Theme Park IP's

Dear Mr. Theme Park:

I run a mid-sized amusement park here in the USA.  I have watched our industry during the last five years continue to “buy up” intellectual property of all types………super heroes, cartoon characters, and movie series like Hunger Games.  How important are IPs to a park?  And, how do you go about getting one for your park?

James D.

James, you are correct.  Our industry has been in an IP frenzy for about the last ten years.  A lot of the activity was “sparked” by the Middle Eastern countries who were attempting to enter the theme park arena in the mid-2000s.  This market was attempting to buy or tie up almost every IP that was known.  This frenzy also included joining forces with many USA operators.  However, due to the economic turndown, almost all of the parks planned during that timeframe did not come to pass.  

In addition, too many parks were planned.  There was not enough infrastructure to support the announced parks, not to mention far too little tourism and local population.  As an example at that time, Dubai was a city/country of only 1.2 million people, with a large portion of that population being from the expatriate work force.  Several parks were built, Ferrari World being the largest.  But, it suffered – not meeting attendance projections – and went through a tremendous number of management turnovers.  As great as the Ferrari name is, it did not succeed in making the park a success.  It still operates, but labors today under the original overcapitalization invested at start-up.

I take the time to point this period in our industry’s history out, because the same IP frenzy has once again ignited in the Middle East -- with layers upon layers of the parks being planned and constructed utilizing known IPs and park operators.  Will all of them be successful?  We shall see during the next five years.  However, it is fair to say that the IP line up is staggering.  From the USA to Europe and Asia, IPs from all spectrums are “in play.”

James, you need to study whether or not you really need IP assistance in your park.  Also, can you afford a fee structure for well known IP?  Character and IP usage in a park can have a major impact at the front gate.  As an example, when Bob Pittman was in charge of Six Flags, he was responsible for finalizing the Warner Bros / DC Comics characters throughout the Six Flags parks.  The introduction of these properties ratcheted the Six Flags parks up to a level of attendance, revenues, and profits they had never experienced in their history.  Those characters continue to work extremely well for Six Flags and have for over 20 years.  IP worked.

Think carefully about your park’s contents and needs.  What type of IP would work best for you?  A children’s IP, teen oriented IP, or one that speaks to the entire family?  What are the real objectives and goals for considering IP usage?  Is it a marketing driver, is it for entertainment or product association, or is it to create a high level face in the park to market, advertise, and meet and greet guests?  Whatever the primary reason, keep in mind there are basic fee structures which include initiation fees, annual licensing fees, and merchandise royalty fees. All of these can be negotiated with the owner/creator.  James, also keep in mind that IP usage needs to be constantly visited to ensure you, the park operator, are getting maximum exposure and usage.  I have seen through the years while working with many different IPs that the more you put into it, the more you receive in benefit.

Please feel free to call us at 513-381-6131.  We have great experience and knowledge in sourcing, selecting, and negotiating amusement and theme park IP programs.