As Bugg Marketing Solutions celebrates its 20th anniversary, it is worth reflecting on just how dramatically the licensing business has changed during that same period. I have spent more than three decades working in and around this industry, first as the co-founder and publisher of License Global, and later as an advisor, co-author of Brand Licensing For Dummies and creator of X Tracks Licensing Summits. From that vantage point, the single biggest change I have witnessed is the shift from a product-driven business to a fandom-driven one.
Twenty years ago, licensing was largely controlled by a relatively small group of major entertainment companies, toy manufacturers, retailers and consumer-products companies. The process was comparatively linear: a film, television series or toy brand generated awareness; licensees developed products; retailers selected what they believed would sell; and consumers bought what appeared on the shelf.
Today, that hierarchy has been turned upside down. Fans are no longer simply the final step in the process. They increasingly determine which properties gain momentum, which characters become cultural icons and which collaborations succeed. Social media, streaming, gaming, anime, manga, K-pop, webtoons and online communities allow audiences to discover and elevate intellectual property long before traditional gatekeepers decide it is commercially viable.
That change has also transformed the role of licensing itself. Licensing was once treated by many companies as an ancillary revenue stream: a way to extend a successful movie, television show or brand into merchandise. It is now one of the most powerful tools available for building brand relevance, reaching new audiences and creating deeper emotional connections with consumers.
The rapid global growth of anime, manga, gaming, collectables and kawaii culture demonstrates that the next major franchise does not have to begin in Hollywood. It can emerge from Tokyo, Seoul, Shanghai, Melbourne or from an online creator community that did not exist a few years earlier. Increasingly, culture travels in every direction.
By 2030, licensing will become even faster, more global and more connected to real-time consumer behaviour. Content, commerce and community will continue to converge. Consumers will move seamlessly from watching a programme, playing a game or following a creator to purchasing products, attending experiences and joining fan communities built around that intellectual property.
Artificial intelligence will accelerate trend identification, product visualisation, localisation, marketing and licensing administration. Yet technology will not eliminate the need for human judgement. The companies that succeed will be those that understand not only what fans are buying, but why a particular story, character or brand matters to them.
Physical products will remain essential because fans want tangible expressions of belonging. At the same time, experiences, pop-ups, hospitality, live events, gaming and location-based entertainment will become increasingly important parts of the licensing ecosystem. The future will not be purely digital or physical. It will be an interconnected world of stories, products, experiences and communities.
The opportunities that excite me most are those emerging at the edges of the traditional business: Asian entertainment, gaming, creator-led brands, emotionally driven collectables, nostalgia, comfort, cute culture and collaborations that help established brands connect authentically with younger consumers.
Australia is particularly well positioned to benefit. Its proximity to Asia, multicultural population, sophisticated retail market and strong toy and entertainment sectors make it a natural bridge between global intellectual property and regional opportunity.
Technology will continue to change how licensing deals are identified, negotiated, marketed and measured. But the purpose of licensing will remain the same: connecting people with the stories, characters, brands and communities they care about. That is what has made this industry so resilient over the past 20 years—and what will make the next 20 even more exciting.
By Steven Ekstract — X Tracks Licensing Summits (Author, Brand Licensing For Dummies)
This article also appeared in Edition 55 of The Bugg Report Magazine
