Page 109 - The Disneyization of Society

THE DISNEYIZATION OF SOCIETY

91
the middle of 2002. The BBC’s Teletubbies, which had been a massive merchandising
success in 1998 and 1999, saw a large fall in profits in 2001, just three years later. 92
100 Even Elvis merchandise has shown signs of falling away, largely due to changing
demographics, although fashion may also have a role in the process. 93

Conclusion

As the reflections in the previous section suggest, merchandising is not a licence
to print money. There are numerous pitfalls and risks in the whole process. For
one thing, it is difficult for the owners of copyright to know how far the franchise
should be extended. Second, it is difficult for licensees to know which images and
logos to pursue and on which products. While they can be cautious and opt for
established images, like Harry Potter which was already well established through
the series of books, or television series that have done well, fashions change and
they may find they end up with stock they cannot sell but still have to pay the
licensing fees for the images and logos. Third, the outlets that carry the mer-
chandise are likely to be uncertain about how much stock to carry because, for the
same reason as the licensees, there are few certainties.
On the other hand, merchandising is a hugely profitable area if the participants
get their calculations right. What is striking about merchandising is that it has in
a sense ceased being icing on the cake and has become a major ingredient of the
cake in its own right. Increasingly, films, television series and themed restaurant
chains are developed with an eye firmly on their merchandising potential.
Merchandising is no longer just an added benefit. Disney has shown the way in
this regard but few can match its synergy. When others have tried they have rarely
fared as well. The closure of many Warner Bros. Studio Stores and of two Hanna-
Barbera stores in the Los Angeles area soon after opening in 1990, 94 are illustra-
tions of Disney’s unique position, as well as an indication of the fragile nature of
a merchandising strategy. So too are the Viacom stores that were planned as out-
lets for merchandising relating to the company’s holdings. However, by early
2003 there were clear indications that the Disney Stores were under-performing
as well.
Merchandising is closely bound up with hybrid consumption, because in
many hybrid consumption environments, such as theme parks and themed
restaurants, licensed merchandise is one of the major items for sale. However, the
two should not be fused, because there is a distinctive cluster of merchandising
activities that we have seen in this chapter, most notably in connection with
films and television series. For their part, the merchandisers have to tread a very
careful line between appealing to children, probably the most influential target
group, and disillusioning the parents through creating children’s ‘must-haves’
that are likely to have as limited a shelf life in their bedrooms as in the stores.