Many film companies have realized the profitability of movie merchandise wholesale sales and have begun implementing them into their marketing strategies. A key benefit of partnering with a movie merchandise distributor is the ability to cross-promote a film and create new revenue streams. For example, the studios behind the live action film 101 Dalmatians signed deals with 130 companies for cross-promotional deals. This included such popular companies as McDonald’s, Dr. Pepper, Frito-Lay, and others. Similarly, Warner Bros. signed up for over 200 movie merchandise deals for their latest animated film, Space Jam.
Although many movies don’t translate well into merchandising, there are many exceptions. The Phantom Menace, for example, will be able to spin off a variety of items. Other movies, such as Saving Private Ryan and Elizabeth, will not have such success. Musicals often generate significant revenues through soundtrack recordings, as well as music videos. In fact, music videos are increasingly a marketing tool for films. A movie’s popularity can be translated into a lucrative merchandise business if a film’s music is a hit.