Kids channel Sony YAY! steps up licensing, merchandising
2 min read . Updated: 15 Mar 2023, 01:01 AM IST
PremiumSony YAY! will launch products across categories such as apparel, footwear and bean bags, featuring characters such as Oggy, Honey Bunny and Naruto in partnership with companies such as The Souled Store.
New Delhi: Sony YAY!, the kids channel owned by Sony Pictures Networks India, is working to expand licensing and merchandising of its own intellectual properties (IPs), as well as those it is acquiring by tying up with American and Japanese companies, a top company executive said.
Sony YAY! will launch products across categories such as apparel, footwear and bean bags, featuring characters such as Oggy, Honey Bunny and Naruto in partnership with companies such as The Souled Store. Even in its nascent stage, Sony is aware of the challenges of thriving piracy in the sector.
“This is a big shift for us because our core business is broadcast and the first touchpoint for our kids vertical is television. However, we’ve realized that while TV is a low-cost medium to reach out to audiences, it isn’t necessarily consumed by all age groups or kids," Leena Lele Dutta, business head, Sony YAY! said in an interview.
Dutta added that IPs have a shelf life outside of television, and licensing and merchandising is one of the easiest revenue streams to branch out into when the company owns its properties.
The channel began integrating some product licensing with free commercial time (FCT) partners two years ago, and it has now evolved into full dialogues to represent other brands for the L&M business independently.
Dutta said the company is evaluating IPs in the US and Japan, including firms specializing in anime, or those with significant a YouTube presence.
Sony YAY! is looking at Kicko & Super Speedo and Honey Bunny franchise games to be launched with Zapak, Oggy, Honey Bunny, Kicko & Super Speedo, Guru Aur Bhole-themed bean bags and wardrobe with Comfy Bean Bag, Naruto-themed SKUs (stock keeping units) with The Souled Store, to be sold online as well as offline, among others. The company is also in conversations with various brands owned by Reliance Industries to license products across categories.
To be sure, the licensing and merchandise market in India remains niche, with the likes of Walt Disney leading the space thanks to IPs such as Marvel (Iron Man, Captain America and Avengers), Lucas Films (Star Wars), Pixar (Cars) and Disney (The Jungle Book). Yet, there is a huge illegal market running parallel to licensed brands.
Several entertainment properties, including film and cricket, have attempted the L&M model with little success, with the category bringing in less than 2% of overall revenues despite the fan following for the celebrities involved. Pricing remains key and customer willingness to pay high rates is usually low, according to media industry experts.
“Piracy is a challenge we can neither ignore nor do anything about. We’ve just begun our journey in the market, but we see great potential in it. It’s also a low-hanging fruit for us because we aren’t investing anything, only associating with vendors on a revenue-sharing model. There will be a dedicated push on this from us this coming fiscal," Dutta said.