A reader emailed us this
Apr 05, 2001
News
A reader emailed us this BusinessWeek story which hits newsstands on Monday.
Prime example: Harry Potter. The CEO says Potter toys will have long-lasting and international appeal. For the Potter license, Mattel is paying Warner Bros. Inc., maker of the Harry Potter movie, 15% of gross revenues while guaranteeing royalties of $20 million, says Playthings, an industry trade publication. By contrast, Hasbro paid Star Wars creator George Lucas 20% and royalties of $500 million for toys based on Star Wars Episode I The Phantom Menace. (Neither Mattel nor Hasbro would comment on licensing fees.) Mattel’s first Harry Potter toys–some board games–hit the market late last year. The rollout accelerates toward the movie’s Nov. 16 opening, with collectibles such as the electronic dragon Roarin’ Snorin’ Norbert. Although whispers at this year’s February Toy Fair trade show suggested that sales of Potter toys may disappoint, Eckert is optimistic: “We’re seeing very good sell-through from retailers.”