Pop culture pulls in major bucks

— -- Entertainment and sports heroes had only a so-so year in 2007 if you look at traditional yardsticks such as sales of tickets and discs.

But their appeal as pop culture icons was stronger than ever, judging by sales of clothing, book bags, games, toys, food packaging and other goods emblazoned with licensed names and likenesses.

Popular characters and brands including Hannah Montana, Calvin Klein and the New York Yankees helped drive global spending on licensed merchandise up 3.6% last year to $187 billion, according to trade magazine License Global and PricewaterhouseCoopers.

"The emerging markets and middle classes in Eastern Europe, China and India want our brands in entertainment, lifestyle, fashion and sports," says Steven Ekstract, the magazine's publisher. That's one reason he expects sales this year to hit $200 billion, even if the U.S. economy remains in a slump. Another reason: When money is tight, people take comfort in familiar and trusted names.

He and others also are optimistic that kids attending this summer's popcorn movies — including Iron Man, Speed Racer, Indiana Jones and the Kingdom of the Crystal Skull, The Chronicles of Narnia: Prince Caspian, Kung Fu Panda, The Incredible Hulk and Wall-E — will walk out wanting related toys and clothes.

About 44% of cash spent on licensed merchandise in 2006 went for goods linked to entertainment characters, most from movies and television, says the International Licensing Industry Merchandisers' Association (LIMA).

Manufacturers and retailers take a leap of faith when they make and stock products based on entertainment characters. These commitments often must be made a year in advance.

Sometimes, promising films misfire.

For example, sales last year tied to The Golden Compass and Bee Movie "turned out to be somewhat disappointing," says Michael Stone, CEO of licensing consulting firm The Beanstalk Group. Movie-related sales "were primarily driven by evergreen and franchise properties. There wasn't a big new merchandising success."