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Www.CMGWorldwide.com CELEBRITIES: The Past and the Future www.MarkRoesler.com.

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Presentation on theme: "Www.CMGWorldwide.com CELEBRITIES: The Past and the Future www.MarkRoesler.com."— Presentation transcript:

1 www.CMGWorldwide.com CELEBRITIES: The Past and the Future www.MarkRoesler.com

2 www.CMGWorldwide.com Today, Entertainment and Media is Americas biggest industry. The core segments, (including newspapers, book publishing, recording, music, periodicals, motion pictures, radio and television broadcasting) account for an estimated 12% of the United States Gross Domestic Product at $1.25 trillion dollars annually. www.MarkRoesler.com

3 www.CMGWorldwide.comwww.MarkRoesler.com And Entertainment and Media is Americas leading export. The industry achieved foreign sales and exports of over $90 billion last year, making it the United States leading export.

4 Our Constitution has played a key role in the creative development and the industries that come about from the fruits of intellectual property. The framers included language mandating the development of science and the useful arts. This has encouraged creative development and lays the groundwork for copyright, trademarks, and patentsall forms of limited monopolies. www.CMGWorldwide.comwww.MarkRoesler.com

5 Hollywoods Creation of Celebrities The motion picture industry is a century old. Players who performed in early, silent motion pictures, were not given screen credit and were not even identified by name. Audiences came to see "the picture show," but not any particular performers in the movie. www.CMGWorldwide.comwww.MarkRoesler.com

6 CMG Worldwide Silent Era films were NOT supposed to have stars

7 Her appearance in 1914's Tess of the Storm Country propelled her to stardom. Pickford would go on to become Hollywood's biggest female star, earning the right to not only act in her own movies, but produce them and supervise their distribution. She was also the first female actor to receive more than a $ 1 million per year (the first male actor who made a million- dollar deal was Charlie Chaplin, but not until several years later). www.CMGWorldwide.comwww.MarkRoesler.com Hollywoods First Celebrity

8 Others came along and followed suit.Others came along and followed suit. Charlie Chaplin was one, and Douglas Fairbanks was another.Charlie Chaplin was one, and Douglas Fairbanks was another. Pickford married Fairbanks and together with Chaplin and D.W. Griffith they formed their own motion picture production company called United Artists.Pickford married Fairbanks and together with Chaplin and D.W. Griffith they formed their own motion picture production company called United Artists. In their wake came the likes of Clara Bow, Gary Cooper, Jean Harlow, Humphrey Bogart, Marilyn Monroe, James Dean and the world has been star struck by Hollywood Royalty ever since.In their wake came the likes of Clara Bow, Gary Cooper, Jean Harlow, Humphrey Bogart, Marilyn Monroe, James Dean and the world has been star struck by Hollywood Royalty ever since. www.CMGWorldwide.comwww.MarkRoesler.com Mary Pickford opened the doors for others to be Movie Stars

9 Thereafter the definition of a Star came to mean someone whose name appears on screen ahead of the film title www.CMGWorldwide.comwww.MarkRoesler.com

10 www.CMGWorldwide.comwww.MarkRoesler.com Brands are part of our Everyday Life These brands are easily recognized around the world by their images alone. The common denominators behind all of these powerful brands: universal recognition universal recognition a high level of brand equity or value a high level of brand equity or value a clear and consistent presentation a clear and consistent presentation a specific set of feelings, emotions and associations from the consumer population (i.e. Coke – refreshing beverages, Disney– The most magical place on earth). a specific set of feelings, emotions and associations from the consumer population (i.e. Coke – refreshing beverages, Disney– The most magical place on earth). Often many years of success necessary to achieve this high level of brand value. Often many years of success necessary to achieve this high level of brand value.

11 www.CMGWorldwide.comwww.MarkRoesler.com Power Brands – 2005 Value & Rating CompanyBrand ValueWorldwide Rank Coca-Cola$67.5 Billion1 of 100 Microsoft$59.9 Billion2 of 100 Disney$26.4 Billion7 of 100 McDonalds$26 Billion8 of 100 Ford$13.1 Billion22 of 100 Google$8.4 Billion38 of 100 Apple$8 Billion41 of 100 Starbucks$2.6 Billion99 of 100 **Business Week The Top 100 Brands August, 2005

12 www.CMGWorldwide.comwww.MarkRoesler.com Celebrities have become powerful brands too… They, too, can have universal recognition (Michael Jordan2 nd Most Recognized face in the world) They also have a high-level of brand equity or value… (Dale, Jr. accounts for 25% of NASCAR licensing revenue) Often times, celebrities evoke a specific and very strong set of feelings, emotions, or vivid associations from their adoring fans…which can result in very high level of sales. ….. Oprah was ranked # 1 on the Celebrity Power 100 in 2005

13 www.CMGWorldwide.comwww.MarkRoesler.com Case Study: Tiger Woods The Brand Good looking, clean-cut, articulate, and scandal free– A marketers dream! Ranked 5 th on the 2006 Forbes Celebrity Power 100 Ranked 5 th on the 2006 Forbes Celebrity Power 100 2005 Earnings were over $90 Million2005 Earnings were over $90 Million Blue chip deals with Nike, Buick, Accenture, American Express, EA Sports, Golf Digest, Net Jets, Tag Heuer, and Upper Deck Blue chip deals with Nike, Buick, Accenture, American Express, EA Sports, Golf Digest, Net Jets, Tag Heuer, and Upper Deck Multi-year deal with Nike in 2000 was reported to be over $105 Million Multi-year deal with Nike in 2000 was reported to be over $105 Million

14 www.CMGWorldwide.comwww.MarkRoesler.com Britney Spears Suddenly a Brand Edgy, Fun, Beautiful Pop Music Star turned brand queen Has own company called Britney Brands Has done endorsements with Pepsi, Proactiv Solution, Got Milk!to name a few The Britney Spears doll broke all records for an individual personality doll, selling six million units at $10 to $15 retail price. Her three fragrances Curious, Fantasy, and In Control are at the top of the marketplace

15 Even Deceased Celebrities are Brands Increasing in Value Marilyn Monroe Elvis www.CMGWorldwide.comwww.MarkRoesler.com

16 Top Earning Dead Celebrities According to Forbes www.CMGWorldwide.comwww.MarkRoesler.com

17 Top-earning deceased celebrities for the year 2005 1. Elvis Presley $45 million 1. Elvis Presley $45 million 2. Charles M. Schulz $35 million 2. Charles M. Schulz $35 million 3. John Lennon $22 million 3. John Lennon $22 million 4. Andy Warhol $16 million 4. Andy Warhol $16 million 5. Theodor Geisel (Dr. Seuss) $10 million 5. Theodor Geisel (Dr. Seuss) $10 million 6. Marlon Brando $9 million 6. Marlon Brando $9 million 7. Marilyn Monroe $8 million 7. Marilyn Monroe $8 million 8. J.R.R. Tolkien $8 million 8. J.R.R. Tolkien $8 million 9. George Harrison $7 million 9. George Harrison $7 million 10. Johnny Cash $7 million 10. Johnny Cash $7 million Millions www.CMGWorldwide.comwww.MarkRoesler.com Source: Forbes.com

18 CMG Worldwide HitsEntire Site (Successful)113,684,408 Average Per Day404,570 Home Page1,219,756 Page ViewsPage Views (Impressions)7,462,258 Average Per Day26,612 Document Views6,508,299 Visitor SessionsVisitor Sessions3,387,637 Average Per Day12,055 Average Visitor Session Length00:09:42 International Visitor Sessions28. 05% Visitor Sessions of Unknown Origin12.67% Visitor Sessions from United States59.26% VisitorsUnique Visitors1,457,184 Visitors Who Visited Once1,163,262 Visitors Who Visited More Than Once293,872 Report Range: 01/01/2004 - 12/31/2004 ChuckBerry.com Web Site Statistics Domain Names have become their new & personal media outlets

19 Summary of Activity by Time Increment CMG Worldwide MarilynMonroe.com Web Site Statistics Visitor sessions

20 Celebrities can use a variety of arrangements to maximize their revenue www.CMGWorldwide.comwww.MarkRoesler.com license agreements license agreements master license agreements master license agreements complete sales of right of publicity or other intellectual property rightscomplete sales of right of publicity or other intellectual property rights These forms include:

21 www.CMGWorldwide.comwww.MarkRoesler.com Terms of a license agreement License agreements can be structured in a variety of different waysLicense agreements can be structured in a variety of different ways Royalty rates and fees can vary greatly dependent upon structureRoyalty rates and fees can vary greatly dependent upon structure Some of the factors involved with outlining the terms of the license include: Breadth of products, territory, distribution restrictions, length of term, exclusivity versus non-exclusivitySome of the factors involved with outlining the terms of the license include: Breadth of products, territory, distribution restrictions, length of term, exclusivity versus non-exclusivity

22 www.CMGWorldwide.comwww.MarkRoesler.com Master License Agreement Master licenses generally cover a broad range of licensing and merchandising rights in relation to the PropertyMaster licenses generally cover a broad range of licensing and merchandising rights in relation to the Property Master licenses usually are significant, exclusive arrangements that typically give the master licensee the right to sublicense.Master licenses usually are significant, exclusive arrangements that typically give the master licensee the right to sublicense. Example: Jessica Simpson and Camuto Consulting GroupExample: Jessica Simpson and Camuto Consulting Group Master license is a worldwide arrangement for most product categories including apparel Master license is a worldwide arrangement for most product categories including apparel Simpson was paid $15 million on the 10- year dealSimpson was paid $15 million on the 10- year deal

23 www.CMGWorldwide.comwww.MarkRoesler.com Outright Sales Outright sales of intellectual property rights are now happening with celebrities Outright sales of intellectual property rights are now happening with celebrities Personality may sell all or part of their intellectual property assets Personality may sell all or part of their intellectual property assets Recent transactions involve Elvis Presley, George Foreman & Muhammad Ali Recent transactions involve Elvis Presley, George Foreman & Muhammad Ali

24 How & Why Do You Value a Celebrity It has become increasingly important and more common place to perform valuations to assign a dollar value to a celebritys portfolio of Intangible intellectual property rights. The need often arises in the following situations: A Publicly Held Company whose image is closely associated with a celebrity (i.e. The George Foreman Grill or Hugh Hefners contribution to Playboy)A Publicly Held Company whose image is closely associated with a celebrity (i.e. The George Foreman Grill or Hugh Hefners contribution to Playboy) A Celebrity DivorceA Celebrity Divorce A transfer of the celebritys Intellectual Property RightsA transfer of the celebritys Intellectual Property Rights Litigation over unauthorized uses of a celebritys Rights Litigation over unauthorized uses of a celebritys Rights www.CMGWorldwide.comwww.MarkRoesler.com

25 Only assets of significance that Mr. Simpson claimed to own where those IP rights associated with his name and likenessOnly assets of significance that Mr. Simpson claimed to own where those IP rights associated with his name and likeness Punitive damages therefore based on a present value of those IP rights.Punitive damages therefore based on a present value of those IP rights. Submitted report stated that Mr. Simpson had a value of $25 million at that time, which represents the exact amount that was awarded by the jury.Submitted report stated that Mr. Simpson had a value of $25 million at that time, which represents the exact amount that was awarded by the jury. In 2006, Fred Goldman asked the court to transfer Simpsons Right of Publicity to Goldman in satisfaction of the Judgement.In 2006, Fred Goldman asked the court to transfer Simpsons Right of Publicity to Goldman in satisfaction of the Judgement. www.CMGWorldwide.comwww.MarkRoesler.com O.J. Simpson Civil Suit

26 World Heavyweight Champ in 1973 and 1994 World Heavyweight Champ in 1973 and 1994 In 1994 Foreman teamed with Salton, a leading home appliance companyIn 1994 Foreman teamed with Salton, a leading home appliance company Under the original deal, Foreman had a right to roughly 60% of the profitsUnder the original deal, Foreman had a right to roughly 60% of the profits In 1999 Salton paid royalties to Foreman of $36 millionIn 1999 Salton paid royalties to Foreman of $36 million In 2001, Foreman sold all of his IP rights in the home appliance category to Salton for $137.5 million.In 2001, Foreman sold all of his IP rights in the home appliance category to Salton for $137.5 million. Salton wanted to make this arrangement so they would own this brand and never have to pay royalties again. Salton wanted to make this arrangement so they would own this brand and never have to pay royalties again. The George Foreman Grill www.CMGWorldwide.comwww.MarkRoesler.com

27 CMG Worldwide What Was Acquired: * On February 7, 2005, CKX, a publicly traded company, acquired an 85% interest in the intellectual property rights owned by the Presley Estate. The transaction included all copyrights owned by the estate, all the trademark rights, and all of the right of publicity associated with Elvis.The transaction included all copyrights owned by the estate, all the trademark rights, and all of the right of publicity associated with Elvis. The transaction also included the tour business, retail operations and hotel operation at Graceland. The transaction also included the tour business, retail operations and hotel operation at Graceland. The transaction did not include any artifacts of Presley, the Graceland Mansion itself or the real estate. The transaction did not include any artifacts of Presley, the Graceland Mansion itself or the real estate. www.CMGWorldwide.comwww.MarkRoesler.com $100 Million Elvis Sale – Shows Value of Deceased celebrity

28 CMG Worldwide Including the prepaid rent, the total value in cash & stock for 85% of the assets sold by the Presley Estate was $111.3 million, meaning that the total valuation for all of those assets were $131 million.Including the prepaid rent, the total value in cash & stock for 85% of the assets sold by the Presley Estate was $111.3 million, meaning that the total valuation for all of those assets were $131 million. In 2004, the year prior to the transaction, the Presley Intellectual Property rights generated $13 million in revenue while the Graceland tour operation, hotel operation and other retail establishments grossed $28 million (but these were really break even business units). In 2004, the year prior to the transaction, the Presley Intellectual Property rights generated $13 million in revenue while the Graceland tour operation, hotel operation and other retail establishments grossed $28 million (but these were really break even business units). The vast majority of the price paid in this transaction was for the intellectual property rights that were purchased.The vast majority of the price paid in this transaction was for the intellectual property rights that were purchased. www.CMGWorldwide.comwww.MarkRoesler.com How The Presley Assets were Valued

29 The latest sale of a celebritys Intellectual Property was in April of 2006 when CKX acquired 80% interest in the IP rights owned by Muhammad Ali for $50 Million cash to AliThe latest sale of a celebritys Intellectual Property was in April of 2006 when CKX acquired 80% interest in the IP rights owned by Muhammad Ali for $50 Million cash to Ali In the 5 previous years, average gross revenue was $5.5 million per year by AliIn the 5 previous years, average gross revenue was $5.5 million per year by Ali Since the $50 million was for 80% of the rights, the total value would be $62 millionSince the $50 million was for 80% of the rights, the total value would be $62 million www.CMGWorldwide.comwww.MarkRoesler.com Muhammad Ali scored one of his biggest wins with a $50 Million Cash Sale of his Intellectual Property Rights

30 CMG Worldwide Diet Coke in 1994 was the first to digitize deceased personalities in a major advertising campaign to interact with current personalities

31 CMG Worldwide Volkswagen in a current TV ad demonstrates how life like and commonplace this technique is

32 CMG Worldwide It is now on at least a par revenue wise to the Movie Industry and is utilizing deceased icons in creative ways as we see here with Marlon Brando The Video Game Industry

33 Celebrities in the Emerging Telecommunication Industry www.CMGWorldwide.comwww.MarkRoesler.com Mobile technology is one of the fastest growing categories in the licensing world Personalities, both living and deceased, are being used on everything from ring tones to screen savers. This license for mobile ring tones and wallpapers bring Marilyn back to life in a fun and light-hearted way to new generations of users that were almost all born AFTER she died.

34 www.CMGWorldwide.comwww.MarkRoesler.com New Movie Opportunies for Deceased Celebrities Laurence Olivier appeared in this major motion picture Sky Captain over 15 years after his death

35 CMG Worldwide If a Man can bridge the gap between life and death…..I mean live on after he has died….then he was a great man …… James Dean 1954

36 www.CMGWorldwide.com For reprints: www.MarkRoesler.com www.MarkRoesler.com


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