The Business of Play

May 11, 2011

The Business of Play at HIT Entertainment

Women in Children’s Media v. Women in Toys

Battle Royale

There’s nothing like a good brawl to get the dander up. I couldn’t wait for this week’s event, where the famed Women in Children’s Media would finally take on their cross-town rivals, Women in Toys. This night promised to be an all-out, no-holds-barred sah-lamma-jamma throwdown.

With introductory speeches (of the trash-talking variety, surely) by WiCM’s El Presidente Sarah Wallendjack and WIT’s Joan “Licensing to Thrill” Luks on the schedule, I could hardly wait for the hurricane of high-flying, bone-crushing action to touch down in the caged ring (at HIT Entertainment).

People: let’s get ready to ruuuuuuuumble!!!!

Nope.

For those of you who thought you missed a bloody deathmatch, let me assure you, you didn’t. This year’s WICM v. WIT Battle Royale was incredibly tame. There were ZERO piledrivers, and not a single taunting statement was rebutted by a metal chair.

Instead we were privy to an admittedly fascinating panel discussion about the business of play. Our pacifist factions recruited four very accomplished panelists. Together, they held forth on the changing perspectives that drive the toy industry.

The Panelists

• Samantha Freeman – Founder, Executive Producer, and General Manager of Out of the Blue Enterprises. Favorite toy: the frenzy game with the silver ball.
• Barbara Isenberg – President of the North American Bear Company. Favorite toy: the Ginny doll by Vogue.
• Jeff Gomez – President and CEO of Starlight Runner Entertainment. Favorite toy: the Strange Change Machine.
• Richard Gottleib – CEO of USA Toy Experts. Favorite toy:  a wooden thingamajig that sounded like “Barbacoa” when he said it. It was hard to hear where I was sitting.

The Information

These sages brought the wisdom of four diverse and successful careers. There was a lot to learn, so be warned: this entry is a long one.

It’s a Tough Business

No way!

There’s no doubt that the toy business is a tough industry. It’s difficult to predict kids’ preferences, and stiff competition knocks plenty of participants out. The mega-hits are few and far between, and it’s hard to capture a large audience with so much competitive content out there.

Additionally, social networks and the emancipated flow of information have increased buyer pre-sale knowledge of a toy; no longer can a product get by through marketing genius alone.

Even when a toy survives the first round on the market, momentum can change course quickly. The recent Scottsdale, AZ Toy Fair disclosed that a fourth of all toys purchased never know the joy of play. So the dissipation of interest can even occur after sale and before a full connection is made.

So how does a toy break through all of this? What makes a hit? The panel quickly pointed out that it is hard to draw lessons from the world-sweeping fads, the “act of God” sensations. One must be careful to realize there is middle ground between the hula hoop and the plastic piece of crap you mortgaged your life to produce. There are modest successes, and we can learn from those.

Understanding the Audience

Monchichi would rather discuss adorable toys.

Most people think toys are meant to appeal to children. But an understanding of who is making the purchasing decisions is essential. In Barbara’s specialty plush toy and gift business, for example, shopping adults make the hits. Marketing toward this segment of her market is an important component of her business strategy.

Moreover, the toy-buying public is more diverse than most people acknowledge. While 82% of toys sold are meant for children, 18% of a $28 billion industry is no small segment. These adults—including the hardcore collectors and the casual appreciators—flexed their purchasing power to build the Marvel and Barbie brand empires. And they continue to nurture their favorites, so a wise developer does not ignore their influence.

Aspirational Connection

This was one of my favorite points. Jeff shared his thoughts on why certain toys gain popularity while others mysteriously flop. There is a direct relationship between the essence of a popular toy and what a child aspires to be. If a toy can reach a child on an aspirational level—channeling a child’s desire to nurture, to master, to protect, to be silly, etc.—then the toy has a shot at forming a powerful connection. This struck me as a very interesting, and incredibly insightful, way of understanding how kids engage their favorite playthings. Even more so, I believe Jeff’s point captured a fundamental but elusive element of play itself.

Oh no, I couldn’t possibly eat another marble.

Transmedia and the Dominant Platform

We’ve all seen the hyper-licensing of the giant properties on toys, clothes, television, interactive, etc. The big icon properties are famous for their transmedia presence. But transmedia has taken hold in even the smallest toy sub-industries. Even in Barbara’s specialty business, where her plush toys have little relationship with television or film properties, transmedia is an important strategic consideration. She builds character familiarity through books before introducing their plush counterparts.

But here is where people err. Even though transmedia is the word, a property still needs a dominant platform. A driving, dominant platform is necessary to build a community of believers.

The Enduring Importance of Story

While transmedia can guide business development, transmedia itself can’t be the foundation of a property. One panelist emphatically asserted that story is still the starting point. Even if the property at stake is a toy, its story should lead the way. The story, and an understanding of the nature of the property, should drive platform decisions.

If you know anyone who had all the pieces to this game, PLEASE call me.

Story builds the connection between a child (or adult) and a toy, but the art is knowing where to stop telling the story and let the child take over. The goal is to create a synergy of narrative, a way to spark the child’s own storytelling ability as rooted in the toy.

The panelists expressed faith in kids’ ability to do this. Although children are now craving bigger, richer play experiences, children are still completely attuned to narrative. Richard said it best: the greatest Star Wars story ever told was probably created by a six-year-old in her backyard.  I loved this idea, and I loved how much confidence the panelists had in their young audiences to complete the storytelling loop.

All who obey Lord Ruxpin shall be spared in The Reckoning.

Conclusion

Turns out this event wasn’t a fight in any sense. I draw two lessons: I should probably start reading the event descriptions more carefully, and I should probably stop using WiCM events as outlets for my testosterone (though the upcoming visit to the American Girl Place might do the trick — July 14!). But the good news was that this night was another hit. Thanks to the innovative and unique perspectives of its panelists, this week’s event gave attendees a new way of looking at things. If you missed this one, you missed one of WiCM’s best. Make sure you don’t miss the next one.

See you soon…

Lucas