By Mark Seavy

As influencers, streaming services, and digital channels emerge as ever-larger forces in children’s content, toymakers are lessening their reliance on theatrical releases.

That shift doesn’t mean that theatrical films have completely ceased as a foundation for licensing, however. That much is underscored by the planned releases of Superman (July 11th), Jurassic World: Rebirth (July 2nd), and other upcoming blockbusters that will be supported by significant consumer products programs. But with the continued rise of YouTube, TikTok, Netflix, and others, there is a new content landscape to mine for toys.

YouTuber Rachel Anne “Ms. Rachel” Griffen, for example, secured a prominent placement in Spin Master’s Melissa & Doug’s booth at the recent New York Toy Fair, along with a broad selection of toys. YouTube’s Jimmy “MrBeast” Donaldson, meanwhile, who has created a licensing empire, received similar treatment at the Moose Toys booth. And Mattel also weighed in at the trade show with products tied to Netflix content and its own Hot Wheels Let’s Race series, which launched a third season of 22-minute episodes on the streaming service earlier this month.

“Brands are being more about storytelling and entertainment, and you have to earn the right to do longer form content,” said Sunny Lauridsen, Head of Global Licensing and Brand Strategy at Just Play. “If you haven’t created a backstory, you don’t deserve to put long-form content out and earn the right to demand that much of people’s time. Sometimes companies rush too fast into YouTube. They should start with influencer content, shorts, and other things that are going to drive engagement.”

In an effort to connect with younger consumers on the platforms and in the formats that appeal to them, many of the top influencers and streaming services have become all about brand building.

Netflix, for example, had little in the way of a licensing program before it began to own content rights. That started to change with the release of Stranger Things in 2016 and has since grown to includes countless toy lines and pop-up experiences. Those location-based entertainment efforts will expand again later this year with the launch of two 100,000-square-foot Netflix House facilities in King of Prussia, PA and Dallas, TX. The facilities will have a retail store alongside rotating experiences, food and beverage offerings, and photo opportunities.

Netflix also recently opened a Netflix Bites restaurant at the MGM Grand in Las Vegas, NV featuring 70 different themed dishes and drinks. The menu includes a World Wrestling Entertainment Smash Burger in an homage to Monday Night Raw, which began streaming on Netflix in January and has collectible figures in development with Mattel. Netflix’s aim is to burnish its brand, rather than emerge as a competing retailer, said Cindy Chang, Head of Toys and Publishing at Netflix.

“The philosophy is very much to go where the fan is,” Chang said.

But finding those fans is not an easy task despite the mounds of data available, licensing industry executives said. With many influencers having millions of followers, there is “a thousand times” more content available than through traditional TV, cable, and theatrical outlets, said Emily Holtz, Director of Retail Video and Programmatic at Google, which purchased YouTube for $1.65 billion in 2006. Connected TV (CTV) devices linked to the Internet account for 42.9% of U.S. viewership. Of that total, 25% is YouTube, she said.

Once content is secured, the brand must be consistent across all platforms, including the content, logo and packaging, and finished product, said Kevin Tully, VP of Global Packaging and Creative Services at Jazwares.

“It’s all about how you are going to talk to this generation of kids,” said Holtz. “They want to hear from brands and products in a way that is real and so, as marketers, we need to look at that because if it doesn’t feel real they move on. Even if it is the biggest YouTuber in the world, if is not authentic to your brand it is not going connect with your audience and you probably spent a ton of money that is wasted.”