Classic media: internationalization of Postman Pat
On 14 December 2006, Entertainment Rights announced it would acquire US-based rival Classic Media for $210 million (£107 million). The deal was completed on 11 January 2007. On 1 April 2009 it was announced that Entertainment Rights would be acquired by Boomerang Media (formed by the founders of subsidiary Classic Media, Eric Ellenbogen and John Engelman).
On 11 May 2009, it was announced that the subsidiaries and offices of Entertainment Rights would be absorbed under the name Classic Media (CM). Entertainment Rights' acquisition of Classic Media, which owns the rights to Lassie and The Lone Ranger, for £107m in 2006, helped create the massive debt which brought the company to its knees. By the acquisition of Entertainment Rights Classic Media also has got access to one of the biggest icons among small kids in the preschool age, Postman Pat.
Postman Pat
Set in the fictional Yorkshire village of Greendale, Postman Pat and his faithful companion, Jess the Cat, began delivering post on BBC1 25 years ago in September 1981. Postman Pat continues to air on the BBC in the United Kingdom with episodes licensed and the broadcast platform secured beyond 2010. The target viewer group for the show is the preschool age (2-6 years). Postman Pat and the TV shows have now been shown in more than 100 countries around the world. With sales in so many international markets, it is important that the brand awareness created by the TV platform is leveraged through the development of a strong licensing and merchandising line.
For example, in the United Kingdom in 2004 Marks & Spencer acquired the rights for using the characters in 70 of its top stores. The programme included a range of nightwear, underwear, slippers, watches and puzzles for children aged 3-6. Postman Pat and Jess the Cat proved to be an irresistible gift buy for parents, grandparents, guardians and others. In May 2009, CM secured partnership with one of the UK's largest theme parks - Flamingo Land in North Yorkshire - for Postman Pat and other characters from Special Delivery service to take up residence. In October 2009 CM teamed up with Timeless Films to make a 3D animated Postman Pat movie for 2011. It is the first time that Postman Pat will appear on the big screen after almost 30 years on television. Timeless Films will distribute the movie in the UK and internationally
QUESTIONS
1. List the criteria that you should use for choosing new international markets.
2. If you were to advise CM would you recommend them to use the ‘organic' or ‘born global' pathway for the internationalization of Postman Pat?
3. What values/benefits can CM transfer to the license partners for consumer products apart from using the Postman Pat characters?