How brands and celebrities cash in on licensed content
April 14, 2026
The first ever licensed merchandise, which is where characters and brands are used to create products with official permission, was produced in the early 20th century. Peter Rabbit soft toys, which were licensed for production by the author Beatrix Potter in 1903, was the first recorded example of this practice. Since then, officially licensed products have been created by a wide range of different industries.
Although officially licensed content started out as just toys and games for children, the branding strategy has evolved significantly over the decades. Now, official merchandise is an important part of a branding strategy for multi-national corporations, celebrities and big brands.
Fashion and Product Collaborations
The fashion industry has particularly benefited from celebrity endorsements and merchandising deals, with a huge range of celebrities launching their own fashion line. Idol goods or idol merchandise are the terms given to this type of merchandising. It can be incredibly effective, both for the product manufacturer and the celebrity, as it helps create a physical connection between fans and celebrities.
Fans of a particular musician, athlete or famous figure enjoy purchasing officially licensed content because it’s a way of publicly showing their support. The Beatles were one of the early pioneers in this form of merchandising, setting up their own retail store in the 1960s. Since then, band t-shirts, posters and even stationery have become commonplace in stores all over the world.
In the 21st century, the proliferation of idol goods has only increased as society has fuelled the rise of celebrities and influencers. Many celebrities, such as Beyonce with Adidas, have launched their own clothing lines, which allow fans to purchase unique clothing styles by their favourite famous figures.
Virtual Merchandise and Gaming
Officially licensed video games are hardly new, although the number of licensing deals made within the gaming industry has grown significantly in recent years. The first ever licensed game, Fonz, was released by Sega in 1976 and featured the popular character Fonzi from the TV show Happy Days.
As the video game industry has grown, brands have increasingly seen it as a way to increase brand awareness and even generate revenue. Many racing games, for example, have licensing deals with car manufacturers, which can help to increase the prestige and reputation of luxury car brands. In recent years, many celebrities have also signed licensing deals. For example, in the case of Fortnite, users can play using virtual skins from popular figures, including Neymar Jr., LeBron James, Ariana Grande, Lewis Hamilton, Eminem, Snoop Dog and more.
Some brands have also explored the concept of non-fungible tokens (NFTs). These unique digital assets exist on the blockchain, and can represent ownership of virtual and physical items such as collectables, art and music. Snoop Dogg and Steve Aoki are two celebrities who have launched their own licensed NFT collections.
There are a lot of officially licensed and branded online games too. The world of online slots is filled with branded games, including the Deal or No Deal and Wheel of Fortune slots. There are also lots of popular band slots, including Guns N Roses, Kiss, Sabaton and ZZ Top. Some slot providers have also released branded Megaways slots featuring popular film characters, including Ted Megaways and The Goonies Megaways. Megaways slots are some of the most popular games thanks to their creative bonus features.
Multimedia Licensing
Multimedia, including TV shows, films, documentaries, music and podcasts, is closely related to the world of celebrities as this is where many popular figures achieve their fame. For many celebrities, branching out into other areas of multimedia is a way of increasing their popularity. For example, when music stars launch their own reality TV shows, such as Ozzy Osbourne with The Osbournes and Travis Barker with Meet the Barkers.
Social media is another popular way for brands and celebrities to expand their audience. Most celebrities have heavily curated social media pages which allow fans to follow them and get the latest pictures, news and updates about their lives. Meanwhile, brands can advertise organically through social media, interacting with users and trends online to increase brand awareness.
Sports Merchandise
Sports merchandise, including branded apparel and products, started to first take off in the 1970s, when sporting goods stores began selling replica shirts. What is now commonplace all over the world was a completely novel idea at the time, but it caught on quickly. Merchandise began to become increasingly common in the stands at sporting events, with fans proudly wearing their replica shirts.
Today, sports apparel has gone from being exclusively available to athletes to becoming a common part of mainstream fashion. Collaborations between sports teams and major fashion brands such as Moncler and Prada have created distinctive styles for fans to collect.