Entertainment network Viacom18 is scaling up its merchandise range by licensing brands from its popular television channels Nickelodeon, Colors, MTV and VH1.

“We are developing a portfolio of merchandise from our popular range to strengthen our consumer product vertical. These products will be sold through online marketplaces as well as brick-and-mortar retail chains. We expect this to become a huge business in the coming years,” Sudhanshu Vats, Group CEO, Viacom18, told Business Line .

The company is leveraging opportunity with non-Viacom consumer products as an independent business model, which represents third party brands in different genres such as entertainment music, fashion, sport and lifestyle, he said.

Currently, merchandise contributes only 2-3 per cent to the total revenue.

“Our ancillary revenue should hit 10 per cent of the total revenue in a couple of years with the merchandise in place,” Vats added.

Its product portfolio includes ‘Dora-the-Explorer’ aimed at kids, ‘SpongeBob Squarepants’, ‘Teenage Mutant Ninja Turtles’, ‘Shaun the Sheep’ and the home-grown Motu Patlu, targeted at boys.

It also has a range of merchandise for MTV Roadies and South Park for adults.

Wide range

It has more than 100 product categories and over 300 packaging variants available in the ₹5 to ₹7,000 range.

Vats said the company is also looking at monetising its characters through live events. Industry watchers indicated that the company will have to compete with merchandise of other television networks, which also have a strong consumer product division. These include Turner-promoted Cartoon Network (Ben 10, Powerpuff Girls) and Disney (Frozen, Lion King, Disney Princess and Captain America).

Viacom18 Media has tie-ups with 50 licensees for a range of consumer products.

The company will make use of its 150-million strong media reach to popularise its range of merchandise, said Vats.

Recently, Viacom18 has secured the master licensing rights from sportswear and gear maker Nike to sell FC Barcelona merchandise in India.

It also had signed a deal with Rainbow International to launch animated series Winx Club-branded products as its master licensee.

Winx Club will target young girls and the merchandise will include toys and a contemporary apparel line.

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