The Wheel of Value: FremantleMedia's mantra
It’s FremantleMedia’s successful mantra when licensing programs – with 360-degree, multi-spoke coverage of a brand. But should ‘The Wheel of Value’ influence the way film and TV creatives produce the original content? Georgina Pearson finds out.
Taking an idea for a TV series and turning it into a successful ratings winner is one thing, but taking that series and evolving it into a thriving global entertainment franchise is a whole new level of expertise.
As consumer demand rapidly increases, the scope for brand expansion is widening. Companies are more than ever optioning shows based on their license-ability – a show’s success is now dependent on its potential market value beyond the small screen. And with fruitful brands such as The Biggest Loser, Australian Idol, MasterChef and Grand Designs Australia gaining mass audience appeal, Australian production companies are stepping up for their slice of the licensing pie.
Licensing has long been cemented in the world of children’s toys. FremantleMedia Enterprises Chief Executive Officer Jon Penn said: “Toys are at the centre of the universe for licensing. You don’t realise how much of that toy aisle is stocked with licensed product. It’s Bob the Builder, Spiderman, Star Wars.” However, in the last decade licensing within the reality and lifestyle television realm has grown exponentially to reach the adult market.
Although a seemingly straightforward transition, licensing a brand is actually a concise mix of cross-platform marketing – and FremantleMedia Enterprises has the recipe for marketability down pat. Responsible for the meteoric success of the MasterChef Australia brand, it boasts an impressive portfolio including Grand Designs Australia and The Biggest Loser.
Fremantle’s licensing success has been due – in large part – to its ‘wheel of value’. Penn explained, “I would characterise that as our business model. It’s pretty simple. Essentially it’s a piece of intellectual property, usually a big entertainment brand, which we see as the centre of the universe. Out of that springs a whole lot of commercial activities that we can do, things like consumer product licensing etc. We look to create, manage and extend those activities as much as we can and where it makes sense for the property – things like consumer products sponsorship, gaming, TV tape sales, format sales, interactive mobile and websites. We would look to extend the brand around the wheel of value in as many ways as possible. And sometimes it is only two or three; sometimes it’s half a dozen or more. We’ll be looking to create Grand Designs into a magazine, coffee table books and design-related books.”
Find a brand’s core value
Penn added that the avenues explored are different for every brand. “There are also places we might go with a brand extension that isn’t the right fit for Grand Designs but could be for another property. Each one is different.” Pen also said that a vital part of licensing is pushing a brand through international channels, as well as gaining advertisers. “Another integral spoke on the wheel is finished programming: Grand Designs Australia is a series which we make here, and then through our Enterprises TV sales team, in other parts of the world, we license that TV series to international broadcasters. Also important is licensing brands to advertisers which is essentially advertisers sponsoring the property off air – for example if you go into a Coles you will see all of the MasterChef brand paraphernalia.”
The MasterChef brand, arguably Fremantle’s biggest triumph, succeeded because of careful consideration of its core value. Penn told Encore it is essential to first establish the epitome of the brand. “When we get a new property we sit down with the licensing team and we work out what we think the brand represents. What does it actually mean to people? So we come up with what the essence of the brand is in one word, for MasterChef it was “foodie” – which centres around being really interested in food and cooking. We take that, and for every avenue we explore, we ask is this relevant to a foodie? If you always do that then you can’t really go wrong.” This key value naturally steers the licensing process, Penn explained. “It helps you eliminate things. So when people come to us and want to do a t-shirt we go, ‘no way’. Why do you need to wear the MasterChef brand on a t-shirt? What’s that got to do with being a foodie? In the case of publishing, we were looking for a cook book that appealed to foodies, we were looking for cookware that appealed to foodies, and this will steer us away from cheap and cheerful pots and pans because they’re not going to be good enough for more sophisticated cooking activity.” Penn added that poor choice of brand affiliation could cost the franchise dearly. “There’s nothing worse than putting a product out which is wrong for the brand. You will fail and it’s better to not do it because that has a damaging effect on the rest of the licensing program. You cannot sustain branding failures because they will come back to bite and they will ultimately have a negative effect on the property.”
Make licensing a priority
The acquisition and building of the MasterChef brand has had a slow but steady ripple effect on both the production and licensing divisions within Fremantle, changing the selection process of new shows which are now gradually being analysed for possible brand extensions. However, Penn told Encore it’s a still a challenge to bring in the right sort of intellectual properties. “It’s one of the key issues facing both the production and licensing divisions of the company today. FremantleMedia Enterprises has this formidable infrastructure now where we have over 250 staff working in three regional locations with specialists looking at how to access the right sort of properties with the ability to be extended in multiple ways. But one of the biggest issues in the company, not in a negative sense, is to work out how to influence our production companies to turn out the right sort properties. [And] we would argue that production companies should try to prioritise the sorts of property that have extension possibility. They are thinking more seriously when they are developing new shows. Without a doubt.”
Does this mean that every burgeoning writer or producer needs to re-assess their direction? It would be easy to assume that as the market floods with multi-platform licensable shows heralding brand advertising every which way, demand would decrease to a point where the thought of a clean cut TV-platform-only program could possibly be quite appealing. But Penn disagrees and argues that the more channels your show is promoted through the better return it will have. “Absolutely. I would say yes. It makes sense not just commercially in terms of the longevity of the property but it also makes sense from a marketing perspective. If your TV property is visible on multiple platforms it’s going to have a larger reach. So if you have an idea for a show you need to consider what it could be on a mobile, iPad, online game, and product. And if it seems to tick those boxes then it’s probably got a chance of being a long-term property.”
But to what degree must an aspiring writer or producer go? Should the focus to create the perfect brand package compromise on the content of the production? While Penn believes license-ability should always be a priority – he says there is no right or wrong. “There’s no hard and fast rule, certain elements make great films and TV shows while [some go further] with amazing characters that can be extended and live on forever. I guess Toy Story is a perfect example, there’s nothing being compromised in the production of that story. It just all works together. Then again, I think you can have a great film that isn’t merchandisable, but is a great franchise and it delivers.”
Ultimately, says Penn: “The kids’ space for licensing is still certainly the sweet spot – because kids love licensed product. It’s very simple, they see something on TV or in a film and they want to have that. Toys are a big business in general – but licensed toys are even bigger, that is the holy grail of licensing property.”
Nevertheless, now that licensing has gone beyond action figures and kids’ backpacks, to reach an adult market with great success and to extend a program’s brand beyond the screen, the ‘wheel of value’ will keep turning.
