Flying High

Sales of drones in the U.S. more than doubled in 2016, according to the NPD Group, with sales of higher-end products (retailing for $300 and up) growing the fastest in terms of dollar revenue and consumer-level models (priced from $50 to $100) seeing unit sales spike during the holiday season. The latter accounted for 42% of unit sales and 25% of dollar sales during the fourth quarter.

With rising sales comes increased licensing activity, and that has certainly been the case in recent months. Some of the property types that are particularly relevant include:

• Pro drone racing events and entities. Spin Master’s Air Hogs brand markets drones tied to DR1 Racing and has endorsement deals for the line with some of the league’s leading racers.
• Photography-related brands. Abrim Enterprises debuted Polaroid camera drones earlier this year, while Sakar markets camera drones tied to its own Vivitar brand. Both reflect the fact that aerial photography is one of the key uses for drones.
• Other electronics brands. ThreeSixty and its MerchSource division sell Sharper Image drones, which represented one of the first licensed examples to hit the market. ThreeSixty, formerly a Sharper Image licensee, purchased the brand outright in December 2016.
• Entertainment and gaming properties, especially those involving battles or flying. In this active segment, Air Hogs holds the license for drones tied to the various Star Wars incarnations; World Tech produces drones tied to Rovio’s Angry Birds, Marvel’s superheroes, and Sony’s Ghostbusters; and DGL Toys offers products tied to Activision’s Call of Duty, Bethesda Softworks’ Fallout, Saban’s Power Rangers, and Nickelodeon’s Teenage Mutant Ninja Turtles.
• Outdoor activity brands and sports properties. Sakar has a deal with Hasbro’s Nerf brand for a streaming video drone, while DGL recently acquired the license for the NFL and its teams.
• Armed Services. DGL offers U.S. Army drones as part of a broader toy deal with that branch of the U.S. military.

Watch for more drone deals, both at the higher and lower ends of the spectrum, as long as sales for the category continue to rise and relevant properties are available to provide a point of differentiation among competitors.

Raugust Communications’ May e-newsletter comes out next Tuesday (May 16, 2017). The Licensing Topic of the Month examines the up-and-down relationship between licensing and luxury goods. If you don’t already receive this free monthly publication, subscribe here.