Looking for Warner to co-produce movies and publish children’s books… Funko is cultivating original IP and expanding its merchandise category, hoping for more stable and sustained growth.
Editor’s note: This article is from WeChat public number “Sanwen Entertainment” (ID: hi3wyu) , author: Dkphhh.
There is no popular movie or animation broadcast in the third quarter, and Funko’s best-selling IP doesn’t look so popular. Looking for Warner to co-produce movies and publish children’s books… They are cultivating original IP and expanding product categories, hoping for more stable and sustained growth.
Funko, which sells 100 million dolls a year, recently released its third-quarter earnings.
The financial report shows that as of September 30, Funko’s net sales were 223 million US dollars, up 26% from the same period last year, and net profit was nearly 15.54 million US dollars, an increase of 92%.
Funko is a derivative + tide play company known as the square doll Pop! Vinyl. Our well-known IPs, such as Marvel, DC, and Harry Potter, have teamed up with Funko to launch square-headed dolls.
Last year, Funko sold $686 million in derivatives, the vast majority of which were square dolls for about $10.
Funko is authorized to cover all areas of IP
Funko defines its business model as “fan economy,” and they will launch derivatives for everything that has fans. Now, Funko has been authorized to have more than 1,100 IP addresses, covering film and video animation IP, games.And even sports stars and entertainment stars.
Their new store will officially open in Hollywood on November 18. The location of this store also shows that they have jumped out of the general IP derivatives range and entered the trend culture field. Therefore, Funko sells not a general derivative, it has a tidal play attribute.
(More about this company, you can refer to Sanwen Entertainment’s past push Derivatives for Marvel and DC, earning 14.85 million yuan a day, how does Funko do it? Got it?)
IP derivative dolls sold $177 million in three months, but Funko wants to sell more
The earnings report said that Funko’s third-quarter sales growth was mainly due to the increase in the number of effective IP(active properties) and product categories.
In the third quarter, the number of effective IP increased by 13.4% year-on-year to 627, and the average sales per effective IP increased by 11.3%.
The so-called effective IP refers to the IP of the product launched this quarter. The reason why this concept is because IP is often seasonal, and it is worth noting that the IP of the product is not so much.
In the third quarter, Funko’s best-selling IP was Harry Potter, and sales of related products accounted for 9% of total revenue. The top 10 IPs cover the fields of games, movies, animations and so on.
Harry Potter is also an Evergreen IP, which is an IP that is not affected by time and is sold for a long time and has a stable consumer base. Evergreen IP has been the main sales force of Funko, the third quarter, Evergreen IP