Film-based Merchandising (FBM) refers to the marketing of products related to a movie's theme or characters. Usually, film producers license third parties to manufacture and sell products based on their films. The merchandised products serve as an indirect advertisement for the film. They also bring in sales revenues to the marketers of the products and royalties to the film producers. While FBM has grown to great heights in Hollywood, it is as yet in a nascent stage in India.

Merchandising is the act of manufacturing and marketing a product based on a copyrighted property. Film-based Merchandising (FBM) or movie merchandising refers to the making and selling of articles that are related to a movie's theme, characters or locations. The most popular types of merchandised products are stationery, posters, clothing, toys and gift articles.

The basic premise behind FBM is that if a film has an attractive theme or characters, the fans who view the film would also like to purchase and possess articles associated with the film, as a memento. This provides a marketing opportunity to manufacturers and traders of such products. At the same time, the merchandised articles can also provide publicity for the film itself, thereby promoting it and bringing in larger audiences.

The general practice is that film producers or distributors who hold the rights to the films, license third parties to manufacture and sell such spin-off products for a fixed fee plus royalty linked to sales revenue (at around 5-10%). The film producers view this as a source of additional income and also as a means for promoting their films by generating greater awareness through the merchandised products. The licensee bears the risk and returns associated with the manufacturing and selling of the merchandise.

Advertising Express Magazine, | Film-based Merchandising, Marketing Opportunity, McDonalds Restaurants, Movie Merchandising, Walt Disney's Animated Films, Film Production, Business Planning, Tanishq Brand, Big Bazaar Outlets, Pantaloon Retails, Cartoon Network Entertainment, CNE, Licensing Industry Merchandisers' Association, LIMA.