded toy product lines for Fall 2021.”

But it’s a striking deal in that it’s believed to be the first character licensing deal that Melissa & Doug has signed. The company has long been known for its classic wooden toys, crafts and other imagination-based toys that encourage free play.

The news release calls the ViacomCBS relationship “the largest licensing agreement Melissa & Doug has ever signed,” and a spokeswoman says she can’t answer questions about any other licenses “due to confidentiality agreements.” So, it’s not known whether this deal is a one-off, a test, or a move that represents a fundamental change in direction.

“We’re excited to work with a company as iconic as Nickelodeon, one that shares in our mission to make the world a more playful place through thoughtfully researched and designed products and content. The characters of PAW Patrol and Blue’s Clues & You! will help us introduce our hands-on, skill-building toys to an even greater number of children,” said Melissa & Doug Chief Commercial Officer David Henderson in the press release announcing the deal. Henderson joined the company just this May from Newell Brands, three months after Fernando Mercé (ex-Nestlé) was named as the new CEO.

The deal with ViacomCBS brings to mind another brand, built around imagination and free play, that took its first license a little more than 20 years ago after declining to do so for years.

When Lego signed an agreement with Lucas for Star Wars in 1998 – the first products came to market the year after – it turned out to be only the first in a series of entertainment-based licensing pacts, followed a couple of year later by another big one, Harry Potter. Star Wars, in particular, continues to be a huge business for Lego. In 2019, two licensed properties – Star Wars and Marvel Superheroes – were listed by the company among its six most popular themes. Lego has moved beyond entertainment licenses, producing sets with licenses of such things as iconic buildings and automobiles.

The company doesn’t break down the percentage of its business built around licensed properties, but chew on this number: in 2019, Lego paid more than $440 million in royalties. (It also brought in more than $70 million in licensing income.)

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