1 00:00:09,800 --> 00:00:14,000 Speaker 1: Welcome to Strictly Business, Variety's weekly podcast featuring conversations about 2 00:00:14,040 --> 00:00:17,640 Speaker 1: the business of media and entertainment. I'm senior business writer, 3 00:00:17,800 --> 00:00:21,600 Speaker 1: TV and Video Games Jennifer Moss with the New York 4 00:00:21,640 --> 00:00:24,279 Speaker 1: Toy Fair kicking off this weekend. Today, we're speaking with 5 00:00:24,360 --> 00:00:27,800 Speaker 1: new Funko CEO Josh Simon to discuss this strategy behind 6 00:00:27,840 --> 00:00:30,640 Speaker 1: one of the most iconic brands in the collectibles industry, 7 00:00:31,600 --> 00:00:34,680 Speaker 1: from navigating involving consumer trends to driving growth in a 8 00:00:34,760 --> 00:00:39,400 Speaker 1: highly competitive market, Josh, formally Netflix's head of Consumer Products, 9 00:00:39,800 --> 00:00:42,280 Speaker 1: offers a behind the scenes look at his strategy for 10 00:00:42,320 --> 00:00:49,920 Speaker 1: the company less than a year after taking over a CEO, Nash, 11 00:00:49,960 --> 00:00:52,680 Speaker 1: thank you so much for joining me for Strictly Business Today. 12 00:00:52,880 --> 00:00:55,320 Speaker 1: Happy to have you here as the CEO of Funko. 13 00:00:55,440 --> 00:00:59,200 Speaker 2: Now, thanks for having me. I'm I'm about five months in, 14 00:00:59,440 --> 00:01:00,880 Speaker 2: five or six months into the role. 15 00:01:02,360 --> 00:01:04,840 Speaker 1: Let's go back to even before that, about your time 16 00:01:04,840 --> 00:01:07,759 Speaker 1: before Funko, your time at Netflix and where you were previously. 17 00:01:08,080 --> 00:01:12,399 Speaker 2: For sure, well before immediately before Funko, I was running 18 00:01:12,440 --> 00:01:17,880 Speaker 2: the consumer products and Live Experiences division at Netflix. And 19 00:01:18,080 --> 00:01:20,200 Speaker 2: you know, before that, my career was sort of a 20 00:01:20,240 --> 00:01:25,639 Speaker 2: combination of content and media and the consumer products world. 21 00:01:25,720 --> 00:01:29,000 Speaker 2: So you know, I made movies at Disney many many 22 00:01:29,080 --> 00:01:32,959 Speaker 2: years ago on the live action film side of things, 23 00:01:33,319 --> 00:01:36,320 Speaker 2: also at a production company and DreamWorks, worked at Nike 24 00:01:36,600 --> 00:01:40,040 Speaker 2: across product globally so footwear and apparel, and worked in 25 00:01:40,120 --> 00:01:43,720 Speaker 2: food and beverage, and then was also a Netflix. So 26 00:01:44,160 --> 00:01:47,320 Speaker 2: you know, I have this sort of fun combination of 27 00:01:47,360 --> 00:01:51,320 Speaker 2: seeing how pop culture and culture in general can be 28 00:01:51,480 --> 00:01:54,560 Speaker 2: translated into products of all shapes and sizes. 29 00:01:55,560 --> 00:01:56,360 Speaker 3: Time will tell. 30 00:01:56,800 --> 00:02:00,760 Speaker 1: Time will tell over the short period of time that 31 00:02:00,800 --> 00:02:02,640 Speaker 1: it's been already. You know, I'd like to know what 32 00:02:02,720 --> 00:02:06,559 Speaker 1: you've just seen and what you're hoping to change, because 33 00:02:06,560 --> 00:02:09,640 Speaker 1: there have been conversations around and just difficulties within the 34 00:02:09,720 --> 00:02:12,960 Speaker 1: industry at large, but in particular with Funko talking about 35 00:02:13,000 --> 00:02:15,560 Speaker 1: sustainability of that kind of business and what that means 36 00:02:15,600 --> 00:02:16,160 Speaker 1: moving forward. 37 00:02:16,360 --> 00:02:19,800 Speaker 2: Well, it's a great question. From my time at Netflix, 38 00:02:20,120 --> 00:02:22,359 Speaker 2: I was able to work a lot with Funko. They 39 00:02:22,360 --> 00:02:25,040 Speaker 2: were one of our biggest partners there, and you know, 40 00:02:25,040 --> 00:02:27,680 Speaker 2: one of the things that I always saw was, you know, 41 00:02:27,680 --> 00:02:31,359 Speaker 2: we would meet with filmmakers, directors, creators, you know, some 42 00:02:31,400 --> 00:02:34,600 Speaker 2: of like the biggest names in entertainment around the world. 43 00:02:34,919 --> 00:02:38,960 Speaker 2: We'd present these very elaborate consumer products plans, you know, 44 00:02:39,000 --> 00:02:43,160 Speaker 2: across multiple categories. Inevitably, like the first question I would 45 00:02:43,200 --> 00:02:45,800 Speaker 2: get asked from them is are we getting a Funko Pop? 46 00:02:46,040 --> 00:02:48,560 Speaker 2: Like is are we getting a funk O Pop for 47 00:02:48,639 --> 00:02:52,040 Speaker 2: our characters? And in many cases, like personally, you know, 48 00:02:52,120 --> 00:02:54,520 Speaker 2: from a director or actor, am I getting a funk 49 00:02:54,520 --> 00:02:56,639 Speaker 2: O Pop? So, you know, I think it's it had 50 00:02:56,720 --> 00:02:59,960 Speaker 2: become this sort of like seal of approval that you 51 00:03:00,200 --> 00:03:02,800 Speaker 2: made it in you know, in entertainment when you got 52 00:03:02,800 --> 00:03:05,880 Speaker 2: that you know, collectible pop figure that could sit on 53 00:03:05,919 --> 00:03:09,160 Speaker 2: a shelf somewhere, and you know that magic is definitely 54 00:03:09,200 --> 00:03:14,280 Speaker 2: something that I want to preserve. And that sort of 55 00:03:14,280 --> 00:03:17,840 Speaker 2: like energy and enthusiasm that fans and creators have for 56 00:03:17,919 --> 00:03:21,919 Speaker 2: the brand is definitely a really important element of growing 57 00:03:22,000 --> 00:03:26,200 Speaker 2: the business as well. Like there are I would say, 58 00:03:26,280 --> 00:03:29,240 Speaker 2: kind of few brands in the consumer products and the 59 00:03:29,240 --> 00:03:33,160 Speaker 2: toy space that have achieved the level of ubiquity that 60 00:03:33,400 --> 00:03:37,280 Speaker 2: the Funko Pop figure has. Last year we hit a 61 00:03:37,360 --> 00:03:42,240 Speaker 2: milestone of a billion Funko Pops sold, and which puts 62 00:03:42,320 --> 00:03:45,680 Speaker 2: us in pretty rare territory with you know, some of 63 00:03:45,720 --> 00:03:49,240 Speaker 2: the biggest toy brands out there. So I think we've 64 00:03:49,480 --> 00:03:52,520 Speaker 2: you know, the companies really established something that's pretty ownable. 65 00:03:52,880 --> 00:03:55,240 Speaker 2: It's a unique silhouette, you know, and it kind of 66 00:03:55,280 --> 00:03:59,360 Speaker 2: stands on its own alongside brands like Lego and Barbie 67 00:03:59,440 --> 00:04:02,520 Speaker 2: and those things that like consumers immediately recognize, you know 68 00:04:02,520 --> 00:04:03,120 Speaker 2: when they see it. 69 00:04:03,720 --> 00:04:05,360 Speaker 1: I know you've been in this role for a short 70 00:04:05,360 --> 00:04:08,160 Speaker 1: period of time, but you've seen the success of Fungo 71 00:04:08,440 --> 00:04:11,720 Speaker 1: from partnerships previously. So, like you said, during your time 72 00:04:11,720 --> 00:04:14,560 Speaker 1: at Netflix, you were a big part of the Stranger 73 00:04:14,600 --> 00:04:16,800 Speaker 1: Things phenomenon and working with the Duffer brothers on that 74 00:04:16,920 --> 00:04:20,120 Speaker 1: merchandising and those experiences. And I know Stranger Things has 75 00:04:20,160 --> 00:04:24,159 Speaker 1: a special relationship with Funko. It is huge. So can 76 00:04:24,200 --> 00:04:25,839 Speaker 1: you dissect that a little bit and what that was 77 00:04:25,880 --> 00:04:27,640 Speaker 1: like for you to work on it from the Netflix 78 00:04:27,640 --> 00:04:29,520 Speaker 1: side and to know what it's like on the inside 79 00:04:29,560 --> 00:04:30,080 Speaker 1: at Funko. 80 00:04:30,160 --> 00:04:32,880 Speaker 2: Now, Yes, well, it is true. It's sort of in 81 00:04:32,920 --> 00:04:36,920 Speaker 2: that sort of full circle moment. Actually, the very first 82 00:04:37,800 --> 00:04:43,279 Speaker 2: product consumer product merchandise that Netflix did was from the 83 00:04:43,279 --> 00:04:45,640 Speaker 2: world of Stranger Things, and it was a Funko Pop 84 00:04:45,880 --> 00:04:50,880 Speaker 2: Stranger Things Funko Pop. I believe an eleven character. So 85 00:04:51,160 --> 00:04:53,640 Speaker 2: it's been fun to kind of have that history and 86 00:04:53,680 --> 00:04:56,360 Speaker 2: then you know, and then come full circle. Yeah, and look, 87 00:04:56,400 --> 00:04:58,800 Speaker 2: I think you know what was amazing about Stranger Things 88 00:04:58,880 --> 00:05:01,480 Speaker 2: is the Duffer brothers and Sean Leevy, I mean, are 89 00:05:01,720 --> 00:05:06,800 Speaker 2: so incredibly talented at, you know, creating these highly detailed worlds, 90 00:05:06,960 --> 00:05:10,000 Speaker 2: and in some ways, you know, because of the specific 91 00:05:10,080 --> 00:05:13,320 Speaker 2: time period that you know, was related to, there were 92 00:05:13,360 --> 00:05:18,200 Speaker 2: these really great organic ways that products were incorporated in 93 00:05:18,240 --> 00:05:21,080 Speaker 2: the storyline, and there were fun ways of commercializing that. 94 00:05:21,120 --> 00:05:23,080 Speaker 2: You know, obviously they were you know, there were plot 95 00:05:23,120 --> 00:05:27,320 Speaker 2: points that involved light Bright and Aggo Waffles and those 96 00:05:27,320 --> 00:05:31,159 Speaker 2: things that naturally kind of translated into products themselves. And 97 00:05:31,200 --> 00:05:34,560 Speaker 2: then at the same time, we had some fun commercializing 98 00:05:34,839 --> 00:05:38,679 Speaker 2: fictional brands that were created within the show. So Scoops 99 00:05:38,720 --> 00:05:41,400 Speaker 2: Ahoy ice cream was a brand that was made up. 100 00:05:41,400 --> 00:05:43,800 Speaker 2: It was a fictional brand from the series from one 101 00:05:43,800 --> 00:05:46,800 Speaker 2: of the earlier seasons. We had turned that into an 102 00:05:46,880 --> 00:05:51,040 Speaker 2: actual brand of ice cream that launched at Walmart around 103 00:05:51,240 --> 00:05:52,560 Speaker 2: the country and then you know. 104 00:05:52,600 --> 00:05:54,040 Speaker 3: Retail stores all over the world. 105 00:05:54,120 --> 00:05:58,200 Speaker 2: Thereafter season four Stranger Things, there was this great brand 106 00:05:58,240 --> 00:06:01,880 Speaker 2: called Surfer Boy Pizza that we actually turned into a 107 00:06:01,920 --> 00:06:04,839 Speaker 2: frozen pizza brand as well. So you know, look, I 108 00:06:04,839 --> 00:06:07,440 Speaker 2: think what was key to all of that was there's 109 00:06:07,480 --> 00:06:10,479 Speaker 2: a level of you know, authenticity that we tried to 110 00:06:10,920 --> 00:06:13,240 Speaker 2: you know, preserve to the world and the products, and 111 00:06:13,440 --> 00:06:16,359 Speaker 2: you know, we always made sure like the packaging, you know, 112 00:06:16,480 --> 00:06:19,599 Speaker 2: really reflected what it would look like if this thing 113 00:06:19,680 --> 00:06:23,000 Speaker 2: came to life for real. You the fans of Stranger 114 00:06:23,040 --> 00:06:26,320 Speaker 2: Things are so passionate and so into the details, and 115 00:06:26,360 --> 00:06:29,120 Speaker 2: they love talking about you know, their opinions are these 116 00:06:29,160 --> 00:06:31,440 Speaker 2: things on Reddit and online, and so you know, we 117 00:06:31,560 --> 00:06:34,080 Speaker 2: really wanted to make sure that we were staying true 118 00:06:34,160 --> 00:06:36,159 Speaker 2: to these the sort of world and the details of 119 00:06:36,200 --> 00:06:38,320 Speaker 2: the world that the Duffers created. 120 00:06:38,560 --> 00:06:41,520 Speaker 1: When it comes to production at Funko, you know, the 121 00:06:41,560 --> 00:06:44,560 Speaker 1: way you described that that's Stranger Things is obviously top 122 00:06:44,560 --> 00:06:47,040 Speaker 1: of mind and it's a it's a new and interesting thing, 123 00:06:47,200 --> 00:06:50,240 Speaker 1: But Funko spans the gamut with what you all turn 124 00:06:50,360 --> 00:06:52,920 Speaker 1: into Funko pops, right, Like I could have that on 125 00:06:53,040 --> 00:06:55,520 Speaker 1: my shelf, I could have a cartoon from the seventies 126 00:06:55,560 --> 00:06:58,280 Speaker 1: also represented. So I want to know how you kind 127 00:06:58,320 --> 00:07:02,520 Speaker 1: of prioritize what the production pipeline looks like in terms 128 00:07:02,560 --> 00:07:05,200 Speaker 1: of new shows coming out, and then what you think 129 00:07:05,240 --> 00:07:07,560 Speaker 1: will be hit with people right now? What are things 130 00:07:07,560 --> 00:07:09,920 Speaker 1: from decades ago? I know you guys had to jump 131 00:07:09,960 --> 00:07:12,040 Speaker 1: on K pop Demon Hunters when it came out was 132 00:07:12,080 --> 00:07:12,360 Speaker 1: a hit. 133 00:07:12,600 --> 00:07:15,080 Speaker 2: Yeah, well there's a few dimensions to that, and it's 134 00:07:15,080 --> 00:07:18,680 Speaker 2: definitely an art and a science. I mean, you know, 135 00:07:18,720 --> 00:07:20,680 Speaker 2: when I step back from it and we talk about 136 00:07:20,760 --> 00:07:22,880 Speaker 2: what the goal is of what we do at funk Go, 137 00:07:23,080 --> 00:07:25,200 Speaker 2: for me, it's really about, you know, how do we 138 00:07:25,280 --> 00:07:29,600 Speaker 2: turn pop culture into collectibles and collectibles into pop culture 139 00:07:29,800 --> 00:07:32,280 Speaker 2: and what's you know, what's great about pop is it 140 00:07:32,320 --> 00:07:36,520 Speaker 2: really serves as this canvas for any genre of any 141 00:07:36,680 --> 00:07:43,239 Speaker 2: of entertainment, you know, any type of storytelling across sports, music, obviously, entertainment, anime, 142 00:07:43,520 --> 00:07:47,160 Speaker 2: you name it. And so first and foremost, like we 143 00:07:47,200 --> 00:07:49,120 Speaker 2: want to be at the center of what fans are 144 00:07:49,160 --> 00:07:51,800 Speaker 2: talking about, and that's kind of the first you know, 145 00:07:51,880 --> 00:07:55,400 Speaker 2: threshold that we think about it. Ideally, we're also doing 146 00:07:55,400 --> 00:07:58,240 Speaker 2: it while they're actually talking about it as well. 147 00:07:58,400 --> 00:08:00,600 Speaker 3: This, you know, and the other element to it as well. 148 00:08:00,440 --> 00:08:03,360 Speaker 2: Which is really creatively, you know, what we have is 149 00:08:03,400 --> 00:08:06,440 Speaker 2: a stylized product. So in addition to the fact that 150 00:08:06,520 --> 00:08:08,240 Speaker 2: like we want to be at the center of those 151 00:08:08,280 --> 00:08:11,680 Speaker 2: pop culture stories. You know, creatively, we have to think 152 00:08:11,680 --> 00:08:13,360 Speaker 2: about is there a way that we can kind of 153 00:08:13,400 --> 00:08:15,880 Speaker 2: stylize it in a way We're not just taking you know, 154 00:08:15,960 --> 00:08:20,400 Speaker 2: the exact look and feel of a character and making 155 00:08:20,560 --> 00:08:22,920 Speaker 2: you know, an exact scaled replica of it. There's a 156 00:08:22,920 --> 00:08:24,840 Speaker 2: lot of creative license we have to take, and so 157 00:08:24,920 --> 00:08:28,160 Speaker 2: we're oftentimes looking for ways that we can put that 158 00:08:28,640 --> 00:08:32,800 Speaker 2: interesting spin on it. The crazy thing is that we have, 159 00:08:32,880 --> 00:08:35,319 Speaker 2: I would say think it's almost close to a thousand 160 00:08:35,480 --> 00:08:39,160 Speaker 2: active licenses across you know, all of these genres that 161 00:08:39,320 --> 00:08:41,920 Speaker 2: you know that you can imagine, and so we have 162 00:08:41,960 --> 00:08:45,600 Speaker 2: a team of people who really far upstream are working 163 00:08:46,120 --> 00:08:49,080 Speaker 2: with all the movie studios. You know, we have deals 164 00:08:49,120 --> 00:08:52,480 Speaker 2: with Disney and Universal and Warners and Netflix, et cetera. 165 00:08:52,880 --> 00:08:56,040 Speaker 2: We're looking at, you know, calendars of cultural moments like 166 00:08:56,120 --> 00:08:58,480 Speaker 2: the Super Bowl or you know, the World Cup, which 167 00:08:58,520 --> 00:09:00,960 Speaker 2: is you know upcoming this year, the Grammys, you know, 168 00:09:01,000 --> 00:09:04,680 Speaker 2: as another more recent example, what musical artists are going 169 00:09:04,720 --> 00:09:07,360 Speaker 2: on tour and when, and then you know, we're talking 170 00:09:07,400 --> 00:09:10,160 Speaker 2: to that creative talent at the same time where you know, 171 00:09:10,200 --> 00:09:12,880 Speaker 2: we're coming up with ideas and figuring out, you know, 172 00:09:12,920 --> 00:09:17,920 Speaker 2: how do we create these elements that allow fans to 173 00:09:18,040 --> 00:09:21,920 Speaker 2: experience these cultural touchstones through a physical product? 174 00:09:22,240 --> 00:09:24,040 Speaker 1: Good and bad to a physical product? Is it a 175 00:09:24,040 --> 00:09:26,880 Speaker 1: physical product? And by that I mean I can hold it, 176 00:09:27,160 --> 00:09:29,000 Speaker 1: I can play with it, I can look at it. 177 00:09:29,480 --> 00:09:30,520 Speaker 3: But it takes up space. 178 00:09:30,960 --> 00:09:33,800 Speaker 1: Yes, And so I have to hear economical in a 179 00:09:33,840 --> 00:09:36,319 Speaker 1: New York apartment here with how many funks those I 180 00:09:36,320 --> 00:09:38,520 Speaker 1: can own? What my favorites are, where I put them? 181 00:09:38,559 --> 00:09:40,480 Speaker 1: How that works? How do you look at that from 182 00:09:40,520 --> 00:09:43,400 Speaker 1: a business perspective in terms of there are only so 183 00:09:43,559 --> 00:09:45,080 Speaker 1: many I can house. 184 00:09:45,480 --> 00:09:47,960 Speaker 3: I would debate, I would I would debate you on 185 00:09:48,040 --> 00:09:51,360 Speaker 3: that debatable. Let's still yeah. 186 00:09:51,400 --> 00:09:53,520 Speaker 1: But from that standpoint, how you will look at the 187 00:09:53,600 --> 00:09:56,839 Speaker 1: average Fuco customer or the ideal Funko customer. Is it 188 00:09:56,920 --> 00:09:59,800 Speaker 1: a repeat customer? How repeat are we talking? And what 189 00:09:59,880 --> 00:10:01,240 Speaker 1: is sustainability of that? 190 00:10:01,480 --> 00:10:03,839 Speaker 2: Well, look, there's a couple dimensions to that. I mean, 191 00:10:03,880 --> 00:10:06,680 Speaker 2: first of all, right, now we're really at the center 192 00:10:06,840 --> 00:10:10,880 Speaker 2: of a kind of amazing evolution in consumer trends when 193 00:10:10,920 --> 00:10:14,160 Speaker 2: it comes to the toy industry. So you know, currently 194 00:10:14,240 --> 00:10:18,040 Speaker 2: about one in six toys that are sold fall into 195 00:10:18,120 --> 00:10:22,520 Speaker 2: the collectibles category, and that's grown by almost thirty percent 196 00:10:22,840 --> 00:10:25,679 Speaker 2: last year, so it's a it's a high growth category. 197 00:10:25,880 --> 00:10:28,160 Speaker 2: The other thing I'd say is on the licensed piece 198 00:10:28,200 --> 00:10:30,720 Speaker 2: of that category, so meaning you know, sort of licensed 199 00:10:30,720 --> 00:10:35,680 Speaker 2: DIEP versus original license is like outperforming all the other 200 00:10:35,920 --> 00:10:40,240 Speaker 2: categories of toys by close to ten or twenty percentage points. 201 00:10:40,480 --> 00:10:42,480 Speaker 2: And then I would say that the last sort of 202 00:10:42,559 --> 00:10:45,120 Speaker 2: like you know, the third corner of that triangle is 203 00:10:45,160 --> 00:10:48,720 Speaker 2: this crazing you know what everyone is calling adult. You know, 204 00:10:48,840 --> 00:10:50,920 Speaker 2: so sort of like adults who are you know, who 205 00:10:50,920 --> 00:10:54,360 Speaker 2: are buying toys? You know, last year, close to forty 206 00:10:54,400 --> 00:10:58,480 Speaker 2: percent of adults bought toys for themselves. And if you 207 00:10:58,520 --> 00:11:01,840 Speaker 2: even kind of break it down into further cohorts, about 208 00:11:01,880 --> 00:11:06,280 Speaker 2: sixty five percent or so of eighteen thirty four year 209 00:11:06,280 --> 00:11:09,920 Speaker 2: olds bought a toy for themselves or for another adult 210 00:11:10,040 --> 00:11:13,080 Speaker 2: last year. It's you know, it's as a category, it's 211 00:11:13,160 --> 00:11:15,839 Speaker 2: growing and so I think, you know, that's why I 212 00:11:15,840 --> 00:11:17,920 Speaker 2: would debate you on how much free space you have 213 00:11:18,040 --> 00:11:20,920 Speaker 2: in your you know, in in your apartment, because I 214 00:11:20,920 --> 00:11:23,200 Speaker 2: think you know, ultimately people are fighting, you know, are 215 00:11:23,240 --> 00:11:26,160 Speaker 2: finding space for these things, and you know, look, I 216 00:11:26,200 --> 00:11:30,360 Speaker 2: think as the world continues to become more digital and 217 00:11:30,440 --> 00:11:33,160 Speaker 2: online and you know, on social media. I think the 218 00:11:33,280 --> 00:11:36,319 Speaker 2: counter to that is that there's there's almost more value 219 00:11:36,480 --> 00:11:39,520 Speaker 2: for something that's physical and tangible and that you can 220 00:11:39,600 --> 00:11:41,959 Speaker 2: hold and that you can gift, and like just when 221 00:11:42,000 --> 00:11:44,760 Speaker 2: you look at the proliferation of content and how quickly 222 00:11:44,840 --> 00:11:47,320 Speaker 2: you know, you can kind of swipe through something on 223 00:11:47,400 --> 00:11:51,480 Speaker 2: TikTok or Instagram, capturing that moment in a physical way 224 00:11:52,080 --> 00:11:55,680 Speaker 2: I think becomes increasingly important to consumers. So you know, 225 00:11:55,800 --> 00:11:58,439 Speaker 2: ultimately it's a pretty big world out there, and I 226 00:11:58,480 --> 00:12:00,679 Speaker 2: would and I think that the trend end of that 227 00:12:00,760 --> 00:12:04,400 Speaker 2: sort of physical ownership and capturing those moments in physical 228 00:12:04,440 --> 00:12:05,800 Speaker 2: form is only going to continue. 229 00:12:06,040 --> 00:12:09,120 Speaker 1: Is some of that thinking going into strategy and marketing 230 00:12:09,200 --> 00:12:13,200 Speaker 1: for how you continue to pitch consumers on this, especially 231 00:12:13,320 --> 00:12:16,640 Speaker 1: during economic kurdles and with where things stand right now, 232 00:12:17,160 --> 00:12:19,280 Speaker 1: I only have so much money to spend, Why would 233 00:12:19,280 --> 00:12:20,679 Speaker 1: I spend it on a funko kind of thing? 234 00:12:20,800 --> 00:12:23,240 Speaker 2: I think, look for us, at least on the funko side, 235 00:12:23,280 --> 00:12:25,960 Speaker 2: I would say, from a price point stand a standpoint, 236 00:12:26,120 --> 00:12:31,320 Speaker 2: we span a pretty wide spectrum, and I'd say, generally speaking, 237 00:12:31,480 --> 00:12:34,839 Speaker 2: you know, try and exist in a pretty affordable zone. 238 00:12:34,920 --> 00:12:37,520 Speaker 2: So the you know, for us, like the core Funko 239 00:12:37,679 --> 00:12:42,640 Speaker 2: Pop that everyone knows and loves is at retail prices 240 00:12:42,679 --> 00:12:45,240 Speaker 2: around fifteen dollars. There's you know, there's some that are 241 00:12:45,280 --> 00:12:48,360 Speaker 2: a bit more expensive, depending on the size and the 242 00:12:48,440 --> 00:12:51,360 Speaker 2: amount of you know, detail that goes into them. We 243 00:12:51,440 --> 00:12:55,480 Speaker 2: introduced a couple of years ago a line called Biddy Pop, 244 00:12:55,520 --> 00:12:58,720 Speaker 2: which is kind of a miniature version of pop. 245 00:12:58,840 --> 00:13:00,600 Speaker 3: It's much smaller, it's like and small. 246 00:13:00,640 --> 00:13:04,080 Speaker 2: The level of detail in it is is pretty amazing 247 00:13:04,120 --> 00:13:07,120 Speaker 2: and you know, pretty incredible, you know, and those you 248 00:13:07,160 --> 00:13:09,000 Speaker 2: can buy sort of a single bitty pop for a 249 00:13:09,040 --> 00:13:11,680 Speaker 2: few dollars, and then you can buy kind of multi 250 00:13:11,720 --> 00:13:14,280 Speaker 2: packs of them, you know, similarly in that you know, 251 00:13:14,320 --> 00:13:16,680 Speaker 2: twelve dollars range. And then look we make you know, 252 00:13:16,679 --> 00:13:19,760 Speaker 2: we have a brand called Mondo that makes these highly 253 00:13:19,880 --> 00:13:25,080 Speaker 2: highly detailed collectible figures that you know, go up to 254 00:13:25,200 --> 00:13:27,520 Speaker 2: a couple hundred dollars in price, you know, and then 255 00:13:27,559 --> 00:13:30,480 Speaker 2: there's a lot of things you know in between. Look 256 00:13:30,520 --> 00:13:35,840 Speaker 2: for us, you know, like entertainment is you know, it's 257 00:13:35,880 --> 00:13:40,480 Speaker 2: global now, you know what people watch, you know, is 258 00:13:40,520 --> 00:13:42,720 Speaker 2: extremely varied, and I think we want to make sure 259 00:13:42,760 --> 00:13:45,320 Speaker 2: that you know, We're there to kind of serve fans 260 00:13:45,440 --> 00:13:48,320 Speaker 2: at whatever price point and whatever their you know, personal 261 00:13:48,360 --> 00:13:50,720 Speaker 2: interest is. So we we try and kind of, you know, 262 00:13:50,800 --> 00:13:53,200 Speaker 2: make sure we're offering something to everyone, both from a 263 00:13:53,240 --> 00:13:56,000 Speaker 2: price point and in terms of the retail stores where 264 00:13:56,000 --> 00:13:57,040 Speaker 2: you could find our products. 265 00:13:57,240 --> 00:14:01,240 Speaker 1: Talking about other things available from Funko, I've gone to 266 00:14:01,320 --> 00:14:04,760 Speaker 1: Disney enough times to notice the lounge fly bag. Yes, 267 00:14:04,960 --> 00:14:08,920 Speaker 1: tiny little bags come in all different styles of different 268 00:14:08,960 --> 00:14:11,440 Speaker 1: licenses of IP. But when you're at Disney World, you 269 00:14:11,480 --> 00:14:13,840 Speaker 1: see them. Everyone wants you see them. You can't unsee them. 270 00:14:14,080 --> 00:14:16,720 Speaker 1: Someone's wearing it. It's a cute little thing tied to 271 00:14:16,840 --> 00:14:19,520 Speaker 1: whatever I keep. How did that come about? Was it 272 00:14:19,560 --> 00:14:23,560 Speaker 1: specifically just like organically the consumers who were enjoying lounge 273 00:14:23,600 --> 00:14:26,680 Speaker 1: fly Disney tied laune flies started wearing them to the 274 00:14:26,720 --> 00:14:29,680 Speaker 1: park and they became like the park accessory, and then 275 00:14:29,720 --> 00:14:31,160 Speaker 1: lounge Fly started making ears. 276 00:14:31,480 --> 00:14:36,920 Speaker 3: I like to call it wearable storytelling. I think. 277 00:14:37,560 --> 00:14:39,400 Speaker 2: I mean, look, one of the things that I've really 278 00:14:39,640 --> 00:14:41,880 Speaker 2: you know, I've thought about for a while, and you know, 279 00:14:41,880 --> 00:14:43,880 Speaker 2: I even saw it. I'd say sort was very much 280 00:14:43,920 --> 00:14:47,320 Speaker 2: schooled in this from the Nike perspective. Is that you know, 281 00:14:47,400 --> 00:14:51,600 Speaker 2: products themselves are a pretty powerful medium of storytelling, right 282 00:14:51,640 --> 00:14:54,760 Speaker 2: I think. I think typically people think of telling stories 283 00:14:54,800 --> 00:14:56,640 Speaker 2: through the lens of you know, I'm reading it in 284 00:14:56,680 --> 00:14:58,320 Speaker 2: a book, or I'm seeing it in a play, or 285 00:14:58,320 --> 00:15:00,160 Speaker 2: I'm you know, watching a movie or tea v. 286 00:15:00,280 --> 00:15:00,520 Speaker 3: Show. 287 00:15:00,800 --> 00:15:04,160 Speaker 2: But there's like a ton of of sort of storytelling 288 00:15:04,200 --> 00:15:06,840 Speaker 2: that can be captured in a product. I think, you know, 289 00:15:06,880 --> 00:15:08,760 Speaker 2: one of the things I was always amazed by at 290 00:15:08,840 --> 00:15:11,880 Speaker 2: Nike that you know, the casual fan might not realize, 291 00:15:11,920 --> 00:15:14,560 Speaker 2: but you know, the collector or super fan do's Like 292 00:15:14,880 --> 00:15:19,280 Speaker 2: almost every you know, color that's decided for a sneaker, 293 00:15:19,480 --> 00:15:22,680 Speaker 2: every stitch down to the you know, the design of 294 00:15:22,760 --> 00:15:26,120 Speaker 2: like the insul or the outsol typically has some story 295 00:15:26,160 --> 00:15:28,760 Speaker 2: embedded in it, Like there's a reference to you know, 296 00:15:28,800 --> 00:15:31,680 Speaker 2: it's a reference to this game that Michael Jordan played, 297 00:15:32,080 --> 00:15:34,120 Speaker 2: you know, in the eighties when he had the flu, 298 00:15:34,560 --> 00:15:38,400 Speaker 2: and that story gets interpreted onto the canvas of a sneaker. 299 00:15:38,680 --> 00:15:42,119 Speaker 2: If you're super into you know, the world of basketball, 300 00:15:42,160 --> 00:15:45,600 Speaker 2: you'd recognize that. And if you're not into the world 301 00:15:45,640 --> 00:15:47,880 Speaker 2: of basketball, it just looks cool. And I put sort 302 00:15:47,920 --> 00:15:50,920 Speaker 2: of like lounge Fly in that same category. When you 303 00:15:51,000 --> 00:15:54,200 Speaker 2: really look into the level of detail that goes into 304 00:15:54,240 --> 00:15:57,560 Speaker 2: the craftsmanship and you know, method of making those products, 305 00:15:57,600 --> 00:16:01,440 Speaker 2: Like there's tons of Easter eggs and you know hidden 306 00:16:01,520 --> 00:16:04,520 Speaker 2: drawings and the designs that kind of fall into that 307 00:16:04,600 --> 00:16:07,560 Speaker 2: like if you know, you know category and so you know, look, 308 00:16:08,040 --> 00:16:11,720 Speaker 2: you experience it. They're at Disney, like Disney has you know, 309 00:16:11,840 --> 00:16:16,160 Speaker 2: probably like the most passionate consumer base of almost any 310 00:16:16,480 --> 00:16:19,200 Speaker 2: company in the world, and it you know, and I 311 00:16:19,200 --> 00:16:23,280 Speaker 2: think those Lounge Fly products feed into that passion, feeds 312 00:16:23,280 --> 00:16:26,720 Speaker 2: into the desire for you know, Easter eggs and storytelling 313 00:16:26,760 --> 00:16:29,880 Speaker 2: and you know hidden mickeys that people seek out, you know, 314 00:16:30,040 --> 00:16:32,400 Speaker 2: around around the parks. And then we also have embedded 315 00:16:32,400 --> 00:16:35,960 Speaker 2: in some of our products as well, and it's another 316 00:16:36,080 --> 00:16:38,560 Speaker 2: form of it gets back to, honestly another form of 317 00:16:38,600 --> 00:16:42,120 Speaker 2: that collectibility in that adult strategy as well. 318 00:16:42,520 --> 00:16:44,640 Speaker 1: One of the things coming up that we're talking at 319 00:16:44,640 --> 00:16:46,880 Speaker 1: it the New York Toy Fair. So i'd love to know, 320 00:16:46,920 --> 00:16:48,560 Speaker 1: you know, what you can tease going into that, what 321 00:16:48,640 --> 00:16:50,840 Speaker 1: you all have and what you're excited to show everyone 322 00:16:50,880 --> 00:16:51,280 Speaker 1: this year. 323 00:16:51,400 --> 00:16:55,920 Speaker 2: Yeah, well, we are in the thick of toy fair 324 00:16:56,000 --> 00:16:58,480 Speaker 2: season right now. So if I sound like I have 325 00:16:58,520 --> 00:17:00,640 Speaker 2: a little bit of a cold just back a couple 326 00:17:00,680 --> 00:17:04,000 Speaker 2: of weeks ago from the Nuremberg Toy Show, which is 327 00:17:04,320 --> 00:17:06,360 Speaker 2: which is one of the largest in the world, very 328 00:17:06,400 --> 00:17:08,760 Speaker 2: global in nature, and then you know. 329 00:17:08,760 --> 00:17:12,280 Speaker 3: About to be followed up here by the by New 330 00:17:12,359 --> 00:17:15,520 Speaker 3: York and it's fun. I mean, look, those those toy shows, 331 00:17:15,560 --> 00:17:16,600 Speaker 3: you usually. 332 00:17:16,520 --> 00:17:19,280 Speaker 2: Our peer companies and you know a bunch of the 333 00:17:19,320 --> 00:17:22,800 Speaker 2: other brands like Lego and How's Bro Mattel, you know, 334 00:17:23,040 --> 00:17:25,440 Speaker 2: all all have booths and they're designed to kind of 335 00:17:25,480 --> 00:17:29,200 Speaker 2: showcase a lot of the license soars, like the studios 336 00:17:29,480 --> 00:17:33,439 Speaker 2: or particularly retail buyers from our partners like Amazon and 337 00:17:33,480 --> 00:17:36,800 Speaker 2: Walmart and Target and game Stop and what's upcoming. So 338 00:17:37,000 --> 00:17:39,520 Speaker 2: for us, so look, I'd say the strongest thing that 339 00:17:39,600 --> 00:17:42,800 Speaker 2: I'm excited about upcoming this year is the entertainment slate. 340 00:17:43,400 --> 00:17:47,240 Speaker 2: I think most people would probably say it is the 341 00:17:47,359 --> 00:17:51,120 Speaker 2: strongest entertainment slate from beginning the end of the year 342 00:17:51,160 --> 00:17:55,040 Speaker 2: that we've probably seen since like pre COVID times. And 343 00:17:55,119 --> 00:17:57,800 Speaker 2: so for us, you know, some of the things will 344 00:17:57,800 --> 00:18:00,480 Speaker 2: be showcasing. You go down the list, Mandal Orient and 345 00:18:00,560 --> 00:18:05,840 Speaker 2: Grogu Spider Man toy story five, there's a Molana live 346 00:18:05,920 --> 00:18:09,760 Speaker 2: action movie later this year, and then Avengers Doomsday at 347 00:18:09,800 --> 00:18:11,560 Speaker 2: the end of the year. All sort of like really 348 00:18:11,600 --> 00:18:14,639 Speaker 2: incredible elements from the Disney slate. You know, one piece 349 00:18:15,040 --> 00:18:19,400 Speaker 2: the anime and live action title is is big for us. 350 00:18:19,640 --> 00:18:22,639 Speaker 2: There's the season two of the Netflix live action show 351 00:18:22,680 --> 00:18:25,720 Speaker 2: that comes out this spring. In the DC universe, there's 352 00:18:25,720 --> 00:18:29,439 Speaker 2: super Girl, There's Minions three, so just you know, and 353 00:18:29,440 --> 00:18:31,399 Speaker 2: then and then I have to also give a shout 354 00:18:31,400 --> 00:18:34,080 Speaker 2: out to I'm very excited for the next for the 355 00:18:34,200 --> 00:18:37,120 Speaker 2: Narnia movie that Greta Gerwig is directing that that also 356 00:18:37,200 --> 00:18:38,800 Speaker 2: comes out at the end of the year. So it's 357 00:18:38,840 --> 00:18:42,720 Speaker 2: a massive entertainment slate, and we usually we're we're showcasing 358 00:18:42,880 --> 00:18:47,440 Speaker 2: behind closed doors because again like fans like aggressively seek 359 00:18:47,480 --> 00:18:50,159 Speaker 2: out spoilers through the products, you know, those things that 360 00:18:50,200 --> 00:18:53,200 Speaker 2: are coming for this year. There's also a lot we're 361 00:18:53,200 --> 00:18:56,080 Speaker 2: going to be showcasing in the sports world, like that's 362 00:18:56,119 --> 00:18:58,879 Speaker 2: been a growing category for us, and we're signing a 363 00:18:58,880 --> 00:19:02,639 Speaker 2: bunch of new deals with some F one drivers. 364 00:19:02,119 --> 00:19:04,480 Speaker 3: And teams that will be teasing there. 365 00:19:04,840 --> 00:19:07,879 Speaker 2: We are adding on some you know, i'd say so 366 00:19:07,960 --> 00:19:10,000 Speaker 2: they just came back from Europe, I'll say football, but 367 00:19:10,160 --> 00:19:14,800 Speaker 2: for everyone in America, soccer clubs and athletes and obviously 368 00:19:15,080 --> 00:19:15,639 Speaker 2: you know it's. 369 00:19:15,480 --> 00:19:18,680 Speaker 3: A World Cup year, so you know those are all 370 00:19:18,960 --> 00:19:19,360 Speaker 3: that's like. 371 00:19:19,320 --> 00:19:21,800 Speaker 2: A sneak peek into, you know, into some of what 372 00:19:21,840 --> 00:19:24,880 Speaker 2: we'll be you know, teasing. And by the way, i'd 373 00:19:24,960 --> 00:19:26,760 Speaker 2: mentioned sort of the I know, I mentioned kind of 374 00:19:26,840 --> 00:19:29,880 Speaker 2: one Piece in passing, but it's interesting, you know, because 375 00:19:30,119 --> 00:19:32,919 Speaker 2: it's it's a nice reflection of, you know, sort of 376 00:19:32,920 --> 00:19:36,159 Speaker 2: how our business has been able to evolve because you 377 00:19:36,200 --> 00:19:38,800 Speaker 2: look at something like anime, you know, as a fandom, 378 00:19:38,800 --> 00:19:42,160 Speaker 2: which I find super fascinating. Now you know that from 379 00:19:42,200 --> 00:19:46,639 Speaker 2: a viewership standpoint, anime viewing has tripled over the last 380 00:19:46,680 --> 00:19:49,560 Speaker 2: five years. It's really gone from sort of you know, 381 00:19:50,160 --> 00:19:53,400 Speaker 2: a niche, kind of Asian skewing audience to a much 382 00:19:53,560 --> 00:19:56,359 Speaker 2: much more kind of global fandom. And you know, our 383 00:19:56,400 --> 00:19:58,320 Speaker 2: business has been able to evolve in the same way. 384 00:19:58,359 --> 00:20:01,119 Speaker 2: You know, five years ago, anime with a tiny piece 385 00:20:01,240 --> 00:20:05,960 Speaker 2: of our portfolio. Now it's easily like the second biggest 386 00:20:06,000 --> 00:20:09,680 Speaker 2: genre of our products. One piece has consistently been one 387 00:20:09,680 --> 00:20:13,520 Speaker 2: of the biggest pieces of IP for us. As we've 388 00:20:13,560 --> 00:20:17,040 Speaker 2: seen that trend continue to grow, We've been able to 389 00:20:17,080 --> 00:20:19,920 Speaker 2: evolve our products in the same way, and there's there's 390 00:20:19,920 --> 00:20:21,240 Speaker 2: some fun along those lines. 391 00:20:21,240 --> 00:20:23,400 Speaker 3: Will be showcasing a New York toy fair as well. 392 00:20:24,000 --> 00:20:27,960 Speaker 1: Separate from what Funko does to showcase other ip it 393 00:20:28,000 --> 00:20:30,679 Speaker 1: has its own originals and in the way that Funko 394 00:20:30,720 --> 00:20:32,879 Speaker 1: is looking ahead to making its own content. There's Funko 395 00:20:33,000 --> 00:20:37,120 Speaker 1: Fusion now the video game starring Freddy Funko and all 396 00:20:37,160 --> 00:20:40,080 Speaker 1: as many licensing friends. There's been talked for quite a 397 00:20:40,080 --> 00:20:42,399 Speaker 1: while of a funk Pro movie. So I'd like to 398 00:20:42,400 --> 00:20:44,560 Speaker 1: know how you're approaching those projects as you take on 399 00:20:44,600 --> 00:20:47,040 Speaker 1: your new role, ways that you'd want to contribute to 400 00:20:47,080 --> 00:20:49,840 Speaker 1: Funko Fusion, how you see that video game performing right now, 401 00:20:50,200 --> 00:20:52,119 Speaker 1: and what you'd want out of a Funko movie. 402 00:20:52,200 --> 00:20:55,680 Speaker 2: Well, I think part of our strategy, which we've coined 403 00:20:55,680 --> 00:21:01,119 Speaker 2: our Make Culture Pop strategy, centers on new product development 404 00:21:01,400 --> 00:21:05,639 Speaker 2: and new form factors that we're going to start introducing 405 00:21:05,680 --> 00:21:08,240 Speaker 2: even later this year and certainly over the next couple 406 00:21:08,240 --> 00:21:10,480 Speaker 2: of years. From a creative standpoint, though, I'd say it 407 00:21:10,480 --> 00:21:13,679 Speaker 2: falls into two big dimensions. One is just even thinking 408 00:21:13,720 --> 00:21:17,880 Speaker 2: about within the existing products that are out on the market, 409 00:21:18,000 --> 00:21:21,240 Speaker 2: what are new areas of fandom that we haven't quite 410 00:21:21,320 --> 00:21:24,439 Speaker 2: explored yet. And so one area that I'll just tease 411 00:21:24,560 --> 00:21:28,080 Speaker 2: is like clearly the world of creators, the world of 412 00:21:28,119 --> 00:21:31,760 Speaker 2: twitch streamers and on TikTok and the broader creative world 413 00:21:33,160 --> 00:21:36,120 Speaker 2: you know, is a massive source of entertainment. I mean, 414 00:21:36,160 --> 00:21:39,200 Speaker 2: I think at this point, you know, viewing hours TV, 415 00:21:39,320 --> 00:21:42,679 Speaker 2: viewing hours of YouTube is like, you know, double that 416 00:21:42,960 --> 00:21:47,040 Speaker 2: of Netflix, and you know, and and you know, you 417 00:21:47,160 --> 00:21:50,000 Speaker 2: add like a bunch of the other streamers together. I 418 00:21:50,000 --> 00:21:53,520 Speaker 2: think YouTube still you know, sort of dominates the space 419 00:21:53,600 --> 00:21:56,760 Speaker 2: for TV time. And so that's like a whole nother, 420 00:21:57,000 --> 00:22:01,960 Speaker 2: whole new area of characters and ways of creating products 421 00:22:02,000 --> 00:22:05,320 Speaker 2: that I think can be really exciting to fans. And 422 00:22:05,640 --> 00:22:07,400 Speaker 2: so that's sort of from a you know, just from 423 00:22:07,440 --> 00:22:10,120 Speaker 2: a pure like genre and IP lens, there's a ton 424 00:22:10,119 --> 00:22:12,880 Speaker 2: of unexplored areas that we're excited about. To your point, 425 00:22:13,119 --> 00:22:16,879 Speaker 2: I am incredibly excited about new IP and things that 426 00:22:16,920 --> 00:22:18,159 Speaker 2: we're creating ourselves. 427 00:22:18,200 --> 00:22:20,640 Speaker 3: So like, obviously I have a. 428 00:22:20,600 --> 00:22:24,520 Speaker 2: Background in you know, film and TV. I know, you know, 429 00:22:24,560 --> 00:22:26,600 Speaker 2: those things can take a long time to develop. So 430 00:22:26,640 --> 00:22:29,520 Speaker 2: I'll just kind of tease it now and say that 431 00:22:29,880 --> 00:22:33,399 Speaker 2: I do think that there's opportunities for us to create. 432 00:22:33,480 --> 00:22:35,280 Speaker 2: First of all, there's opportunities for us to create more 433 00:22:35,320 --> 00:22:39,119 Speaker 2: original characters and some new form factors, and that is 434 00:22:39,160 --> 00:22:42,280 Speaker 2: something we have in the works. Then both with those 435 00:22:42,359 --> 00:22:45,600 Speaker 2: new form factors, how we tell stories around them, I 436 00:22:45,640 --> 00:22:48,679 Speaker 2: think is a big part of my focus. There's also 437 00:22:48,880 --> 00:22:50,600 Speaker 2: a way to think about, you know, how we tell 438 00:22:50,640 --> 00:22:53,840 Speaker 2: stories with even some of our licensed IP partners. 439 00:22:53,880 --> 00:22:54,760 Speaker 3: I think Lego is. 440 00:22:54,760 --> 00:22:56,960 Speaker 2: One example of like a company that's done a really 441 00:22:57,000 --> 00:22:59,560 Speaker 2: great job of this, whether it's with you know, Lego 442 00:22:59,680 --> 00:23:03,520 Speaker 2: Movie and and some of those movies tapping into the 443 00:23:04,080 --> 00:23:07,680 Speaker 2: you know, the Batman universe and the DC Universe, or 444 00:23:08,080 --> 00:23:11,520 Speaker 2: something like Ninjago, which is original Lego IP that's come 445 00:23:11,560 --> 00:23:14,760 Speaker 2: to life through Lego sets and through content. And so 446 00:23:14,920 --> 00:23:17,760 Speaker 2: I take a lot of inspiration from that. And just 447 00:23:17,800 --> 00:23:19,960 Speaker 2: to tease and say that, you know, I'll go back 448 00:23:19,960 --> 00:23:22,280 Speaker 2: to my excuse of only being here for you know, 449 00:23:22,320 --> 00:23:25,439 Speaker 2: for five months now, but I do think you know, 450 00:23:25,800 --> 00:23:28,679 Speaker 2: those you know, the way that you can kind of 451 00:23:28,680 --> 00:23:31,440 Speaker 2: tell stories and film, TV and then and then even 452 00:23:31,480 --> 00:23:34,520 Speaker 2: in more short form content on YouTube and you know, 453 00:23:34,600 --> 00:23:37,680 Speaker 2: TikTok and Instagram, I think are really compelling and it's 454 00:23:37,720 --> 00:23:40,920 Speaker 2: definitely a growth area for the company. That you'll hear 455 00:23:41,359 --> 00:23:44,720 Speaker 2: more more on that soon from us. In April, whe're 456 00:23:45,240 --> 00:23:49,280 Speaker 2: launching a brand new experience with Inner Miami, the soccer 457 00:23:49,680 --> 00:23:52,800 Speaker 2: team down there, in a brand new stadium. We're going 458 00:23:52,840 --> 00:23:56,439 Speaker 2: to have a Funko shop and shop that I'll have 459 00:23:56,520 --> 00:24:00,119 Speaker 2: exclusive product with Inner Miami, and it's one of the 460 00:24:00,160 --> 00:24:03,639 Speaker 2: first times we'll be testing sort of a Kiosk based 461 00:24:04,960 --> 00:24:08,239 Speaker 2: pop yourself experience with sort of a couple versions of 462 00:24:08,359 --> 00:24:10,520 Speaker 2: like you can only get you can only get this 463 00:24:10,640 --> 00:24:14,159 Speaker 2: sort of Miami version of yourself there in that store. 464 00:24:14,880 --> 00:24:16,919 Speaker 2: And you know, we're talking to a couple other retail 465 00:24:16,960 --> 00:24:21,120 Speaker 2: partners about how we can roll out that kiosk experience 466 00:24:21,200 --> 00:24:24,000 Speaker 2: and you know, in other doors and keep it special 467 00:24:24,119 --> 00:24:25,879 Speaker 2: and try and kind of preserve that idea that you 468 00:24:25,960 --> 00:24:29,080 Speaker 2: have to go to this specific location at the specific 469 00:24:29,160 --> 00:24:32,359 Speaker 2: moment in time to get the product. We did something similar. Actually, 470 00:24:32,400 --> 00:24:34,440 Speaker 2: it all go it always goes back to Stranger Things. 471 00:24:34,440 --> 00:24:37,399 Speaker 2: But we you know, we have this Netflix had this 472 00:24:37,480 --> 00:24:41,439 Speaker 2: incredible Stranger Thing stage play that open on in the 473 00:24:41,440 --> 00:24:43,600 Speaker 2: West End of Oneon a few years ago and then 474 00:24:43,640 --> 00:24:46,040 Speaker 2: it's on Broadway as well, open a couple of years 475 00:24:46,040 --> 00:24:50,080 Speaker 2: ago for Stranger Things Day. This year this past year sorry, 476 00:24:50,080 --> 00:24:53,600 Speaker 2: which was in November, we activated a version of the 477 00:24:53,720 --> 00:24:57,000 Speaker 2: pop your Self experience in the lobby of the Broadway Theater. 478 00:24:57,200 --> 00:25:00,000 Speaker 2: And you know, again it sort of feeds into those 479 00:25:00,119 --> 00:25:04,240 Speaker 2: trends of sort of like experiential fomo, you know, collectibles 480 00:25:04,280 --> 00:25:06,520 Speaker 2: that like if you were you happen to be at 481 00:25:06,520 --> 00:25:09,600 Speaker 2: the theater during that period of time, you were able 482 00:25:09,640 --> 00:25:13,399 Speaker 2: to create a pop yourself version with some stranger things, 483 00:25:13,480 --> 00:25:15,679 Speaker 2: you know, theming that was sort of limited, you know, 484 00:25:15,800 --> 00:25:17,560 Speaker 2: in time and availability. 485 00:25:17,760 --> 00:25:20,199 Speaker 1: As you look forward in twenty twenty six and you 486 00:25:20,240 --> 00:25:23,600 Speaker 1: know when you first entered role, their high inventory issues. 487 00:25:23,680 --> 00:25:26,359 Speaker 1: Talking about the more recent earnings reports and just looking 488 00:25:26,400 --> 00:25:28,480 Speaker 1: at the state of the business, and I want you 489 00:25:28,480 --> 00:25:30,760 Speaker 1: to know what your optimism looks like for this year 490 00:25:30,840 --> 00:25:33,600 Speaker 1: and how you see the growth of the business moving forward, 491 00:25:33,720 --> 00:25:37,000 Speaker 1: specifically in terms of what can be done actionably like 492 00:25:37,200 --> 00:25:39,960 Speaker 1: soon and in the near term to right size things. 493 00:25:40,160 --> 00:25:40,360 Speaker 3: Yeah. 494 00:25:40,440 --> 00:25:43,760 Speaker 2: Look, I think last year, you know, we've we had 495 00:25:43,760 --> 00:25:45,160 Speaker 2: a strong Q three. 496 00:25:45,600 --> 00:25:47,960 Speaker 3: Obviously, like early in the year, like a lot of. 497 00:25:47,920 --> 00:25:50,840 Speaker 2: Other companies, you know, we were navigating some of the 498 00:25:50,920 --> 00:25:54,520 Speaker 2: uncertainty around tariffs, and as were our retail partners, and 499 00:25:54,560 --> 00:25:56,919 Speaker 2: that obviously you know, creates some ups and downs to 500 00:25:56,960 --> 00:26:01,000 Speaker 2: the business. You haven't reported Q four yet, you know 501 00:26:01,080 --> 00:26:03,840 Speaker 2: that'll that'll come in early March. But I'm excited to, 502 00:26:04,160 --> 00:26:06,439 Speaker 2: you know, to share that with everyone and where we 503 00:26:06,560 --> 00:26:08,880 Speaker 2: ended up. The great thing is that, you know, from 504 00:26:08,880 --> 00:26:11,760 Speaker 2: an end of year standpoint, last year, obviously, you know, 505 00:26:11,840 --> 00:26:14,680 Speaker 2: Stranger Things was a huge hit for Netflix. We made 506 00:26:14,720 --> 00:26:17,200 Speaker 2: a big bet on that as a company as well, 507 00:26:17,240 --> 00:26:19,879 Speaker 2: and we know that the fandom for that title is 508 00:26:20,119 --> 00:26:22,359 Speaker 2: is pretty huge. The other thing that I say, you know, 509 00:26:22,520 --> 00:26:24,280 Speaker 2: ending last year and is kind of going into this 510 00:26:24,359 --> 00:26:27,119 Speaker 2: year as well, is K Pop Demon Hunters. You know, 511 00:26:27,160 --> 00:26:32,040 Speaker 2: we moved really quickly on that film last holiday season. 512 00:26:32,160 --> 00:26:35,080 Speaker 2: We were really the only company that had toys and 513 00:26:35,119 --> 00:26:39,639 Speaker 2: collectibles on the market available for purchase around holiday season. 514 00:26:40,160 --> 00:26:43,120 Speaker 2: So the pace at which we're able to bring products 515 00:26:43,160 --> 00:26:45,480 Speaker 2: to market and kind of getting back to that idea 516 00:26:45,520 --> 00:26:48,160 Speaker 2: of like being part of pop culture while people are 517 00:26:48,440 --> 00:26:50,840 Speaker 2: talking about it is you know, is a little bit 518 00:26:50,880 --> 00:26:54,080 Speaker 2: of I think what makes Funko special and an example 519 00:26:54,119 --> 00:26:57,080 Speaker 2: of you know what I'm excited about going forward. Big picture, 520 00:26:57,760 --> 00:27:00,040 Speaker 2: We've spent a lot of time sort of fine tuning 521 00:27:00,080 --> 00:27:03,240 Speaker 2: the strategy I mentioned sort of called make culture Pop 522 00:27:03,760 --> 00:27:07,040 Speaker 2: and three dimensions to that that I'm really excited about culture. 523 00:27:07,240 --> 00:27:09,560 Speaker 2: As I mentioned, it's really about being at the center 524 00:27:09,600 --> 00:27:12,320 Speaker 2: of what everyone's talking about. We can do that through 525 00:27:12,760 --> 00:27:15,840 Speaker 2: new genres, like we talked about on the creator side, 526 00:27:16,160 --> 00:27:18,880 Speaker 2: we can we can think about it through the breadth 527 00:27:18,880 --> 00:27:21,360 Speaker 2: of the licenses that we have and continuing to kind 528 00:27:21,359 --> 00:27:24,960 Speaker 2: of evolve our products in whatever direction pop culture heads. 529 00:27:25,320 --> 00:27:29,280 Speaker 2: And then we have really been operationalizing speed to market 530 00:27:29,440 --> 00:27:32,119 Speaker 2: I call it. We have sort of a program we 531 00:27:32,160 --> 00:27:35,120 Speaker 2: called hyper Strike that we'll be rolling out later this year, 532 00:27:35,440 --> 00:27:38,480 Speaker 2: and that's really the ability to kind of react within 533 00:27:38,520 --> 00:27:41,080 Speaker 2: a matter of weeks to something that you know is 534 00:27:41,160 --> 00:27:45,520 Speaker 2: happening in sports, in culture online, and getting products to 535 00:27:45,840 --> 00:27:48,960 Speaker 2: consumers very quickly. The second area of make Culture Pop, 536 00:27:49,000 --> 00:27:52,400 Speaker 2: which we've talked about, is this area of creativity. How 537 00:27:52,440 --> 00:27:55,920 Speaker 2: do we turn every product into a canvas for storytelling 538 00:27:56,119 --> 00:27:59,359 Speaker 2: new dimensions of our existing products like BiDi pop, you know, 539 00:27:59,400 --> 00:28:02,879 Speaker 2: and meaning sure even with Lounge Fly, we've created some 540 00:28:02,960 --> 00:28:06,720 Speaker 2: incredible mini backpacks, bag charms, and pins which you know 541 00:28:06,760 --> 00:28:09,119 Speaker 2: are really on trend right now. And then you know, 542 00:28:09,160 --> 00:28:13,000 Speaker 2: some of those newer dimensions around new product formats and content. 543 00:28:13,080 --> 00:28:15,879 Speaker 2: And then The third area is really around commerce, Like 544 00:28:15,920 --> 00:28:17,920 Speaker 2: we want to make sure that we're bringing our products 545 00:28:17,960 --> 00:28:21,200 Speaker 2: to fans all over the world, almost sort of thinking 546 00:28:21,240 --> 00:28:24,439 Speaker 2: of like every shelf is a stage for our products. 547 00:28:24,560 --> 00:28:27,480 Speaker 2: Right now, we have a really strong business and footprint 548 00:28:27,640 --> 00:28:32,280 Speaker 2: in the US and in Europe about fourteen hundred retail 549 00:28:32,359 --> 00:28:35,600 Speaker 2: partners you know, and thousands of you know, ten thousand 550 00:28:36,040 --> 00:28:39,440 Speaker 2: plus retail doors that we're in, but we barely scratch 551 00:28:39,520 --> 00:28:43,520 Speaker 2: the surface in Asia and Latin America as one example, 552 00:28:43,560 --> 00:28:47,520 Speaker 2: and obviously you know Asia, i'll just highlight as one, 553 00:28:47,880 --> 00:28:51,040 Speaker 2: you know, huge growth potential for us. Obviously, the market 554 00:28:51,080 --> 00:28:54,040 Speaker 2: for collectibles there is pretty big, you know, when I 555 00:28:54,120 --> 00:28:58,160 Speaker 2: just I just mentioned coming back from the ToyFare in Europe. 556 00:28:58,640 --> 00:29:02,120 Speaker 2: In Europe, one out of every nine dollars that's spent 557 00:29:02,400 --> 00:29:05,520 Speaker 2: in the toy industry is related to Asian IP that 558 00:29:05,680 --> 00:29:09,120 Speaker 2: grew by about fifty percent last year. Now, a lot 559 00:29:09,200 --> 00:29:12,520 Speaker 2: of that is driven by Pokemon, which is the fastest, 560 00:29:12,920 --> 00:29:15,960 Speaker 2: you know, the top growing IP brand at the moment. 561 00:29:16,160 --> 00:29:19,560 Speaker 2: But even if you take out Pokemon, that growth is 562 00:29:19,560 --> 00:29:23,240 Speaker 2: about twenty percent last year. So I think Asia represents 563 00:29:23,240 --> 00:29:26,600 Speaker 2: a huge opportunity for us from a consumer standpoint, Certainly 564 00:29:26,640 --> 00:29:29,840 Speaker 2: it's kind of untapped for us from a retail distribution standpoint, 565 00:29:30,080 --> 00:29:33,440 Speaker 2: but the amount of sort of globally relevant IP that's 566 00:29:33,480 --> 00:29:36,120 Speaker 2: coming from that region right now is really inspiring and 567 00:29:36,160 --> 00:29:39,360 Speaker 2: I think represents another growth opportunity that gets me on 568 00:29:39,440 --> 00:29:40,200 Speaker 2: the team excited. 569 00:29:40,360 --> 00:29:42,760 Speaker 1: Great well, looking forward to seeing what else is coming down. 570 00:29:42,840 --> 00:29:45,400 Speaker 1: Appreciate it, Thank you, Thank you for joining us for 571 00:29:45,440 --> 00:29:48,800 Speaker 1: this week's episode of Variety Strictly Business. You can find 572 00:29:48,840 --> 00:29:51,120 Speaker 1: new episodes weekly on Apple Podcasts.