Disney allowing character licensing

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Jul 12, 8:09 PM

Disney allowing character licensing

Fans can make custom T-shirts

GANNETT NEWS SERVICE

The images of Tinker Bell, Peg Leg Pete, Simba and other Walt Disney characters from the past are being given new life in a creative licensing deal. Also available will be the changing looks of perennial favorites Mickey Mouse and Donald Duck during the years.

Disney is opening its vault of artwork on DisneyInkShop.com, where people can use their favorite image to create customized apparel.

Visitors to the Web site can select from 2,500 character images and from an assortment of phrases associated with that character to create T-shirts, sweat shirts, nightshirts and other tops for $19 to $26 in sizes for adults, children and infants.

A marketing expert thinks this is smart online retailing by Disney.

"It is a low-cost way for Disney to give people a choice," said Erik Gordon, professor of marketing at Johns Hopkins University. "If there are a small number of people who like what Mickey looked like in the 'Steamboat Willie' days (the original Mickey Mouse cartoon from 1928) and want a shirt, the company doesn't have to make a lot of them, store them in warehouses or ship them to a lot of different stores around the country. It's a classic good use of the Web to aggregate demand."

Computer mouse pads and posters will be available in time for back-to-school season. Disney also plans to add accessories and other products. The move by Disney's consumer products division is a major effort to gain value from the Disney archive.

"Disney has always been protective of its artwork because of piracy concerns," said Patrick Haley, manager of new business development for the division. "But technology has allowed this."

Although Disney has a strong presence with licensed merchandise in mass-market retailers, the stores tend to avoid merchandise tied to older characters in favor of capitalizing on broader demand for items from a recent hit.

In addition to historical characters, DisneyInkShop.com hopes to generate sales from goods related to movies re-released on video and DVD, especially classics such as "Snow White."

Currently, about $15 billion in Disney products are sold each year. (About $1 billion in sales come from the Disney Store chain, which the company is in talks to sell to The Children's Place.)

Though Warner Bros. and DreamWorks are among Disney's fiercest competitors in animation, neither has opened the doors of its art treasury to sell customized merchandise tied to archival characters.

"A lot of companies are sitting on intellectual property, and it's not current. There are still people who remember the older stuff fondly, and this is a way of gathering stuff that's gathering dust to get income out of it," Gordon said.

Disney and embattled Chief Executive Officer Michael Eisner are under shareholder pressure for results.

Disney's net income nudged up 2.4 percent last year to $1.3 billion on sales of $27.1 billion.

Animated films from Disney's Studio Entertainment unit gained 10 percent in sales to $7.4 billion last year. The consumer products unit licenses the Walt Disney name, characters and visual and literary properties.
 

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