For Broadcast October 29, 2008

How important is spin-off merchandise to TV's bottom line?

When spin-offs work, they really work. Just ask Disney. The company is the past master at programme merchandise. Thanks to a hit film and lots of fluffy toys and DVD sales, The Lion King was a billion-dollar franchise - and that was in 1994.

So when ITV says it is going to create products off the back of its much-loved soap Coronation Street, including Rover's Return pub grub and Newton & Ridley beer, you have to give it credit. If it works, it could be big and provide a much-needed extra revenue stream to ITV.

In the first half of this year ITV reported £57m in sales from "distribution and exploitation" which includes both programme sales outside the UK and extensions like DVDs. It is a line in the accounts that the new ITV global entertainment team, headed by Peter Iacono, hopes will get a lot bigger in the near future. Recently he was effusive about an Emmerdale food spin-off, a sort of a "Duchy Original for the everyman" and, of course, the spin-off potential of Britannia High.

But the problem is that merchandise often does not work. Slapping a logo on a mug or a T-shirt may appeal to the avid fan but creating a bankable franchise is about moving beyond the souvenir market into something more sustainable.

The point is that not all IP is created equal (and I have this from someone who has wrestled with biggies like Hasbro in his time in the business). Take The Prince of Egypt, the film Jeffrey Katzenberg made after departing the Mouse House and starting up DreamWorks. The Prince of Egypt was a sort of animated Moses musical. However good the movie, Moses as a cuddly toy was a bit of a stretch. How about some Parting-of-the-Red Sea shower curtains, or a Burning Bush night light? See what I mean?

Closer to ITV, Lost in Austen averaged 3.2 million viewers and has already racked up DVD sales of 15,000 in week one. But spin-offs beyond that are difficult to visualise; a range of Lost in Austen bonnets seems unlikely.

Corrie may lend itself to studio tours and bingo, but I hope that someone at ITV is dong some research on whether Corrie fans will queue up for a pint of Newton & Ridley. The other problem is whether Corrie merchandise will have global appeal. Rover's Return pub grub will struggle to have the same resonance as Jamie Oliver does overseas.

But then, you never know. Pop Idol went into franchising in a big way from karaoke machines to makeup and in the Benelux countries there was even a limited edition Toyota Yaris car in the silver-and-blue Pop Idol livery and boasting an enhanced sound system. Clearly, there's no accounting for taste.