Making Money From Your IP – Lessons in Childrens Entertainment Tim Collins DC Thomson & Co. 2 September 2010

Me Copyright Promotions – Licensing Agency Universal Studios – Film HIT Entertainment – Childrens TV DreamWorks – Film Endemol – TV formats/reality DC Thomson – Publishing Its all about brand development 2

Why exploit your IP? Entertain and educate Making money - recoup investment - but a long tail! Protect your IP from others 3

Children Pre-school Primary boys and girls Tweens Teens? 4

Boys: their changing media world Television 2.7 sets at home TV in bedroom Satellite cable at home Books – 11.7 books since xmas Cinema – 2.4 films since xmas – 3 of top 10 family films Radio – Listen in bedroom Magazines/Comics – 1.8 per month – Self & parental purchase – 3 out top 10 licenses – Beano market leader Video Games – 1.3 hrs per day – On own, in bedroom Computers – Family computer 1999 Television 3.0 sets at home Satellite cable in bedroom TV interactive services Weekday hours down, weekend up Cartoon Network out rates CBBC TV on demand (28%) Books – 12.3 books since xmas – Film TV characters Cinema – Increased visits – 5 of top 10 family films Magazines/Comics – 1.8 per month – Parental purchase – 7 out top 10 licenses – Dr Who market leader (Beano #3 ) Mobiles – 42% ownership – Texting, games camera – Acquisition age 8/9 Video Games – 2.0 hr per day – Wii, PS2, DS dominating – Bedroom, Lounge, Online, on the move – With friends, brother, parents Computers – own laptop, broadband wifi 2009 Online At home, in bedroom (13.5%) 2.57 hours per week Youtube Homework, games, kids sites, downloading TV Channel/programme sites Source: YTGI 1999, 2009 All data based on minimum 25% penetration 5

Girls: their changing media world Television 2.7 sets at home TV in bedroom Satellite cable at home Books – 13.7 books since xmas Cinema – 2.5 films since xmas – 3 of top 10 family films Radio – Listen in bedroom Magazines/Comics – 1.8 per month – Self & parental purchase – 3 out top 10 licenses – Girl Talk market leader Video Games – 0.9 hrs per day – On own, siblings, friends Computers – Family computer 1999 Television 2.9 sets at home Satellite cable in bedroom TV interactive services Viewing hours down CBBC and Nickleodeon TV on demand (27%) Books – 14.1 books since xmas – Film TV characters, authors Cinema – Increased visits – 5 of top 10 family films Magazines/Comics – 1.8 per month – Parental purchase – 7 out top 10 licenses – Girl Talk market leader (Bratz #2 ) Mobiles – 47% ownership – Texting, camera – Acquisition age 7/8/9 Video Games – 1.0 hr per day – DS dominating – Bedroom, Lounge, Online, on the move – With friends, brother, parents Computers – own laptop, broadband wifi 2009 Online At home, in bedroom (13.7%) 2.61 hours per week Disney, MSN Homework, games, kids sites, TV Channel/programme sites Source: YTGI 1999, 2009 All data based on minimum 25% penetration 6

Business model - exploitation Is the IP strong enough and/or relevant ? Legal protection 7

The launch platform The original idea & medium - Film, TV, Book, video game, ringtone character, ad campaign… How strong is it? 8

The next stage… Wider exposure…Film, TV, on-line Investment can be substantial TV animation $250k/half hour 26 episodes Movies – $50-100m Invest directly or license others, but can loose share of copyright and control Rights related to value of the original IP and investment required by 3 rd party – upside with those taking the risk 9

Once platform has been established… Exploitation phase – merchandise, publishing, DVD, music i.e. Consumer Products You or a third party…? Probably 90% of new TV projects dont recoup 10

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The licensing model… As IP owner – focus on brand and the content vision Work with specialist licensees – hire experienced staff or use an agent Deals carry an advance and MG – usually Control & approve products and marketing by third parties Retail is everything 13

Brand development Have a plan – it will evolve as will the brand Refresh and listen to consumers and retail customers 14

only 13 shows sold to CBBC Pre-selling to key partners from summer 1998 TV launch April 1999 – video and small publishing program Second series Sept 1999, more video and books Small range of merchandise Nov on - more TV, DVD specials, consumer products, live show, international expansion… 2001/2 – Brand 90% of all CP and video revenue – 2/3 of total company turnover 2009 – Bob is 10! 15

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Britains #1 comic brand – multi-generational appeal – sub brands & characters Kids and adult branded products Media Weekly comic – 45k copies weekly #1 Annual – 300k each Xmas TV – 3 series (BBC) Consumer Products – 25 years Live show Digital – Web and digital archive 17

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2011 is their 75 th anniversary. DCT has a strategy to develop the Broons Media platform Consumer products & publishing Promotional tie-ins Direct to consumer Long-term strategy – UK and overseas 19