The focus of COVID-19’s impact on the entertainment industry has been on the theatrical delays of tentpole projects, includingWonder Woman 1984and the 25thJames Bondfilm, and the consequences for exhibitors. However, the licensing deals tied to these projects have also been impacted by the pandemic and now studio executives have opened up about how they’ve adapted to the health crisis.
As COVID-19 began to spread across the world at an increasing rate in March, studio executives began taking calls with concerned licensees including Mattel, Hasbro, Nike, andOld Navy. While both the studios and their product partners initially hoped to simply ship their products out of China, where the virus originated, the strategies of both parties had to change completely when it became evident that movie theaters would not be open for the foreseeable future and feature films would have to be postponed.
RELATED:Spine Surgeon Rates Injuries in Batman, Spider-Man, and Doctor Strange
MGM’s newest James Bond film,No Time to Die, was originally scheduled to debut in April 2020 before the pandemic prompted the studio to postpone its release to November. Companies including Heineken beer, Omega watches, and automakers Land Rover and Aston Martin had been preparing to spend millions in ad buys and live activations around the initial release date. During an interview with Variety, an MGM insider explained that the final decision to postponeNo Time to Diewas made in March partly to provide transparency to its marketing partners. “We did so very keenly to get ahead of any spending our partners would put into the marketplace. They recognized the original release wasn’t sustainable, and it was relatively easy to move. Hard goods are a different story, and much more difficult,” said the individual.No Time to Diehas since beenpostponed for a second timefrom November to April 2021.
In April, Universal Pictures pushed back the release date ofMinions: The Rise of Grubya year to July 2021, forcing the studio to devise a plan to make the launch of a 90-piece collector toy set with McDonald’s and other deals relevant despite the lack of the new film playing in theaters. Initiatives taken to resolve the issue included a Minions PSA with the World Health Organization to honor frontline workers, network airings of the firstMinionsfilm on NBC and themed movie nights with international broadcasting partners. Multiple studio executives informed Variety that partners like McDonald’s aren’t able to postpone their tie-in products because the food chain must continue moving merchandise on account of not having the same storage capacity as retailers such as Target and Walmart.
Not every licensee has been able to delay the launch of its products to coincide with the premiere of a Hollywood blockbuster. For example, Mattel had to release its line ofWonder Wonder 1984dollswithout the DC film, which has been postponed three times on account of the pandemic.
The report adds that the licensing industry is on course for a 21% decrease in revenue in 2020, according to a study in an upcoming white paper from License Global. As result, licensing businesses are joining the growing list of companies that are turning tostreaming content for relief amid the pandemic.
MORE:What to Do With James Bond Once Daniel Craig Is Gone
