Cartoon Network, which is planning to establish its theatrical business in India, sees the merchandising business as a precursor, and would therefore, like to build an expertise in the business. The company will soon launch its animation theatrical business in India, which will include creating own intellectual property rights (IPR). The unit is expected to be operational by 2009. This will include movie production, distribution, licensing and merchandising as well.

So far, all merchandise activities that the company has done were for its own television properties and it did not have hands on experience in movie merchandise. Therefore, since the movie business is already around the corner, Cartoon Network has tied up with the forthcoming Hindi sci-fi film Love Story 2050 for doing the merchandise activities. This Rs 2.5-crore retail project includes apparel, furnishing, toys, publishing and stationery.

Jiggy George, executive director, Cartoon Network Enterprises, said, ?We want to learn this business is because it will be a precursor to our own theatrical business. And consumer products will be a key component for each film that will come out.?

He said that most of the experience have been on the large format television shows and licensing around them. The properties reside anywhere between 2-10 years age group, and so the kind of roll out that is necessary from a consumer products perspective for movie merchandise is a completely different ball-game. The company is keen to learn the nuances of the business and has been watching the Bollywood space closely. ?The key is not just about getting the products in the market but getting it into a wider distribution network like the way we are used to,? said George.

Cartoon Network conducted a study, which revealed that Bollywood and cricket plays very important role in a kid?s life. However, content also plays a vital role in deciding whether the merchandise is palatable for kids. So the Network has taken a conscious decision to go for content which has some twists in the genre including fantasy or sci-fi. So to that extent, Love Story 2050 fitted the bill perfectly.

Cartoon Network Enterprises has developed over 18 types of customised merchandise across five key categories such as publishing, toys, home furnishings, apparel and novelty. These products will be sold under the umbrella of the popular kids? channel Pogo and branded Pogo Inspired.