ABSTRACT
The licensing of familiar movie or cartoon character names had become a $20.6 billion per year industry, by early 1983. Accordingly, toy manufacturers turned increasingly to the licensing of characters with built-in media exposure, which increased the appeal of these products to video-oriented children. The usual financial arrangements included a hefty up-front payment to the film/video game company as well as seven to ten percent of the wholesale price of each unit shipped. Mark Pepvers, vice president of Twentieth Century Fox Licensing Corp., stated that George Lucas envisioned Star Wars "with the toy by-products in mind. He was making much more than a movie". Movies, television programs, and arcade games may prompt consumer interest, but some characters did not find favor no matter how exhaustive the hype. The movie Annie seemed like a can't miss hit and led toymakers to scramble for licenses; however, the film bombed at the box office and the licensed characters experienced flat sales.
