From Gokuldham to Dholakpur: TMKOC & Chhota Bheem’s Multi-Crore Licensing Play 💰

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Happy Tuesday.

Today we're covering:

Character licensing just hit $384 million across emerging markets, and most people have no idea this industry even exists.

Industry sources confirm what insiders have been tracking: India's domestic licensing industry is now valued at $480M, with 80% driven by characters and entertainment IPs... roughly $385M in annual revenue.

To put this in global context: the entertainment/characters segment globally grew 6.9% to reach $147.6 billion in 2023, with entertainment/characters representing the largest property type at 40.5% share of the global licensing market.

What makes India interesting is the concentration. 

While global markets are diversified across multiple IP categories, Indian licensing is heavily character-focused which is creating opportunities for studios that understand this dynamic.

Green Gold Animation's licensing operation breaks down into several revenue streams that industry sources describe as "the template" for Indian character monetization:

Toy & Consumer Products: 35-40% of licensing revenue comes from traditional toy partnerships, with deals structured as 8-12% royalty on net sales plus guaranteed minimums of $240K-600K annually for major categories.

Apparel & Fashion: 25-30% revenue share from clothing lines, with partners like Pantaloons and various regional retailers. Deal structures typically include $60K-$240K upfront advances against 6-10% royalties.

Digital & Gaming: Growing segment representing 15-20% of licensing revenue, including mobile games, educational apps, and digital content extensions.

Food & FMCG: Emerging category with snack foods, beverages, and personal care products. Early deals reportedly structured at 5-8% royalties with $30K-$120K minimum guarantees.

Neela Film Productions reported $23M revenue in FY22, with a split that's rewriting TV economics:

• 60% from traditional TV broadcasting
• 40% from digital businesses (games, apps, merchandise, IP licensing)

Note: No publicly available data is available since FY22 for Neela Film Productions or TMKOC’s consolidated revenue.

Industry sources reveal TMKOC's digital arm allocates $3 million annually across:

• User acquisition for mobile games ($1–1.2M)
• App development and maintenance ($600K–850K) 
• Merchandise and licensing operations ($480K–720K)
• Web3 and emerging tech experiments ($240K–360K)
• Marketing and brand partnerships ($480K–600K)

Game Performance Metrics:

'Run Jetha Run' mobile game achieved 1 million+ downloads, generating estimated $360K–$600K in its first year through in-app purchases and advertising revenue.

Legal Enforcement Investment: 

Delhi High Court injunctions against unauthorized merchandise and AI/deepfake content indicate significant legal spend, sources estimate $60K–$120K annually on IP protection.

UK's Entertainment One (now Hasbro)

Toy Licensing: 45% of total licensing revenue

- Major partners: Hasbro, Fisher-Price, Character Options
- Deal structure: 10-15% royalties with $2M-10M annual minimums

Apparel & Accessories: 25% revenue share

- Global retail presence including Target, Walmart, Tesco
- Royalties: 8-12% with territorial exclusivity

Publishing & Educational: 15% of licensing revenue

- Book sales exceeding 10 million copies globally
- Educational partnerships with Oxford University Press

Food & Beverages: 10% growing segment

- Partnerships with major FMCG brands across markets
- Structure: 6-10% royalties plus co-marketing commitments

Digital & Gaming: 5% but fastest growing

- Mobile apps with 50M+ downloads
- Streaming platform partnerships globally

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• Toy partnerships: 8-15% royalties + $240K-1.2M minimum guarantees
• Apparel deals: 6-12% royalties + $60K-480K advances
• Food/FMCG: 5-10% royalties + $30K-240K minimums
• Digital/gaming: Revenue shares of 20-40% plus development cost sharing

• Mobile gaming: 30-50% revenue share with publisher
• Merchandise: 10-18% royalties + territorial exclusivity clauses
• Brand partnerships: $30K-120K per campaign + profit sharing
• Educational content: Flat licensing fees of $12K-60K per platform

• Major toy partnerships: 12-20% royalty rates
• Guaranteed minimums: $1.2M-3.6M for major releases
• Cross-promotional clauses: Linking media releases and merchandise launches
• Digital rights: 25-40% revenue shares for streaming and gaming

Shemaroo's Yedaz brand partnering with Macmerise for iconic Bollywood dialogue merchandise represents a new frontier. Sources indicate deal structures include:

• 15-25% royalty rates for established movie franchises
• $120K-$360K minimum guarantees for major releases
• Cross-promotional clauses linking theatrical and merchandise releases

Global entertainment companies are increasing their emerging market licensing investments by 50-80% annually. They're seeing the concentration effect that happens when markets focus heavily on character-based IP.

Major toy companies like Hasbro and Mattel are shifting more budget toward these markets. Streaming platforms are exploring merchandise partnerships for regional content. Studios worldwide are launching dedicated licensing divisions.

The economics are simple: character licensing trades at 8-15x annual revenue multiples compared to 3-5x for traditional content. Animation studios with proven licensing track records command 40-60% premium valuations.

Content creators are now allocating 10-15% of production budgets specifically for IP development and licensing setup. Revenue diversification is reducing dependence on traditional revenue streams by 30-50%.

• Yash Raj Films' licensing division is actively monetizing IP through television, radio, consumer products, and public performance licenses
• Sources indicate YRF is generating $1.8-3.0 million annually from licensing operations alone
• Dharma Productions reportedly building dedicated merchandise division for 2025 launch

• Global toy majors (Hasbro, Mattel) increasing India licensing spend by 40-60% annually
• Disney's India licensing revenue reportedly crossed $12 million mark in 2023
• Netflix exploring character merchandise partnerships for Indian originals

• Enhanced IP protection enforcement leading to a 300% increase in licensing compliance
• New guidelines for digital character rights expected Q2 2025
• Tax optimization structures for licensing royalties under review

• Character-focused content commanding 25-40% higher production budgets due to merchandise potential
• Studios allocating 10-15% of production budgets specifically for IP development and licensing setup
• Revenue diversification reducing dependence on box office/viewership by 30-50%

• Character IP licensing multiples trading at 8-15x annual revenue vs. 3-5x for traditional content
• Animation studios with proven licensing track records commanding 40-60% premium valuations  
• Live-action IP with merchandise potential, seeing 20-30% higher acquisition interest

• Original character creation is becoming a key differentiator in content commissioning
• Licensing revenue-sharing clauses now standard in production agreements
• Global expansion strategies are increasingly built around exportable character IP

The shift from content monetization to character monetization is accelerating. Studios that understand this transition are building sustainable revenue engines that outlast individual shows or movies.

TMKOC's 40% non-broadcast revenue and Chhota Bheem's ₹300 crore brand value aren't outliers - they're indicators of where the industry is heading. 

Global icons like Peppa Pig and even Hello Kitty, for that matter, whose brand value is around $80B, prove that once characters cross borders, they can unlock multi-billion dollar universes.

Character licensing is becoming a primary revenue stream, not a secondary one.

The smart money is backing character-first content strategies and studios with proven IP monetization capabilities. The licensing tail is starting to wag the content dog.

Licensing Talent War: Character licensing specialists are commanding $48K-90K salaries as studios compete for IP monetization expertise.

Cross-Border Franchise Interest: International entertainment companies are increasing emerging market licensing investments by 50-80% annually for local character partnerships.

Technology Integration: AR/VR merchandise experiences are becoming standard in licensing deals worth $600K or more.

Regional Market Growth: Local language character licensing is growing 60% faster than mainstream content, with regional characters commanding premium rates in their home markets.

Studio Awakening: Major production houses are launching dedicated licensing divisions after seeing regional success stories generate 40% revenue from non-traditional sources.

I’ll see you this Saturday,
Vipul Agrawal | CEO & Founder, Mugafi.
Leeds1888.

About Leeds1888: We track the money, deals, and insider moves shaping India's media & entertainment industry. For exclusive industry intelligence and deal flow updates, reach us at [email protected]