Toys Brands Expand into Mediums

The toy industry is undergoing a transformation, driven by the rapid rise of digital entertainment and evolving play patterns among children. Toy brands such as Mattel, Spin Master, Hasbro and LEGO are pioneering a new era of interactive experiences by blending traditional toys with digital games, apps and online platforms. This approach not only enhances how kids play but also expands the reach and appeal of brands, captivating players of all ages across multiple mediums. Through strategic licensing, digital partnerships and collaborations with streaming and video game platforms, toy companies are redefining how children engage with their favorite characters and franchises.

Spin Master’s PAW Patrol franchise is an example of how traditional toys are evolving. A beloved TV show and toy line, “PAW Patrol” has expanded into the digital realm with mobile games, interactive apps and even virtual reality (VR) experiences. This cross-platform engagement keeps children immersed in the “PAW Patrol” universe far beyond traditional play, encouraging them to experience the brand across screens, physical play and emerging virtual spaces.

Licensing Bridges Digital and Physical Worlds

Popular video games, streaming shows and online content have become valuable sources for toy companies seeking to expand their product lines and tap into existing fan bases. By licensing characters and concepts from digital worlds, toy companies create physical products that resonate with children who already love these characters online.

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Roblox has shown how digital entertainment can fuel toy sales. Jazwares, a leading toy partner, developed a line of Roblox-themed figures that lets players take their virtual experiences offline, creating a seamless integration between digital and physical play. Similarly, LEGO’s collab with “Minecraft” has redefined the concept of hybrid play, fostering creativity across dimensions.

Streaming Platforms as Licensing Incubators

Platforms like Netflix, Disney+ and Amazon Prime Video have more significant roles as incubators for new intellectual property (IP) in the toy industry. Rather than relying solely on well-known brands, toy companies are now leveraging these platforms to evaluate new content that, if successful, can be translated into toy lines. This strategy has proven especially effective with animated series, which resonate strongly with Gen Alpha and provide a solid foundation for toy extensions.  For example, Disney+  streams “Bluey,” a BBC-licensed IP that has become a consumer products juggernaut.

User-Generated Content Builds Licensing Trends

YouTube has become a driving force in the kids’ entertainment licensing sector. Companies like Moonbug Entertainment have capitalized on YouTube’s immense reach, transforming brands like “Blippi,” “CoComelon” and “Little Baby Bum” into major players in the preschool market. Where Disney and Nickelodeon once dominated, YouTube channels and their characters now command a significant portion of children’s entertainment, pushing licensing boundaries in unprecedented ways.

One of the most striking examples of this trend is “Skibidi Toilet,” a viral sensation that began as a brief YouTube video in 2023 and quickly evolved into an entertainment franchise. Bonkers Toys rapidly introduced “Skibidi Toilet”-themed merchandise that has been flying off the shelves at retailers like Walmart, underscoring how swiftly digital content can be transformed into real-world products. Film and TV adaptations, including collaborations with major Hollywood producers, have only increased the momentum of this viral franchise, exemplifying the vast potential of user-generated content in shaping modern licensing trends.

The Power of Licensing in a Digital Age

Data from the global research firm, Circana, underscores the importance of licensing in the modern toy industry, with licensed toys making up 32% of the total toy market in the first half of this year. Sales of licensed toys have risen by 6% compared to 2023, with popular franchises like Pokémon, Squishmallows, “Star Wars,” and Hot Wheels leading the charge. These statistics highlight licensing’s power to shape consumer demand and reinforce the success of hybrid play models.

As digital entertainment grows, the role of licensing will only become more crucial. In this new, speed-to-market era, the future of play lies at the intersection of digital and physical worlds, with licensing as the essential connector. By continuing to invest in licensing and digital partnerships, toy companies can stay ahead in an industry that is evolving faster than ever.

In a world where kids interact with digital media from an early age, the toy industry is adapting to meet the needs of a new generation. 

This story was taken from the December 2024 issue of License Global. Read the full issue here ...