Habo, to strategic planning and market/consumer intelligence studyyou have conducted unique study into the value of intellectual properties.
In recent years, Intellectual properties (IPs) have seen an increase in use within the entertainment and creative industries, helping deliver compelling experiences that are relatable to mass audiences. However, not all IPs appeal to all demographics, and customers will value and align with some IPs over others.
Organizations that are considering working with an IP should undertake a strategic approach that takes into account different aspects of an intellectual property, including awareness, fan acquisition and purchase intent.
The quantity of IP-based entertainment experiences continues to grow. In 2021, 43% of Broadway musicals were inspired by IPs, and 79% of US box office revenue was generated by franchises within the top 100 performing films. IPs are often at the core of theme parks and attractions which draw in millions of consumers each year.
Value of IPs
In a key move to understand the complexities of Intellectual Properties, Habo undertook a unique study. A representative says: “The Habo IP Index first started with a hunch: through our projects, we realized that consumers often felt particularly emotionally involved when it comes to IPs and experiences designed around them. The stronger the emotional bond consumers feel towards a particular IP, the more they are willing to spend and the more emotionally invested they will be in the experiences or products based on that IP.”
Whilst attractions understand the marketing value of IPs, few studies have sought to analyze the definitive value of IPs for experiences and projects. This knowledge gap needed a tool to help companies and brands make better strategic choices with IPs.
As a core part of the Habo IP Index, the firm asked more than 5,300 US residents about the intellectual properties they feel meaningful connections with, with Habo measuring their feedback in relation to twelve attributes. Demonstrating the strength of the Habo IP Index, seventy of the world’s top IPs across the five categories of movies, TV shows, video games, live shows and books have been analyzed. These have then been ranked based on their value by triangulating three fundamental dimensions of Health, Love and Value.
With all three aspects of the Habo IP Index, the study shows that younger generations have a stronger sense of attachment to intellectual properties, connecting strongly with mutual fans of the IPs they love the most.
Having grown up in an age dominated by new technologies and platforms, millennials and Gen Z have been much more exposed to IPs and stay updated on new developments with social networks and communities.
These generations are an important market segment in the entertainment, creative and licensing industry. Because of their attachment to certain intellectual properties, they show a stronger interest in consuming experiences based on them.
The study also found that not all intellectual properties benefit from the same level of elasticity. Almost all the IPs featured at the top of the Habo IP Index are multidimensional, starting as films or books before expanding into other mediums.
The term “Elasticity” refers to a property’s ability to generate consumer interest across a range of product categories including movies, VR experiences, restaurants, rides and more.
Height of heroes
The study has shown that Americans retain a strong interest in superhero IPs, with Batman, Black Panther, Avengers, and Spider-Man featuring in the top 20 list. In fact, superheroes represent a fifth of the strongest IPs in 2022, in comparison to 9% of the total IPs tested. When looking at revenues from the US box office in recent years, almost all weekly gross revenue peaks can be associated with movies from DC Comics or Marvel franchises.
Habo’s elasticity index identifies that this subcategory has huge potential to be utilized in a wide combination of experience types, including VR experiences, amusement parks, and video games.
Superhero properties are followed closely by fantasy and sci-fi films – collectively IPs based on any of these three genres account for half of the top 20.
This first edition of the Habo IP Index is the foundation for Habo’s broader reflection on the role and value of intellectual property in the entertainment, creative and licensing industry.
Habo has announced that it will soon be publishing a sequel to this first edition of the IP Index, aiming to identify the most valuable IPs within each experience category.
More insights can be found in the full study, available from the Habo website.