Okay, first let me say I really did not need you to reprint what I have read and understand and understand far better than you, and I certainly did not need it highlighted in red like I was three years old, I don't respond well to things like that.
Okay let me teach you a little something about licensing agents and how/why/what they do and how they get paid.
Licensing agents are brought in to sell or increase sales of a brand or company such as the case is with Genius Brands and Psycho Bunny. They do what a brand/entity either cannot do or doesn't want to do, because their tasks have a wide range.
No matter who the "underlying owner is of the brand/name/rights etc" who owns the "underlying rights" means absolutely nothing at all I don't care if God owns them, they are still contracted to do something and for this they are to receive compensation.
In the case of licensing agents they 9 times out of ten receive a royalty or a commission, they most certainly never do it for nothing or receive nothing.
Penguin Young Readers is the subsidiary/subdivision of Penguin Books they are one in the same in this instance, they are allowed to make a deal and the parent company will hold to, and honor the deal because by law they have to.
For genius brands to have been signed as a licensing agent they had to have something to license something they want to increase sales of, in this case the published and unpublished series of books by AD the books published by Penguin Young Readers.
Licensing especially when it comes to commercial entertainment has many children and they all have/want to eat, and they all will eat in perpetuity, that is how licensing agent contracts are done or written.
That way you get paid, you make something, for doing what you did and aren't shoved out of the room when the guests arrive and the party is getting ready to start.
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BTW In this post RD is Reed Duncan and AD is the lady Anna Dewdney
One hand washes the other and all deals are different in their workings, percentages etc and. as you stated so well for the first 10 years the book series on average sold 1 million copies per year for 10 years, 2006 to 2016.
Do you know how many books titles were published in between the time of the article when Ms. AD passed and the cartoon series was done ready for debut? "one"
And in that time From 2016 to late 2017 do you know how many books were sold? Not a lot, probably the same 1 million copies maybe a little less maybe a little more..
Guess what? In the 18 months after the licensing agent deal was struck do you know how many copies f the book were in print? 20 million. Went from 11 million to 20 million in 18 months and was then printed in 20 countries (now 22).
Royalties/commission are always part of a licensing agent deal it gives them incentive. You honestly in your mind feel that without Genius brands, their licensing agent doing what they did, getting people to help finish the books, and do a series, and promote the books over seas, and adding dozens of retailers and they get a thank you and that is it? Naive, not in this world, not in business of any kind.
This property needed to be
A) continued, the other titles that this fellow said he had (I believe half he wrote but no matter) so genius was brought in to get that and although we have no idea how the deal was written who got what who did what etc the fact remains it was Genius's job as a licensing agent to get that done.
By way of (which they did, tremendously) helping finish the books they had and do a cartoon series to promote it and to license products into new categories, new retailers for their books and to new territories like getting them printed and crating a deman in other countries, which Genius did and did an overwhelmingly good job.
Okay from your post which you felt the need to point out to me as if I were three and unawre.
In the fourth paragraph (not forth)
Quote
Duncan says there are about a dozen books in various stages of development and at least 30 more that could one day be published. “Some projects have fully painted canvases, some have lots of heavily rendered sketches, and some have only loose sketches on the backs of envelopes,” Duncan says. Other projects have no art at all, and Duncan says he may have to hire someone to finish them.
Penguin Young Readers did just that, they got Genius Brands to undertake getting that done and to increase the sales of the "book series" in it's entirety, that is how licensing agent deals work.
As you also pointed out with the highlighted in red post this is how Genius Brands was to do it (increase the sales of the book series, all the book series)
by "leveraging our existing licensing infrastructure to expand this brand into new product categories, new retailers, and new territories."
And they have done a damn fine job of it and continue to do so, every network deal, every new country the cartoon series is shown, every Llama Llama Live Tour musical show, every Meet Llama Llama in person tour, every product they help create, license etc increases the sale of the book series all of it. Why else be the licensing agent?
They did the same for Psycho Bunny, they got them into Europe, Panama South America etc, go back and read the first PRs they built/promoted the brand. Now that is paying off for them in the case of psycho Bunny where in Q1 2019 they got their first significant royalty check since they became the licensing agent and will now after the 2019 with another 9 stores added with their first 5 in the US they will receive even more $$ and next year more money. Why do you think they did it?
The also were the licensing agents for "Dear Frank"? and The smell company sorry on the tip of my tounge "C" something, has not worked with them yet, may never but they have been actively at it for years and if/when it pays off they will get a piece of the pie in perpetuity by way of royalties as that is how licensing agents get paid.
You were confusing "how" they were to do it with what they would do for their money maybe? I haven't a clue, what you were thinking.
You also said that licensing agent deals for books starts at 10%, I am sorry but that is not even close. more like 1/2 a percent or a percent or 2 percent depending on the deal the existing brand etc. And that is either a percentage of profits or sales.
Writers may receive 10% of sales or profits of their book sales, writers agents may receive 10% of what their writer receives but licensing agents do not get 10% or anywhere near it.
I the entertainment game as I mentioned many want to eat each get a different size portion and from different portions be it profits or sales.
My only question was do they receive the same for books when they come out now or in the future that have zero to do with RD or AD like books based on any of the episodes the writers etc. they brought together to do the cartoon series or do they receive a different percentage of the book sales for those books.
As RD said the books/ideas had many forms,
“Some projects have fully painted canvases, some have lots of heavily rendered sketches, and some have only loose sketches on the backs of envelopes,” Duncan says. Other projects have no art at all, and Duncan says he may have to hire someone to finish them."
That's it, is there different percentages for existing titles, partially done titles with art, titles without art, or titles they (RD and AD) had zero to do with.
But, you coming back saying they get nothing of what they were brought in to do FOR Penguin Young Readers the subsidiary of Penguin Books which was increase sales and promote the brand is ludicrous and naïve.
What they get is another story as Genius got a little something on the deal too, and "idea" a book series that was withering to run with, partial books/ideas to finish etc.
I hope you are better with your negotiations in life my friend than you imagined Genius Brands was, if not you have/ have had a tough row to hoe in life.
You know who lese gets a little piece of that pie maybe 1/10 a percent the writers that helped finish, the artists who came up with/developed the new image and the new characters and images of said characters.
In all the 10K's/10Qs is states in there that different people get little pieces of everything that is how the business works, it gets people A) to take a leap of faith at a lower price (Like the governator taking GNUS stock and not pay for Superhero Kindergarten) but, in doing so they share in the success if everyone does their job and what they are trying to do they all get some on the back end.
Which in this licensing agent deal is the increase of the book series in sales, retailers, and new territories (countries) how could you even think they don't get anything for doing their job? Sorry, that is how it works.
By the way, its a hell of a damn job they are doing isn't it both for Llama Llama and Psycho Bunny.
I could go on and on but hopefully you can understand now, if not, so be it.
It is what it is, Psycho Bunny continues to grow to 100-500 stores Genius Brands royalties will increase for all the work they did getting them there. Llama Llama continues to rocket in popularity so shall the book sales in more and more countries etc and their piece will grow too it is what it is, no matter what you think or understand.
Without genius there would not have been another 21 titles, 9 million books in print (almost double) and growing and Genius will benefit its just how much and how much for differing books/titles and Genius's involvement in the development of the books, but they get they get a piece of it ALL, you can rest assure of that. 1/4 a percent of sales, half a percent a whole percent or two percent but getting nothing...……….never happen.
Now one other thing and then I never wish to speak about any of this to you or krit/kril about any of it, again, ignore me like I am not even there, I am ambivalent to you now.
You keep pointing out well that Llama Llama Live I never expected much $$ out of that, and that go see Llama Llama and have your picture taken with him deal for $25 I never thought they would make much on that, and that bike I never though much on that, and those 6 costumes I never really thought they would make much on that, and all the clothing sales I never really thought they would make much on that, and the books for Rainbow Rangers do their really sell any I didn't think they would get much from thatm and Youtube impressions I never really though they would get much money for that, and the Google Play, and Apple TV and Amazon prime $1.99 each I never expected much $$ on that, and the impressions on all the free apps and platforms I never expected much on that, and the Christmas decorations never expected much on that and the arty supplies by two manufacturers never expected much $$ on that, and the 4 DVD's in 2 months never expected mush on them and the Book bag set how much money is that really, and t-shirts in 5 designs can that really any money, and those damn school, pencils, notebooks, folders, erasers, pencil bags, journals and the licensing for genius networks advertising yeah its way up will be up 300% this year but that isn't much money and how much can they really make off selling wipe and clean activity books Scholastic put out really, and the subsriptions they get a piece of that isn't alot, and the two wooden puzzles put out by Kids Preffered how much is that really not alot, and they Xmas stocking really you think that is any money, the Llama Llam learn to dress doll how much could that be not much I bet and the Llama Llama nighty night doll bet hardly any sold, and the Llama Lama busy day soft book, really what could that amount to, and the Cuddle Barn - Llama Llama Red Pajama and Mama Llama Set of 2 Talking Plush Miniature Toy Lama Squeezers, Holiday Llama Mama Talking Plush Doll, Hug the Belly - Llama Llama Red Pajama Book Bundle with Large Stuffed Animal Llama 13.5" and Llama Llama Red Pajama Board Book, do they sell a lot cannot be that much, the coloring books, bathing suits, grab and go play packs and the rest lets not even talk about because jeez sounds like he knows what he is talking about but, so what how much is 1/2 or 3/4% for thos books and 1% for the others and don't even no how mch for ones that are totall GNUS produced none of them really make much.
That is your problem, you cannot see the forest because you are staring at the single trees, all that there added people paying up $1000 for a damn ticket to a musical that is having dates added daily all since the end of August and you two sit here and say I bet they don't make hardly anything for Q4 how could they. SMH and wondering in amazement. probably should just forget the fact they will be close if not hit the CEOs goal of near 10 mil rev this year and maybe double their only other decent year total for 5.3 mil I mean damn they have 5.1 mil through the first 9 months, but to you too, it means nothing, its no money.
I step back and look at all the trees and with Superhero Kindergarten and the way Llama Llama is growing and RR too I may not see the $50 mil the CEO sees for this year.....YET but I can envision 30 millon already for 2020, but then again I don't know what pans are in the fire, how much Alibaba will contribute I guess we will get a feel for that when we find out how much Alibaba's 7 figure investment is with their partnership and what that means $$ wise as in what will be coming in from the jump for Superhero Kindergarten or Llama Llama or Rainbow Rangers.
That is what t is about the sum of the total not individual and as long as it keeps growling by leaps and bounds as it has the last 6 months, forget about it, chaching
This is a sleeper stock, just like Avita was, watch and learn.
Peace out.
