License for thrill and amusement

Licensing

Article written by : Seema Seth

For the new cult of theme parks that are ever scouting for newer ways to better their profits rather than increasing the admission fees, ‘licensed attraction’ is emerging to be the biggest money spinner.

Theme parks are becoming very popular these days more so from the days of yore when they were losing propositions, except for the likes of few biggies like Disney and Santa Claus who seemed to have some magic formula of attracting kids and elders alike even in recession. Well, have you ever spared a thought what keeps them afloat when others are drowning in loss? Also, why many of these theme parks shut down as fast as they come?

At a glance

Accepted that the attraction of theme parks cannot be ignored but the bitter fact remains that a new theme park attracts footfalls initially but slowly looses charm and there are no repeat visits. If a kid requests his parents, “Let us go to the theme park”, pat comes a reply, “We went there last time, what is new? We have seen that already”. Here is the crux; it needs constant innovations to reignite the spark and maintain it. As per Jibi George, COO, Dream Theatre, “There need to be new activities introduced every now and then to ensure that people keep pouring in. Hype created around and via new rides, attractions, celebrity visits, etc can help maintain attraction in a great way”. If this is understood and followed by theme parks, they can soon convert their failed businesses into a winning pitch.

Rod Ridder, Partner, Bradford Licensing LLC, USA shares, “Theme parks’ licensing include the right to sell merchandise representing the characters at the parks, and to use the characters in advertising as walk-around characters and in the theme based rides. These characters promote increased attendance, support higher ticket prices, contribute to the lengths-of-stay and enhances the ‘park spending’ element.” As per a report, merchandise make for more than 20 per cent of revenue. T-shirts, caps, hats, coffee mugs wrist band, key chains, dresses, hair bands, toys, etc are some popular merchandise at theme parks, and for that matter even new attractions and rides are hot boilers, besides special holiday events and celebrity visits.

Following the new crop of successful theme parks, some new parks are joining the band wagon this year. Here is a look at the legacy of the old and the promises of the new with regard to their marketing and promotional strategies:

New attractions and rides

It is a known fact that in an existing theme park, adding a new ride or a new attraction can attract better footfalls even boost sale of merchandise on their launch. All of a sudden, the old theme park gets a new facelift and it becomes hot, albeit the euphoria may last for only one to two years, but nevertheless that can be capitalised.

• Legoland Star War attraction will open this month in Carlsbad, California which will have an area featuring scenes from the movie series built with Lego bricks, followed in June by a spinning Green lantern roller coaster at Six Flags Magic Mountain.
  
  
• Disney’s California Adventure plans to open an indoor ride based on the 1989 movie “The little Mermaid”. Knott’s Berry Farm in Buena Park also plans to launch a gondola ride dubbed Windseeker before July 4. Hollywood plans to open a 3D ride next year based on the 2007 blockbuster “Transformers”.
  
  
• Even the re-launch of an existing ride works. Six flags Magic Mountain recently re-launched its Superman rollercoaster, turning the passenger seats around so that riders face backward while they fly 415 feet in the air at 100 mph.
  
  
• Nickelodeon Land will open at Blackpool's Pleasure Beach. The park will have the characters, such as Spongebob Squarepants, Dora the Explorer and the Rugrats among others. Nickelodeon Land, a new six-acre area of the famous Pleasure Beach, is home to 12 rides. All 12 rides, from Spongebob's Splash Bash to the Rugrats Lost River, are now ready for the big launch. Licensed rides were the way forward and a good plan for the future. The park has a winning recipe with Ben 10 and Thomas. The park is already working with Cartoon Network on a Chowder-themed restaurant.
  
  
• Entertainment One and Paultons Park announced the opening of the Peppa Pig World theme park attraction in New Forrest, Hampshire, U.K., April 8.? Set across three and a half acres, Peppa Pig World features seven Peppa Pig themed rides. In addition to the rides, several key buildings featured in the show have been built to create the impression that children have stepped into Peppa’s world.
  
  

Merchandise: big money spinner

Souvenir sales are another big money spinner involved and contribute to the extent of 20 per cent in the overall revenue.

• The Carlsbad park plans to open a store called the Empire Emporium to sell hats, T-shirts and, of course, Lego kits to build Star Wars spaceships and characters. Merchandise spikes up sale but during opening of a new attraction or holiday celebration, it jumps. With the opening of Knott’s Berry farm’s new ride, the park plans to sell new T-shirts, hats, coffee mugs, wrist bands and key chains emblazoned with the ride’s name.
  
  
• Moreover, sale in merchandise can be spectacular if the new attractions celebrate a popular TV or movie character. As per a report, when Universal Studios in Orlando, FLa. opened its wizarding World of Harry Potter attraction last year, park attendance jumped 36 per cent and merchandise revenue doubled from the previous year to 48.7$ million for three months. The merchandise at the Harry Potter attraction includes souvenir magic wands, Slytherin scarves, Dumble steins and Voldemort key chains, among other items based on the blockbuster movie series.
  
  
• To support the opening of Peppa Pig Park, eOne will launch a “Peppa Pig Potato City” DVD, which features an episode set in a theme park and a behind the scenes activities on the making of Peppa Pig World. The DVD will hit stores in April 18. In addition, P2 Games will release a new Nintendo DS videogame Peppa Pig: Theme Park Fun March 25.
  
  

Special holiday events

Theme parks also capitalise on special holiday events.

• During Christmas, Universal Studios Hollywood decorates areas of the theme park like Whoville from the 2000 movie “How the Grinch Stole Christmas”. Throughout the park, the shops sell fuzzy Grinch hats and long-fingered Grinch gloves, among other Grinch related souvenirs.
  
  
• During Halloween, Disneyland routinely unveils a collection of new items such as Mickey Mouse ears decorated with Frankenstein bolts, Tinker Bell costumes and lanterns and candy decorated with Disney characters. As per a report, sales of Halloween jumped 20 per cent from 2006 to 2009.
  
  

Celebrities: the crowd pullers

Celebrities are big attraction and help increase footfalls.

• Forthcoming Nickelodeon Land that will open at Blackpool's Pleasure Beach will have Knight Rider, Baywatch and Britain's Got Talent star David Hasselhoff doing the honours of cutting the ribbon.

Martin Brochstein, SVP, Industry Relations and Information, LIMA, USA shares, “Licensed attractions are the future of theme parks. Eventually as more theme parks come, it’s good news for the licensing industry”.