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I knew Disney (NYSE: DIS) was an awesome licensor of its content. Still, I was pretty happy when I read the following Hollywood Reporter piece about the Mouse and its success at growing retail sales of its merchandise. Disney is looking at revenues of $30 billion at retail channels based on products bearing its logo and characters to be booked by the end of its current fiscal year. That would represent a magical double-digit growth rate of 12% if the figure is reached.

Merchandise sales based on characters and intellectual properties owned by companies such as Time Warner (NYSE: TWX), which licenses heroes such as Batman, and Viacom's (NYSE: VIA) Nickelodeon, which has had great success with SpongeBob SquarePants, don't compare.

The article rightfully reminds readers that the total amount generated in retail sales is only an indication of how seemingly popular a company's brands are in the marketplace. It does not point to the amount of revenues or profit a company books on the sales (Disney will only receive a small percentage of those sales, perhaps between 5% and 15%).

The important thing I take away from this as a shareholder is that Disney is doing a reasonably good job of milking its franchises. As one might expect, the usual suspects were cited as drivers: Hannah Montana, High School Musical, the Jonas Brothers music project, and Disney Princesses are doing the heavy lifting for Disney's consumer-products division, along with a property that continues to surprise me: Cars. Amazing that the latter remains a popular seller in the boys category.

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Disney is a licensing king originally appeared on BloggingStocks on Wed, 11 Jun 2008 14:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>DISDisneyDisney ChannelDisneyChannelHannah MontanaHannahMontanaHigh School MusicalHighSchoolMusicalinthenewsJonas BrothersJonasBrotherslicensingMiley CyrusMileyCyrusretail merchandise salesRetailMerchandiseSalesTime WarnerTimeWarnerTWXVIAViacomWed, 11 Jun 2008 14:45:00 EST