Podcast Summary: The Digital Executive | Sam Bremner: Navigating Consumer Trends | Ep 1199

Overview In this episode of The Digital Executive, host Brian from Coruzant Technologies interviews Sam Bremner, Co-Founder and Managing Partner at iBest Consumer Partners. The discussion centers on the burgeoning world of licensing, the strategic rise of licensing as a boardroom priority, and the evolution of licensing into investable, institutional-quality assets. Drawing from industry data and Sam’s operator-experience background, the conversation covers key trends impacting consumer brands, shifting strategies within corporate licensing, and the future financialization of royalties.

Key Discussion Points & Insights

The Economic Drivers Behind Licensing Growth

• Capital-Light Expansion:
  • "First is licensing is capital light growth and boards, you know they're very focused on capex. Right. Brands scale globally without inventory and balance sheet risk which boards care about a lot. And royalties is a 95% gross margin business."
    — Sam Bremner (02:10)
• Brand Efficiency Across Channels:
  • "Second, IP cuts through the fragmented distribution because strong brands lower customer acquisition costs across channels. That's why licensing has moved from marketing to a board level value and margin strategy..."
    — Sam Bremner (02:33)
• Licensing enables brands to reach global markets without heavy capital expenditure and by leveraging high-margin royalty streams, licensing has become a central, board-level lever for growth and profitability.

Franchise IP vs. Digital Native IP: Value Creation

• Franchise IP Dominates on Longevity and Predictability:
  • "Franchise franchises deliver global scale longevity and predictable royalty streams. Digital native IP is powerful but higher risk."
    — Sam Bremner (03:40)
• Transforming Engagement to Products:
  • "The breakout winners will be digital brands that successfully convert engagement into physical consumer products, which is where operator experience really matters."
    — Sam Bremner (03:56)
• Warner Brothers Example:
  • "Our team at IVEST... built out Warner Brothers consumer products and licensing globally... built it up to a $7 billion business. So when you look at things like Batman, Harry Potter... those are great digital ip. But you can make a lot of money by selling product related to that IP because people have a value connection, an emotional connection."
    — Sam Bremner (04:06-04:28)
• Franchise IP brands, exemplified by legacy characters like Harry Potter and Batman, remain the most stable and profitable, yet there’s promise in newer digital IPs if they can convert online audiences to tangible product sales.

Licensing as an Institutional and Investable Asset

• Shift to Revenue Platforms:
  • "The corporate brands now manage licensing as a structured revenue platform, not just a side project. That shift is why institutional Capital is paying attention and why private equity sees it as underwritable today."
    — Sam Bremner (05:29)
• Adjacent Category Expansion:
  • "Now they're creating Starbucks branded product and selling it at Costco... you can extend into new categories... Jeep... has an incredibly successful apparel brand as well."
    — Sam Bremner (05:47)
• Case Study — Makeup Brand Expansion:
  • "I said look, why don't we get into adjacent categories by licensing the brand to people that make makeup brushes, makeup bags and other accessories. You don't have to manufacture them yourself."
    — Sam Bremner (06:26)
• Corporate brands are strategically leveraging their IP into structured, repeatable revenue streams beyond core offerings—prompting serious attention from private equity and institutional investors.

The Financialization of Licensing Royalties

• Alignment with Financial Asset Classes:
  • "Licensing royalties already have the right profile, recurring, diversified and contract based. But institutional capital needs discipline. That means clean governance, transparent sell through data and diversified licensee exposure."
    — Sam Bremner (07:37)
• Governance and Data Standards as Prerequisite:
  • "The standards are exactly what we focus on at IBEST and what we unpack in the Licensing International private equity series that we created."
    — Sam Bremner (07:58)
• Industry Gathering Recommended:
  • "They have a big conference coming up in Vegas... over 12,000 people. Thousands of licensed product manufacturers... IP owners as well as other professionals around the licensing industry. I recommend looking it up."
    — Sam Bremner (08:08)
• The podcast emphasizes that clean data, governance, and contract transparency are essential for licensing revenues to be considered as legitimate, securitizable assets, echoing trends seen in music royalties.

Notable Quotes & Memorable Moments

• On Licensing Margins:
  • "Royalties is a 95% gross margin business."
    — Sam Bremner (02:18)
• On Franchise Value:
  • "Harry Potter still to this day is billions of dollars in licensed product."
    — Sam Bremner (04:22)
• On Adjacent Brand Strategies:
  • "Find someone who's great at it... we're going to partner with these other manufacturers to add these other categories. So Walmart loves it, it's exclusive to them, it's unique."
    — Sam Bremner (06:37)
• On Institutionalization:
  • "Institutional capital needs discipline. That means clean governance, transparent sell through data and diversified licensee exposure."
    — Sam Bremner (07:41)
• On Industry Opportunities:
  • "Licensing International, it's coming up soon and it'll be a great way for you to take your business to the next level by creating royalties revenues, which trades at a higher value multiple."
    — Sam Bremner (08:13)

Important Segment Timestamps

• Introduction to Sam Bremner and iBest Consumer Partners
  00:20 – 01:23
• Forces Driving Licensing Growth
  02:10 – 02:53
• Franchise vs. Digital Native IP Discussion
  03:40 – 04:51
• Corporate Brand Licensing as an Investment Platform
  05:29 – 06:54
• Institutionalizing IP Cash Flows & Standards
  07:37 – 08:51
• Licensing International Conference Mention & Closing Advice
  08:08 – 09:22

Tone & Takeaways

The discussion maintains a pragmatic yet optimistic tone, highlighting the transformative potential of licensing for both new digital-first brands and legacy corporate brands. Sam Bremner anchors his commentary in hands-on operational experience and industry data, making the episode highly practical for founders, corporate executives, and investors aiming to understand or capitalize on the modern licensing landscape.

Recommended Action:
For those interested in licensing, both the Licensing International private equity series and their upcoming conference are essential resources to deepen understanding and network with top industry players.

Host: Brian, Coruzant Technologies
Guest: Sam Bremner, iBest Consumer Partners