The report forecasts the global TV and movie merchandise market to grow at a CAGR of 8.53% during the period 2016-2020. To calculate the market size, we consider revenue generated from the sales of the following licensed merchandise:
A trend contributing to market growth is the emergence of 3D printing. 3D printers will likely become affordable, and consumers will be able to make their products in the coming years. Licensors are trying to protect their products and figuring out a way to legitimize do-it-yourself (DIY) merchandise, and derive revenue from it. Many licensors such as Sesame Workshop and Hasbro intend to offer licenses to 3D printing companies by providing appropriate assets and differentiating them from other licensed merchandise available in the market.
According to the report, a key growth driver is the success of blockbuster movies and TV shows. The success of movie franchises such as James Bond, Star Wars, and Marvel are accelerating the growth of the licensed merchandise market. Blockbusters like Frozen, Star Wars, and Despicable Me have generated more than $100 billion in retail sales globally. Many specialty stores also focus on TV shows such as Game of Thrones, Penny Dreadful, Breaking Bad, Big Bang Theory, and Friends.
Further, the report states that one challenge that could seriously hamper market growth is the rise in pirated and counterfeit products.