It’s all about The Kids.
Thunderbird Entertainment (TBRD-TSXv) just signed a merchandising contract with JAKKS–for their Last Kids On Earth show that will show on Netflix (NFLX) this fall.
JAKKS is a huge player–probably the biggest–in the “merch” game. They do many of the merch deals for Walt Disney (DIS).
These “merch” deals is what gives studio stocks like TBRD their big optionality. CEO Jennifer McCarron explains it to you here:
It’s a great time to be a Tier 1 studio to the multi-billion dollar streaming industry, because the majors are clamoring for the highest quality kids content on their internet channel.
Why? Because it’s the “stickiest” content there is. Five year olds don’t unsubscribe after the last episode of Breaking Bad, House of Cards or Game of Thrones. They watch those cartoon characters over and over and over.
A studios could see have seen their market caps go into the hundreds of millions of dollars–and even into the billions–off just ONE character on a high-flying kids show. Think Harry Potter, Sponge-Bob, or Peppa the Pig.
You must have a great script, great voice actors, a high profile network to show it…and…a toy deal. It’s the merchandise that can create the hundreds of millions in revenue. Producer George Lucas took a piddly salary on his Star Wars franchise, but wanted the merchandising rights–and he became a billionaire very quickly.
Walt Disney’s stock jumped up 20%–to all time highs–in April when they announced their streaming service, Disney Plus. After the success of Netflix stock it’s no wonder.
Investors LOVE this space–and now ThunderBird has its first major toy deal on a high profile show–The Last Kids on Earth–that’s airing on Netflix this fall. And this is just the first! They are constantly developing new children’s content, and it only takes ONE to catch on with kids for TBRD the stock to be a hit as well.
I think that as soon as there’s any public indication the animated show is a hit–TBRD’s stock starts to price in a very successful merch launch.
For TBRD, it’s all about The Kids–The Last Kids On Earth.