By Steve Manners, UK Managing Director for Licensing International

The UK’s entertainment licensing sector is in the midst of a profound transformation. As traditional models tethered to linear television and tentpole movie releases face structural decline, the industry is finding new momentum in enduring franchises, evergreen classics, and the explosive growth of anime. For licensors, licensees, and retailers alike, understanding these shifts is key to staying relevant in an increasingly fragmented media landscape.

One of the most noticeable changes in recent years is the waning influence of traditional children’s television and movie-driven properties. Once the primary engine of licensing success, especially in categories like toys, apparel, and publishing, the decline of scheduled TV programming and a reduction in theatrical family releases has caused a pivot in strategy. UK consumers—like their global counterparts—are now driven by on-demand viewing, with digital platforms becoming the primary access point for entertainment. This has blurred the lines between local and global, old and new, niche and mainstream.

In this new context, evergreen franchises and classic IPs have seen a resurgence. Brands such as Harry Potter, Star Wars, Pokémon, Beatrix Potter, Paddington, and Lilo & Stitch have continued to thrive not just through new content, but through lifestyle positioning, nostalgia marketing, and an ever-expanding product universe. Retailers and licensors are increasingly leaning into these properties because they offer consistency in an unpredictable content environment. The durability of these IPs also opens the door to premium collaborations, collectibles, and experiential licensing, which resonate strongly with both younger consumers and adult fans.

Another major development in the UK and across Europe is the rise of anime. Once considered a niche genre, anime has firmly entered the mainstream thanks in part to the ubiquity of streaming services like Netflix, Crunchyroll, and Prime Video, which have brought shows like Attack on Titan, My Hero Academia, and Demon Slayer to new audiences. In the UK, anime fandom is not just growing among teens and young adults but also influencing broader pop culture—from fashion and music to collectibles and conventions. Licensing activity has accelerated as a result, with apparel, accessories, and homewares being particularly strong categories.

Interestingly, anime’s appeal is often less seasonal or release-dependent compared to traditional Western properties. Instead, it’s driven by community, identity, and an emotional connection to characters and themes, making it highly merchandisable year-round. This has created new opportunities for UK-based licensees and retailers who may have previously overlooked the category.

There have been several recent examples of robust entertainment licensing programs that reflect this new reality. For example, the continued expansion of Bluey across UK retail, spanning many categories, demonstrates the strength of emotionally intelligent preschool content that thrives on Cbeebies, BBC iPlayer, and Disney+. In anime, the success of One Piece in the UK, including product launches tied to both the anime and the Netflix live-action series, highlighted how multimedia storytelling can drive renewed engagement with long-standing franchises.

When it comes to product categories, a few clear standouts have emerged. Apparel continues to lead the way, especially as entertainment IPs increasingly intersect with fashion trends and fandom expression. Collectibles and trading cards, buoyed by nostalgia and TikTok-fuelled resurgences, have also shown remarkable growth. Meanwhile, lifestyle categories such as beauty and healthcare, homewares, and stationery are being used to embed IP into everyday routines, particularly for young adult fans who see characters as extensions of their identity.

Looking ahead, the entertainment licensing sector in the UK is likely to grow through diversification and direct-to-fan engagement. With younger consumers expecting brands to be digitally native, culturally aware, and socially responsible, licensors are rethinking how they market and merchandise their properties. Franchise building is no longer just about new content releases, it’s about world-building, long-term brand management, and creating an ecosystem that includes gaming, immersive experiences, influencer partnerships, and user-generated content.

As streaming platforms increasingly become global content factories, IP will travel faster, further, and with less need for traditional promotional cycles. This opens new licensing possibilities but also demands greater agility, cultural awareness, and willingness to take risks.

In summary, while the UK entertainment licensing market is no longer as linear or predictable as it once was, it’s rich with opportunity for those ready to embrace change. From the strength of legacy brands and the rise of anime to the evolving role of digital platforms and fandom communities, the landscape is shifting—but far from shrinking. For those who adapt, the future remains bright.