Does holding off on merch contracts make sense?

[ManaMinori 4,149]

I read somewhere that full sized funkos and pops have been held off due to Hasbro choosing to suspend liscensing, until the FiM movie releases. Now, as irate as I am about background ponies- some of which who are nowhere near as popular as as certain former student of Sunbutt's (looking at you, Cheese, Maude, Spitfire, Big Mac) do you guys think this makes any sort of sense, holding off on renewing pony licences with Funko, until the movie release (so say rumors), when they could be producing new ponies and making money in the meantime?

[Jeric 46,884]

It makes a decent amount of sense to restrict licensing deals until value and equity are at its most favorable, yes. The closure it gets to the film, the more lucrative the share percentage will be for Hasbro.

 

The time off allows a full evaluation of the licensing portfolio, penetration rates, and can prevent exposure fatigue if you subscribe to that theory.

 

Though Hasbro normally has never cared about oversaturation, so I doubt that last thing I mentioned is their motivation. They will never admit it even if it was, because the implication to investors (particularly investors not trained or experienced in brand merchandising) is a lack of brand confidence. Not much of a distinction is made between cyclical vs softening sales in the industry if you have a well known brand.

 

Anyway, it does make sense for Hasbro and retailers.

[ManaMinori 4,149]

It makes a decent amount of sense to restrict licensing deals until value and equity are at its most favorable, yes. The closure it gets to the film, the more lucrative the share percentage will be for Hasbro.

The time off allows a full evaluation of the licensing portfolio, penetration rates, and can prevent exposure fatigue if you subscribe to that theory.

Though Hasbro normally has never cared about oversaturation, so I doubt that last thing I mentioned is their motivation. They will never admit it even if it was, because the implication to investors (particularly investors not trained or experienced in brand merchandising) is a lack of brand confidence. Not much of a distinction is made between cyclical vs softening sales in the industry if you have a well known brand.

Anyway, it does make sense for Hasbro and retailers.

but fat lotta good it would do if they renew licensing during the movie premiere, only to end the series at season 7, if that is, in fact, what they intend to do. (Unless merchandise continues after, until the start of g5), if they do decide to end with the movie and cut the show.

[Rainblow H. Ash 5,091]

Solid answer from Jeric, but where did you read this? Sources?