The Strategic Role of Intellectual Property in Film Adaptations

On March 21st, it was announced that Margot Robbie, through her production company LuckyChap Entertainment, will produce a movie based on “The Sims”, a beloved life simulation game, that was initially launched by Maxis and published by Electronic Arts in 2000.Despite being over 20 years old, it continues to be one of the most popular video games with an estimated 20 million unique players for its latest version released in 2014.

This announcement followed the global success of “Barbie,” which grossed over $1 billion. In the last months, Mattel and other toy and game companies have announced plans for a host of similar adaptations of their intellectual properties, such as “Barney” and “Hot Wheels.”

It appears that top executives are leveraging the influence of cinema to maximize the potential of their companies’ intellectual assets, but will this approach prove successful? The success of the “Barbie” movie serves as a precedent, indicating Mattel’s considerable increase in brand value from $588 million in 2022 to $701 million post-premiere, according to consultancy firm Brand Finance.

The rebranding of Mattel, demonstrated by the success of “Barbie,” showcases a shift in focus from merely manufacturing toys to managing intellectual property. The benefits of the IP-based rebrand do not necessitate extensive design, supply chain, or product innovations, emerging as the most profitable solution for brand strengthening.

Consumer brands or even tech companies could also benefit from this IP boom. Just imagine if Barbie’s phone was an iPhone or Ken’s watch a Swatch.To put it briefly, brands are realizing that if they can get people to spend 90 minutes with their IP while watching a movie, it could have a positive effect on sales.

However, as many experts have noted, any IP can be turned into a film, but not any IP can be turned into a good film. There has to be a human connection with the characters and the story, or any initial box office success might be short-lived. Therefore, before expecting to reap the rewards of movie tie-ins, companies should ascertain whether their brand is adored and embraced by a strong audience.

CC: Carlotta Francescon and Alessandro Vicari