For The Toy Book‘s 2024 Licensing & Entertainment Issue, we caught up with six executives to talk toys, trends, and strategy ahead of this year’s recently wrapped Licensing Expo at Mandalay Bay in Las Vegas. Now, we’re sharing extended editions of each Q&A here at ToyBook.com as part of our ongoing State of the Industry series.
In this installment, tied to our editorial cover, Abacus Brands‘ CEO Steve Rad discusses his company’s move into licensing.
The Toy Book: Abacus Brands is opening its arms to kids’ licensing this year in a space that merges physical and digital play — what are the biggest considerations for choosing a partner?
Steve Rad: The key for us is the alignment in both brand values and the thrill factor behind the entertainment value. Virtual reality (VR) gives us the perfect platform to bring kids’ favorite characters home, to interact and engage with in new ways. When we look for a licensing partner, we’re not just seeking a name; we’re seeking a story that fits seamlessly into the playful and educational ecosystem we’re building. The partner needs to bring something unique to the table, be it expertise, audience, or innovation that enhances the physical-digital blend we are known for.
TB: How has this evolved since striking deals with the likes of Bill Nye and Penn & Teller?
SR: Our approach to licensing has evolved from traditional to transformational. We’re not just using their names; we’re embedding their essence into our products. This has opened doors to thinking more creatively about how a license can enhance the learning experience, rather than just endorsing it. When we take on a subject, the first question is always, “Who would a kid like to learn that from the most, that would make it more than just a lesson?” Our job is to identify the best voice to deliver a narrative and to cascade the traditional approach with an immersive landscape.
TB: What are the biggest challenges and opportunities for Abacus Brands when it comes to licensing?
SR: The challenge is always about staying ahead — making sure that each partnership not only resonates with our current audience but also expands our reach and relevance. The opportunity lies in innovation. Every new licensing agreement gives us a chance to break new ground, pushing the boundaries of what educational toys can be through the lens of entertainment.
TB: How do your recent partnerships with Holo Toyz and BitOGenius’ Pixicade fit into the business mix?
SR: These partnerships are strategic accelerators. HoloToyz brings an augmented reality angle that enhances our digital storytelling, introducing both new licenses and age demographics into our ecosystem.
Pixicade, with its focus on turning drawings into playable video games, aligns perfectly with our mission to blend physical and digital play. Together, these partnerships strengthen our position in the market, making our offerings more robust and appealing.
TB: What do you look forward to most at Licensing Expo?
SR: It’s the fresh ideas, the new technologies, and the potential partners that I look forward to the most. It’s a melting pot of innovation, and every conversation has the potential to spark the next big idea. We’re here not just to show what we’ve done but to explore what we can do next. It’s about finding those game-changing collaborations that will continue to revolutionize how kids learn through play.
A version of this feature was originally published in The Toy Book’s 2024 Licensing & Entertainment Issue. Click here to read the full issue! Want to receive The Toy Book in print? Click here for subscription options!
