How lucrative licences are shaping the toy industry

Summary

Podcast Summary: Business Daily –

How Lucrative Licences are Shaping the Toy Industry

Host: Elizabeth Hodson (BBC World Service)
Date: May 11, 2026

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Episode Overview

This episode investigates how licensing, powered by streaming platforms, social media, and new global viewing habits, has become the primary engine for growth and innovation in the toy industry. The host, Elizabeth Hodson, explores how franchises from movies, TV, and online content are influencing toy trends, the importance of global reach, and the industry's response to changing regulations and consumer behaviors.

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Key Discussion Points and Insights

The Dominance of Licensing in the Toy Business

• Licenses as Industry Drivers
  • “Licenses are absolutely key. Without licenses, I don't think you'd have a business. It's what drives the business forward.”
    — Tim Ives, Basic Fun (01:59, 17:47)
  • Licensing now accounts for 37% of global toy sales, according to Sakana research (03:02).
• Toy companies rely on strategic partnerships with IP holders—ranging from major studios to YouTube creators—for both inspiration and market advantage.

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The Impact of Streaming, Social Media, and Globalization

• Global Reach of Franchises

  • International platforms like Netflix and YouTube propel content into worldwide phenomena—eg. “K Pop Demon Hunters” became Netflix’s most-watched movie, spurring massive toy tie-ins (03:02).
  • Quote: “The market is much more diverse. It's also much more global because everyone is watching the same content on their screens at the same time.”
    — Frederic Tut, Sakana (04:57)

• Regional Trends Going Global

  • Formerly niche genres—especially from East Asia (anime, kawaii), spread quickly and widely via TikTok and Instagram.
  • Denise Wong (Momotoko): “In the old days, you know when you think of like kawaii and anime, it's only like in Japan or in Hong Kong in Korea, right? But nowadays … the whole world get to see this anime world … it’s become a business opportunity.” (02:10, 12:50)

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How Toy Companies Leverage New Media

• Funko (Andy Oddie, Chief Commercial Officer)

  • Uses large portfolios of licenses across sports, movies, and viral IPs; sports partnerships now expand into football and Formula One (05:25–06:52).
  • “We're in that game. We're in the Formula One game ...” (06:25)

• Tony’s (Liz Peters, Head of Global Portfolio)

  • Leverages both established and emerging IPs from YouTube and streaming (07:26-09:54).
  • Example: Created a “Ms. Rachel” Tony after observing her YouTube popularity among toddlers (07:57).
  • Commitment to localization: “...we would often use the voice acting in the local markets who are known for those characters...” (09:16)

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“Wearables” and Keyring Craze: East Asian Innovation

• Plush keyrings and character “wearables” are a fast-growing segment, especially inspired by Asian trends such as the LeBooboo plush craze (10:15–10:36).

• “Now guess what is the biggest new trend in 2026 in the toy market? Those vinyl plush that you attach to your handbag...”
  — Frederic Tut (10:36)

• Momotoko (Denise Wong) adopts neurodiversity and Gen Z anxieties into plush designs: “Our hero character Fever lif actually has anxiety and we do have like a sumi which has ADHD.” (12:15)

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Puzzles: The Retro Revival

• Puzzles touted as the breakout hit of 2026; innovation is driven by both speed puzzling competitions and infusion of popular IPs (One Piece, Stranger Things) (02:25, 13:35).

• “Puzzles are going to be really in in 26. Why? We see, for example, the emergence of speed puzzling … new IPs are coming into puzzles ...”
  — Frederic Tut (13:35)

• Ravensburger expands puzzle licensing, e.g., “K Pop Demon Hunters” tie-in in multiple formats (14:05).

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Movie Tie-Ins and Classic Brands

• 2026 predicted to be big for movie licenses: Toy Story 5, new Star Wars (with The Mandalorian), and Harry Potter 25th anniversary (15:16).

• Mr. Potato Head collabs: Star Wars, Mandalorian, Stitch, Harry Potter, Disney villains (16:39–17:21).

  • “...you can get Yoda you've got the Mandalorian and you've got a Stormtrooper all dressed up as Mr. Potato Head...”
    — Tim Ives (17:00)

• Maintaining relevance of legacy IPs (Harry Potter), aided by new content releases (17:30).

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The Potential Impact of Regulation

• Growing concern over children’s access to social media:
  • Australia and (soon) France have banned TikTok, Instagram etc. for minors.
  • Industry tension: Toy companies draw inspiration and marketing reach from social media, but societal concerns over screen time and child development are ramping up (18:31).
  • “It's really important that I think as a society, we grab this topic and we do it right. At the same time, the toy industry needs social media because we get inspiration from what's happening on social media to lead new toys. Social media is such an incredible tool to spread new trends. It's a complex story, really.”
    — Frederic Tut (18:31)

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Notable Quotes & Memorable Moments

• Licenses as Business Engine:
  “Licenses are absolutely key. Without licenses, I don't think you'd have a business. It's what drives the business forward.” — Tim Ives, Basic Fun (01:59, 17:47)
• Global Synchronization:
  “Everyone is watching the same content on their screens at the same time ... that's opening up really big prospects...” — Frederic Tut (04:57)
• Retro Hits with Modern Flair:
  “Puzzles are going to be really in in 26 ... new IPs are coming into puzzles like Stranger Things or One Piece.” — Frederic Tut (13:35)
• East Asian Trends:
  “Now guess what is the biggest new trend in 2026 ... vinyl plush that you attach to your handbag ... slime pot ... virtual pet ...” — Frederic Tut (10:36)
• Social Media Dilemma:
  “The toy industry needs social media ... it's such an incredible tool to spread new trends. It's a complex story, really.” — Frederic Tut (18:31)

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Timestamps for Key Segments

| Segment | Timestamp | |---------------------------------------|---------------| | Opening/Theme & Licensing Overview | 01:44–03:02 | | Streaming and Global Reach Discussion | 04:07–05:25 | | Funko’s Licensing Strategy | 05:25–06:52 | | Tony’s Use of YouTube & Localization | 07:26–09:54 | | East Asian Toy Trends (Wearables) | 10:04–10:36 | | Momotoko, Gen Z, & Neurodiversity | 12:15–12:50 | | Puzzle Trend & Ravensburger | 13:35–14:05 | | Movie Tie-ins: Toy Story, Star Wars | 15:16–17:41 | | Social Media Regulations | 18:31–19:12 |

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Conclusion

Licensing sits at the heart of the modern toy industry, with global media platforms drastically expanding both the reach and speed of new trends. The interplay between streaming, social media, nostalgia, and international crossover shapes which products consumers want—from plush keyrings to IP-laden puzzles and imaginative toy crossovers. Yet, with the rise of new child-focused regulations, concerns over social media’s role in children’s lives may test the industry’s adaptability in the years ahead.

Transcript

[Narrator/Advertiser]

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[Elizabeth Hodson]

I'm Elizabeth Hodson and welcome to Business Daily from the BBC World Service. On today's program I'll be looking at how streaming platforms, social media and YouTube are creating licensing opportunities for the toy industry.

[Tim Ives]

Licenses are absolutely key. Without licenses, I don't think you'd have a business. It's what drives the business forward.

[Elizabeth Hodson]

How smartphone apps are helping brands and concepts go global.

[Denise Wong]

In the old days, you know when you think of like Hawaii and anime, it's only like in Japan or in Hong Kong in Korea, right? But nowadays, you know, because of IG, you know TikTok, the whole world get to see this anime world and why

[Elizabeth Hodson]

the good old fashioned puzzle is set to be the breakout hit of 2026.

[Frederic Tut]

New IPs are coming into puzzles like Stranger Things or One Piece. Puzzles are becoming really in and fashionable. It's quite exciting to see actually.

[Elizabeth Hodson]

You'll be hearing all about that and much more in Business Daily from the BC.

[Frederic Tut]

It's time the world will know you as pop stars. But you will be much more than that.

[Elizabeth Hodson]

That's the trailer for one of the biggest and most unexpected Netflix shows of last year. In 2025, the South Korean K Pop Demon Hunters animated movie combined catchy music, high octane action and world class animation to create a huge global phenomenon. In fact, it became the streaming platform's most watched movie of all time. And with over half a billion views and counting, it's not just Netflix who are celebrating, because the toy industry is also pretty happy about it. Global market research company Sakana said that across the 12 countries it covers, including the U.S. the UK and other big European markets, toy sales as a whole amounted to $73 billion in 2025. And crucially, products tied to licenses, for example, K pop demon hunters accounted for 37% of that figure. Frederic Tut is Sakana's global toys industry analyst and she explains what's behind the trend.

[TikTok Advertiser]

Let's get battle.

[Frederic Tut]

Things you watch on the big screen, on the small screen, on streaming, maybe licenses and properties you like when you were a teenager as a child. So there's also nostalgia coming into the equation. Consumers from, you know, three onwards are looking for products linked to their favorite brand and they're fans. So they're collecting items, toys, figurines, plush keyring items to take along with them and to showcase in their homes.

[Elizabeth Hodson]

And Frederic says that thanks to streaming services, social media and channels like YouTube, there are literally thousands of shows to choose from. And crucially, it's becoming easier for those shows to gain a global reach.

[Frederic Tut]

The market is much more diverse. It's also much more global because everyone is watching the same content on their screens at the same time. They can be watching a YouTube series, they can be watching a TikTok influencer, or they could be watching a Formula One Grand Prix. And all of that is happening at the same time. So that's opening up really big prospects for the licensors and the licensees all at once.

[Elizabeth Hodson]

One of the first companies out the block when it comes to creating toys from official licenses is Funko. They're known for their very collectible and instantly recognizable figures featuring oversized angular heads with cute cartoonish faces. A few weeks ago at one of the industry's biggest events, the Toy Fair in London's Olympia, I caught up with Andy Oddie, chief commercial officer at Funko. He told me that building up relationships with the owners of the big licenses is crucial.

[Andy Oddie]

We're very comfortable with having strong relationships with all the major studios and content providers, and through that relationship we tend to fall upon Almost every opportunity and license. That's a lot harder for most companies in this hall. They have to pick seven to 10 licenses. We've got hundreds of licenses. We're in everything pretty much, which gives us that better probability of hitting a success.

[Elizabeth Hodson]

And as sports events become ever more global, soccer and motor racing tie ups are a great way for companies like Funco to broaden their customer base.

[Andy Oddie]

That's something we're talking about a lot more internally. And you'll notice the prevalence of European sports within our range. You've seen football players out there from Liverpool and we have Bayern Munich coming Barca, we've got out there. So you know, we're in that game. We're in the Formula one game, which until recently was much more of a European sport or even Asian European. And now adjacent to all of that, we're looking at doing a lot more business in the Asia regions around licenses that might be typically associated more with that population over there.

[Elizabeth Hodson]

So what opportunities does the globalization of streaming services in particular give you as a business?

[Andy Oddie]

What we are noticing is content popping up in from all over the place that we can then execute against. We've noticed with the whole YouTube phenomenon, the way product is coming to market and content is going to market can be so different by region. But then some of those pieces of content will translate globally, others will not. But there is that much bigger scramble out there and also really effective content that we can execute against coming from all manner of regions.

[Elizabeth Hodson]

Andy mentioned YouTube and one company which has created several successful products based on YouTube shows is Tony's. They make audio players which you attach an interchangeable figurine to and this signifies which story or audiobook will play out. There are the more obvious Lion King and Paddington figurines. But now some of the characters are sourced from streaming services and social media. Liz Peters, head of global portfolio at Tony's, says these newer types of media and their licenses are increasingly important.

[Liz Peters]

YouTube is a great place for us to get inspiration and understand what's hot, especially for kids. And we know that they are consuming streaming platforms. A really good example for us is Ms. Rachel. So we really observed Ms. Rachel for a while and we saw that she was really resonating with our core demographics. So really young kids like age 1 to 3. Ms. Rachel is a kids educator and YouTube sensation. We partner with her on a special Tony. It looks exactly like her. It has has her voice. So it really speaks directly to the kids and really helps educate them at home without the use of a screen.

[Elizabeth Hodson]

You work with lots of different intellectual properties. So IPs, I guess on the plus side, you've got a massively wide range of characters to choose from. So how do you pick a winner?

[Liz Peters]

Well, it's very difficult. There's a lot of choice out there, so we really need to whittle it down. So we subscribe to a lot of industry data. What's performing well there? We Also look at YouTube, we look at other streaming platforms or TV shows that are performing well.

[Elizabeth Hodson]

So if, for example, you have a real person or a cartoon character who you'd like to feature, what happens when you want to introduce that character to, say, a region which doesn't predominantly speak English? Do you say translate or do you just stick with the original version? How does that work?

[Liz Peters]

We always try to localize where possible. So even in US and uk you'd think that we obviously speak the same language, but we really try to always have British English or American English, whatever is relevant. So for someone like Ms. Rachel, her voice is known in all English speaking territories, so we would never translate her or even localize her. But for example, in our non English speaking markets we would use translators and we would often use the voice acting in the local markets who are known for those characters who are often like quite famous in their own right as the dubbing actors and we would use them to voice their stories.

[Elizabeth Hodson]

And as toy and viewing trends become more global, one particular region is coming to the fore. Says Frederic Tut from Sicarna, who we heard from earlier.

[Frederic Tut]

The influence, the newness, the disruption is really coming from the east. So now the innovations come coming from China, from South Korea, from Japan.

[Elizabeth Hodson]

And Frederic says one of the trends coming from that region is key rings, which she says will be huge this year, especially in the form of what's being called wearables, that's things you attach to bags or clothing. And it all started with the breakout success on social media of leboo, a line of collectible plush toys created in Hong Kong.

[Frederic Tut]

Think about the Le Booboo craze, for example, of 2025. This has taken the world by surprise. Everybody was in awe of all this incredibly funny looking plush with a keyring that you attach to your handbag. Now guess what is the biggest new trend in 2026 in the toy market? Those vinyl plush that you attach to your handbag and the manufacturers that do slime will have a little slime pot that you attach to your handbag and those that do little virtual pets will have a virtual pet that you attach to your handbag. Or your rucksack or your backpack.

[Elizabeth Hodson]

This is Business Daily from the BBC World Service.

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[Elizabeth Hodson]

I'm Elizabeth Hotson and in today's program we're looking at how social media and streaming services are transforming the toy industry. Denise Wong, who's originally from Hong Kong is creative director of Momotoko which makes cute looking plush toy keyrings. But her products have a very on trend USP or unique selling point. The themes of the characters are rooted in neurodiversity and very modern day worries.

[Denise Wong]

Momotoko is all about perfectly imperfect characteristic of Gen Z and Millennial. When we come up with design we always I think of like a hero princesses but the real world is all about the real human. So our hero character Fever lif actually has anxiety and we do have like a sumi which has adhd.

[Elizabeth Hodson]

So looking around the store it speaks to me of anime, of kind of kawaii so that cuteness but kind of edgy.

[Denise Wong]

I grew up in the Kawaii anime culture because I was like born in Hong Kong, you know my partner is from Japan, Tokyo. So this is like very natural for us. In the old days when you think of like kawaii and anime it's only like in Japan or in Hong Kong, in Korea. Right. But nowadays you know, because of like IG, you know TikTok, you know the whole world like get to see this like anime world and it's so colorful and it's so dreamy, you know everyone is like turning around and say oh like anime or kawaii. It's become a business opportunity.

[Liz Peters]

Yeah.

[Elizabeth Hodson]

So keyrings are set to be a big business opportunity this year. And Frederic Tutte thinks another retro favourite will also do well. The good old fashioned puzzle.

[Frederic Tut]

This is the category with the most innovation I've seen. Puzzles are going to be really in in 26. Why? We see for example the emergence of speed puzzling which are competition where everyone is doing the same jigsaw puzzle at the same time and the winner is the one who's doing. We also see that new IPs are coming into puzzles like Stranger Things or One piece Puzzles are becoming really in and fashionable. It's quite exciting to see actually Frederic

[Elizabeth Hodson]

mentioned the importance of film and pop culture tie ups to puzzle makers. And one of the biggest players in the puzzle market is German company Ravensburger. And it's hoping that its license of the moment, K Pop Demon Hunters, will push sales into the stratosphere. Katie Fletcher is their head of marketing and product development globally. The licenses are done on an individual basis. So for Ravensberger, we have the puzzle and the painting by numbers license. We are launching a painting by numbers product as well. With our puzzles, we work with lots of different formats. So, for example, 500 piece, 1,000 piece, 2,000 piece. We even go up to 40, 2,000 piece. So we've got a lot of scope of opportunity to extend the K Pop Demons range out to further puzzle formats. So it's worth investing in these types of licenses, which may be very expensive, but at the same time, you've got lots of different formats that then you can basically create puzzles for. Yeah, absolutely. Sakana's Frederik TUT is predicting 2026 will be a big year for movie licenses in general.

[TikTok Advertiser]

And.

[Elizabeth Hodson]

And she says some familiar faces will be leading the charge.

[Frederic Tut]

First of all, we look at what's coming up in the theaters, at the cinema. And so in 2026, I think we have the biggest lineup of family friendly movies coming up since 2019. So if you want to know just a few of them, let's think about Toy Story. The fifth installment is coming.

[Elizabeth Hodson]

Woody. Jesse. Hello. Is it as bad out there for toys as they say it is? We're finding more abandoned toys each day.

[Frederic Tut]

Tex invaded our house too.

[Elizabeth Hodson]

I don't know, Jesse.

[Andy Oddie]

Toys are for play, but tech is for everything.

[Frederic Tut]

We also have a Star wars movie with the Mandalorian.

[Narrator/Advertiser]

Hey, never touch the buttons.

[Frederic Tut]

Toy manufacturers work ahead of time, and they know that in 26, these are going to be some of the winners.

[Elizabeth Hodson]

One of those toy makers is US Company Basic Fun. They've manufactured lines based on both Star wars and Toy Story in the form of Mr. Potato Head, but with a twist. As Tim Ives explains, he looks after sales and marketing in Europe for the company.

[Tim Ives]

With Mr. Potato Head, obviously it's been around for years. We're working with a number of licenses to do collabs with it. So it's mixing together Mr. Potato Head, which is a classic, and introducing things like Star wars and Mandalorian and also doing things like Stitch, which obviously was a big movie last year and is still very popular.

[Elizabeth Hodson]

You're having a Mr. Potato Head in Star wars mashup?

[Tim Ives]

Absolutely. Yeah. So you can get Yoda you've got the Mandalorian and you've got a Stormtrooper all dressed up as Mr. Potato Head. And of course, these are all interchangeable, so you can mix and match them.

[Elizabeth Hodson]

So you can have a Stormtrooper slash, Mandalorian, Mr. Potato Head, or Mrs. Potato Head.

[Tim Ives]

Yeah, you can mix them all up. There's even Harry Potter and Disney villains. There's all sorts of great collabs we can do with these properties.

[Elizabeth Hodson]

Talking about Harry Potter, Harry Potter turns 25, I think, this year. What's new about Harry Potter? How do you keep that license relevant?

[Tim Ives]

Well, Harry Potter, it's obviously a great property. It is its 25th anniversary in 2026. They're producing more content, so there's going to be different shows coming out. It's not all about the movies necessarily, but it's got great history.

[Elizabeth Hodson]

So from your point of view, how important are licenses to your toy sales?

[Tim Ives]

Licenses are absolutely key. Without licenses, I don't think you'd have a business. It's what drives the business forward is

[Narrator/Advertiser]

to make a child happy.

[Elizabeth Hodson]

Barney still needs us. But despite the general optimism in the toy industry, there is a potentially rather dark cloud on the horizon. New regulations over children's access to social media. A ban on sites like TikTok, Instagram and Snapchat was brought in for children in Australia at the end of last year. The first country to impose this kind of restriction and plans to enforce a similar set of regulations is going through the French Parliament at the moment. Frederic Tut from Sukana says it's a debate that the toy industry can't ignore.

[Frederic Tut]

What's behind all of this is really a question of wellness and mindfulness, where we realize that screen time is having an impact on children's development and their speech, their reasoning, their intelligence, their attention span, and so on and so forth. It's really important that I think as a society, we grab this topic and we do it right. At the same time, the toy industry needs social media because we get inspiration from what's happening on social media to lead new toys. Social media is such an incredible tool to spread new trends. It's a complex story, really.

[Elizabeth Hodson]

It's too early to say how current and potential social media bans for children will impact the toy industry. But with so much at stake, it's something that everyone involved, from the platforms themselves to the toy manufacturers, will be thinking very carefully about. Well, thanks so much for listening. And that's all from me, Elizabeth Hodson. But Business Daily will be back again soon.

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