Baby Yoda took the world by storm after debuting in the Disney+ series The Mandalorian, but how much money has Disney lost by not making Baby Yoda toys for the holidays? The adorable little creature appeared at the very end of episode 1 of the Disney+ series and captivated the hearts of fans, and even individuals who don’t watch the show, all over the world. Although originally termed “The Child” in the series, fans were quick to rename him Baby Yoda, and the name has stuck ever since. The character’s popularity continues to skyrocket, becoming a source for hilarious memes, artwork, and was even featured with Disney’s CEO Bob Iger as Time’s Person of the Year.
Because of Baby Yoda’s monumental success, Disney was quick to capitalize on it. Unfortunately, since the creature was a surprise reveal at the end of episode 1, merchandise centered on Baby Yoda began rolling out later than expected. Although the first reactions weren’t what Disney hoped for, the company has since improved. But, despite quickly releasing new products and toys, the initial lack of merchandise wound up being a loss for the Mouse House. It was originally estimated that Disney could be missing out on $2.7 million worth of sales, but how does this affect the company moving forward?
According to CNBC, that estimated loss won’t hurt Disney in the long run. If anything, there’s a good lesson to be learned from it. Lynnwood Bibbens, CEO and Co-Founder of Reach TV, explains that the estimate is “very low” but he also thinks that “the bigger problem was understanding content and social and the viral nature of it.” He added that “content is going to drive the commerce” and Disney just “didn’t have the right people in place.” He went on to explain that he thinks that “this is a mistake that happens once,” and that Disney will “fix it later on.” When asked if there’s going to be a lot more product merchandising off of streaming TV going forward, Bibbens explained that “streaming companies are getting bought by merchandising companies that understand the connection.” He continues by saying that the top trends on Twitter, usually “television series, feature film, or live sports,” are the things that “drive social engagement” and also “drives merchandising,” explaining that “when you have companies that understand that scale and the logistics,” then more merchandise will start appearing.
The popularity of Baby Yoda took everyone by surprise, including Disney CEO Bob Iger, so it makes sense that they weren’t prepared with the merchandise. But, Bibbens point also makes sense that this is something that only happens once, and Disney definitely won’t be making the same mistake twice. Although it’s understandable why Baby Yoda was kept a secret for the series, Disney will surely plan ahead next time when it comes to merchandise.
Bibbens’ point about understanding the relationship between content and social media is also an extremely important thing for companies to learn. Baby Yoda went viral almost immediately after debuting on The Mandalorian, so it makes sense why people wanted merchandise as quickly as they did. If anything, this financial loss for Disney is proof that paying attention to social media is a good idea when moving forward with content. It also shows that social media plays an important role in content creation and knowing what fans want to see more of.
Next: More Baby Yoda Merch Has Finally Been Revealed!
Source: CNBC
