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Original IP Cements a New Home  image

Original IP Cements a New Home 

By Mark Seavy 

Streaming’s supplanting of movie theaters as the home to suddenly popular original IP was further cemented this summer with the release of Netflix’s animated film KPop Demon Hunters and the second season of its viral live-action series Wednesday. 

That shift has been gradual. For example, Disney’s surprise box office hit Frozen took the licensing industry by storm after its release in 2013 and sent retailers scrambling for merchandise. Since then, streaming—which at the time was just building momentum—has produced a steady flow of films and shows that quickly gained popularity with fans and the licensing industry alike. Now, the biggest blockbusters can often be found on TV and mobile screens rather than in theaters.  

Netflix’s Stranger Things, which is coming back for a fifth and final season (November 26), may have kicked off the trend when it was released in 2017. But it was quickly followed by the likes of Ted Lasso (2020), Squid Game (2021), Wednesday (2022), and others across a number of streaming platforms. 

Yet the Sony Pictures Animation-produced KPop Demon Hunters film, which was released on Netflix on June 20, appears to have surpassed many of its streaming predecessors in amassing 158.8 million views as of August 7. It is ranked as the fourth most-watched English-language film on Netflix.  

Saddled with a surprise hit, Netflix itself developed the initial run of merchandise that was available through retailers like Hot Topic and released film assets to licensees in July.  

Poster and calendar supplier Trends International, for example, initially sold product online through its Allposters.com website and is delivering those items to brick-and-mortar retailers this month, said Jeff Loeser, SVP for Licensing at Trends. The company got assets and Netflix approvals within a few days and made it available initially for print-on-demand in early July. 

“This [KPop Demon Hunters] is one that was probably a bit of a surprise for everyone that turned into a chase opportunity,” Loeser said. “Fortunately, our lead times are short, and the needs are minimal for product, so we could respond quickly. People are consuming content differently. There still is potential for box office originals, but movie theaters are filled now with franchises and known IP.” 

For the most part, licensees said while there is potential for conflict in distribution when streaming services design and develop products internally, it so far hasn’t been an issue. 

“We have our own exclusive and dedicated channels of distribution at retail and eCommerce, so it [streamers’ internal development] doesn’t lessen our interest or desire for product,” a licensee executive said. “We have been in this situation before where Netflix develops product and wants something different from that which is available through retail, and it hasn’t been an issue.” 

This shift in where consumers can connect with original IP comes as major studios are more reliant than ever on tried-and-true franchises. Just this summer theaters saw Warner Bros. Discovery DC Studios’ Superman (July 11); Lionsgate Studios’ Ballerina (June 6), a spin-off of the John Wick franchise; and Disney’s Fantastic Four: First Steps (July 25). The latter was under the Marvel Cinematic Universe (MCU) banner and a new take on a film series that dates back to 1994.  

Disney’s live-action Lilo & Stitch (May 23) crossed the $1 billion mark at the global box office, making it Hollywood’s first film to reach that mark this year. It was also on track to be the company’s second largest consumer products franchise behind Mickey Mouse. Disney also has the sequels Zootopia 2 (November 26) and Avatar: Fire and Ash (December 19) on tap later this year. 

Disney CEO Robert Iger told analysts in an earnings conference call that the media giant’s original content is being released through its 20th Century Studios (Superman) and Searchlight Pictures shingles.  

“We continue to be focused on creating new IP and, obviously, that’s of great value to us long term,” Iger said. “But we also know that the popularity of our older IP remains significant and the opportunities to either produce sequels or to basically bring them forward in a more modern way are many. I wouldn’t say that we’ve got a priority one way or the other [between original and franchise]. Our priority is to put out great movies that ultimately resonate with consumers. And the more we can find and develop original property, the better, of course.” 

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