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KPop Demon Hunters toys from Mattel ( MAT ), Hasbro ( HAS ) not likely

until new

year

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Toymakers waited for film release before licensing, source

says

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Firms did not foresee film's popularity, source says

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Toy shortages likely due to tariffs; retailers cut back on

orders

By Arriana McLymore and Jessica DiNapoli

NEW YORK, Oct 22 - Fans of Netflix's ( NFLX ) runaway hit "KPop

Demon Hunters" will only be able to get their hands on branded

toys well after the key holiday shopping season, a missed

opportunity for Mattel ( MAT ) and Hasbro ( HAS ) that have won licensing deals

from the streaming giant.

Netflix ( NFLX ) said on Tuesday that Mattel ( MAT ) and

Hasbro ( HAS ) will make toys, collectibles, games and role-play

products based on the film that can be pre-ordered in the coming

weeks, but most of those will not ship before January.

The toymakers had the chance to meet the year's biggest

toy-buying period, a person familiar with the matter told

Reuters. However, they did not foresee the crossover appeal with

Korean pop music and anime fans as well as casual viewers, so

they declined to commit to a licensing deal before the film was

released in June, the person said.

Since it typically takes major toymakers 12 to 18 months to

win licenses, develop, manufacture and ship products to the

U.S., they collaborate with movie studios on scheduling product

releases, planning to stock shelves with what they bet will be

popular toys before the year-end holidays, when toymakers make

nearly a third of annual sales, industry experts said.

Mattel ( MAT ) and Hasbro ( HAS ) declined to comment on whether they

declined the licenses before the film was released.

In an interview on Tuesday, Ynon Kreiz, CEO of Mattel ( MAT ),

said: "It does take time to develop product, especially at the

quality that we do."

"Here, we're going to put (the toys) on a fast track given

the strong demand," Kreiz said.

MERCHANDISE LICENSING OPENS UP NEW NETFLIX REVENUE STREAM

KPop Demon Hunters tasted success at release. It topped

streaming and became Netflix's ( NFLX ) most-watched animated film ever

by early July, while "Golden," a song from the film hit No. 1 on

Billboard Hot 100. Two months later, a theatrical sing-along

release sold out at more than 1,300 theaters including in the

U.S. and UK.

To be sure, merchandise tied to movie hits or seen on

celebrities can sell out no matter the time of launch. For

instance, Labubus, the collectible plushie toys with a

sharp-toothed grin, were first launched in 2015 but went viral a

decade later after stars including BLACKPINK singer Lisa were

seen carrying one.

But holiday sales this year are widely seen as even more

important for a toy industry that has for years faced

competition from mobile game makers and streaming firms, as U.S.

tariffs on imports have boosted costs.

For Netflix ( NFLX ), merchandise licensing opens up a new revenue

stream as its subscriber base matures - one that has brought

enormous success to the likes of Walt Disney ( DIS ) and Warner

Bros Discovery ( WBD ) with movies such as "Frozen" and

"Barbie."

Netflix ( NFLX ) in January landed its first master licensing deal

with Squishmallows-maker Jazwares to make toys and costumes for

a collection tied to TV show "Stranger Things". The company has

since partnered with Lego to make building sets inspired by

anime series "One Piece".

THIS SEASON'S CANDIDATES FOR MOST POPULAR TOYS

Some U.S. toymakers expect shortages of toys this season

considering many supplies come from China, whose goods the U.S.

subjects to steep tariffs. They have also said major retailers

have cut back on holiday orders because of rising costs and

uncertainty about consumer spending. However, Adobe Analytics

forecasts U.S. consumers will spend about $8.8 billion on toys

this holiday season, up from $8.2 billion last year.

Toys linked to "Jurassic World: Rebirth," which was released

in July, and "Transformers 8: Rise of Unicorn," set for release

in late December, are likely to be the most popular merchandise

this year, said Greg Ahearn, CEO of trade group Toy Association.

Funko ( FNKO ), which makes four-inch collector's items

called Funko Pops, announced a deal with Netflix ( NFLX ) in August to

make $14.99 figurines inspired by KPop Demon Hunters characters.

But these too will only ship by January 30, the company's

website showed.

Funko ( FNKO ) did not immediately return a request for comment.

Mattel ( MAT ) is manufacturing a pack of three dolls from the

movie, while Hasbro ( HAS ) is developing a branded Monopoly card game

that will be available to ship on January 1.

"We have a long relationship with Disney ( DIS ) on Marvel and Star

Wars, and so we know what the cadence of entertainment events

is, and we plan accordingly to create products around those

entertainment events," Hasbro's ( HAS ) president of toys, games,

licensing & entertainment, Tim Kilpin, told Reuters this month.

"But there are also times when a new property starts to

break out. Those don't happen very often but when they do it's

exciting, it's a surprise," he said.