For character-based toys, the path to scale isn't just selling more dolls; it's creating a universe around them. Following the "Paw Patrol" model, toy brands should prioritize creating animated content (even short, AI-generated clips) that builds emotional connection. The toys then become high-margin merchandise for an engaged audience.
Disney, known for aggressively protecting its IP, is partnering with OpenAI. This pivot acknowledges AI-generated content is inevitable, making proactive licensing a smarter strategy than reactive lawsuits to stay relevant and monetize its vast library of characters in the AI era.
As AI democratizes content creation, the sustainable strategy for creators is to build an IP framework—a world with rules and a vibe—that empowers their community to co-create within it. This shifts the focus from top-down content to fostering a creative ecosystem, as exemplified by Rockstar's Grand Theft Auto.
Lego maintains relevance by replacing over 400 products each year. Their structured creative process blends internal ideas with external cultural trends, leveraging partnerships with major IPs like Star Wars for early insights. This ensures their product roadmap aligns with what will capture kids' future attention.
A traditional toy company facing declining sales can leapfrog the market by integrating conversational AI. This transforms a static product, like a plush doll, into an interactive companion that can answer questions and personalize the experience, creating a new product category and potential for subscription revenue.
The company behind Baby Shark created a $400M enterprise not by owning the song, which is public domain, but by developing unique, licensable cartoon characters around it. This strategy of layering proprietary IP over free content allowed them to generate massive ad revenue and build a licensing empire.
Rather than fighting the inevitable rise of AI-generated fan content, Disney is proactively licensing its IP to OpenAI. This move establishes a legitimate, monetizable framework for generative media, much like how Apple's iTunes structured the digital music market after Napster.
The podcast hosts sell their plush toy not just as a collectible, but as an "economic support animal" for navigating a tough economy. This positions the product as an emotional solution to audience anxiety, creating a deeper connection and a more compelling reason to buy than simple fandom alone.
The next evolution of influencer marketing will be AI-generated personalities. These "fake people" will combine the durable appeal of intellectual property (like a Disney character) with the engagement model of a human influencer. This will create a new class of celebrity owned by companies and creators.
The next marketing wave isn't chasing viral trends, which builds trend recall but not brand recall. Instead, brands must create immersive, episodic 'worlds' that function as standalone entertainment. This shifts the goal from grabbing attention to holding it through compelling, serialized content.
AI tools allow any creative individual to invent and market entire fictional personas. This isn't just a marketing tactic; it's an opportunity to create and own valuable intellectual property (IP), much like a modern-day Walt Disney or Vince McMahon.