Raiders of the Lost Licensing Cash

Written by: Michael Hickerson (SoSF Staff Journalist)

When Indiana Jones returns to the silver screen next summer, expect to see a lot of merchandise tie-ins for the popular film-frachise. Lucasfilm is currently negotiating and selling the rights to a plethora of Indy tie-ins, including everything from Lego sets to a line of M&M candies, according to the Wall Street Journal.

Merchandise tie-in lines are nothing new for Lucasfilm. Their “Star Wars” tie-in series has been one of the most successful in cinema history, passing even the popular Disney princess line in sales. However, when it comes to Indiana Jones, previous pushes weren’t as successful as the “Star Wars” line.

In the 80’s there were some limited tie-ins, such as t-shirts, posters and a line of toys that were not as successful as the “Star Wars” line. Because of this, Lucasfilms limited the tie-ins released for the Indy trilogy (this despite the fact that the original trilogy has grossed over $1 billion at the box-office) and has for the past several decades.

However, with Indy set to return to theaters and with built-in brand awarnesss, Lucasfilms hopes to captialize on audiences across all generational lines familiarity with Indiana Jones.

“We’re selling to both parents and children,” says Howard Roffman, president of Lucas Licensing.

“There’s no Indiana Jones stuff in the stores,” says Jim Makowski, owner of Action Toys, an online and catalog collectible-toys retailer, who says demand for the original action figures remains strong. He sells a handful of them on his Web site, priced anywhere from $25 to more than $85, and says nostalgic adults and their children, who have watched the movies on DVD, come looking for Indiana Jones toys.

When the movies first came out, the studio had to focus on getting the audience interested in the brand, which didn’t create the immediate, inherent frenzy that accompanied “Star Wars.” This time around, Lucas Licensing is banking on interest from both parents and children, and has put together a lineup ranging from action figures for children to high-end merchandise, such as resin sculptures for adult collectors.

But Lucas Licensing can’t fall back on the “Star Wars” cult-like obsession with “Indiana Jones.”

“We don’t have quite that same degree of fanaticism,” says Mr. Roffman. He contends that Indiana Jones has wider appeal, luring in action-adventure fans who might be turned off by science fiction. And then there is the hype of the movie itself, which will again star Mr. Ford, alongside newcomers to the franchise, Cate Blanchett and Shia LaBeouf, to bring back adult fans and attract a new generation.

Still, products will be available several weeks before the film even hits screens. A recognized brand such as “Indiana Jones” easily draws licensees — the companies that manufacture the licensed products. Even selective sectors, such as food and drink, want to be part of a new push for a storied brand.

“We usually look at franchises that are brands in themselves,” says Ryan Bowling, a public-relations manager for Mars Snackfood U.S., a division of Mars Inc. that makes M&M’s, which will also be part of the promotion.

In recent years, Mars has made deals with other movie series, including “Pirates of the Caribbean” and “Shrek.” Mr. Bowling says the company has big plans for “Indiana Jones,” mirroring the blitz of “Star Wars” with special packaging, in-store displays and advertising campaigns as part of its agreement with Lucas Licensing. Burger King Holdings Inc. is slated to promote “Indiana Jones” as well.

Toy companies, too, readily produce products for well-known properties, because often that merchandise can stand on its own, independent of the movie. When Lego took on “Star Wars” in 1999, it was the company’s first licensed product, says Michael McNally, brand relations director for Lego Systems Inc., the U.S. unit of Lego Group of Billund, Denmark. It sold so well — even in years when a movie wasn’t released — that the company has renewed its licensing agreement with Lucas through 2011.

Lego jumped at the chance to be a part of “Indiana Jones,” and plans to release two product lines next year, one series commemorating the original films and another promoting the new film. “We view ‘Indiana Jones’ the way we see ‘Star Wars,’ ” says Mr. McNally. “With or without a movie, the Lucas properties drive people into the toy aisle.”