The World’s 25 Most Successful Media Franchises, and How They Stay Relevant
Great stories come and go, but there are a certain few that can truly stand the test of time.
Tugging on the heartstrings with nostalgic stories can be a powerful tool. Yet, even the most world-renowned storytellers like Disney face pressure to constantly innovate.
Today’s infographic from TitleMax illustrates the highest-grossing media franchises, and dives into how they generate their revenue and adapt to new mediums in changing times.
The Supreme Storytellers
According to the infographic, the majority of franchise revenue comes from merchandising. Video games, comic books, and Japanese manga are also significant drivers of income.
|Rank||Franchise||Year Created||Revenue (USD)||Main Revenue Source|
|#3||Winnie the Pooh||1924||$75B||Merchandise|
|#9||Jump Comics||1968||$34B||Comics and Manga|
|#10||Harry Potter||1997||$31B||Box Office|
|#11||Marvel Cinematic Universe||2008||$29B||Box Office|
|#15||Dragonball||1984||$24B||Comic and Manga|
|#17||Fist of The North Star||1983||$22B||Video Games|
|#20||One Piece||1997||$20B||Comics and Manga|
|#21||Lord of The Rings||1937||$20B||Book Sales|
|#22||James Bond||1953||$20B||Box Office|
Perhaps surprisingly, Marvel is not included in the top 10. Despite nearly $30 billion revenue and a long history rooted in comic books, the entertainment behemoth still has much ground to cover as the newest franchise in the ranking.
Reinventing a Classic
While the list proves that success builds over time, these classics need to constantly reinvent themselves as their audiences become reliant on new technologies and demand more immersive experiences.
As the highest grossing media franchise earning roughly $4 billion a year, Pokémon’s strength lies in it ability to adapt to new technology.
The Japanese phenomenon has continued to reposition itself since it first introduced Pokémon cards in 1996. These days, the franchise is perhaps best known for bringing augmented reality to the masses with Pokémon Go—an app that attracted 50 million users in just 19 days.
Yet another Japanese brand tops the list of media franchises. With 50,000 product lines available in over 130 countries and cumulative revenue of $80 billion, Hello Kitty is famous for harnessing the power of cute.
The fictional character has evolved into a globally recognized symbol as a result of big name partnerships and licensing deals with the likes of Puma, Asos and Herschel—and is etched onto almost every type of accessory thinkable.
More recently, the brand announced its foray into video games, and will collaborate with the global esports organization FNATIC on content and merchandise.
Winnie the Pooh
The chronicles of Winnie the Pooh have transcended time by providing a connection to the innate wonder of childhood.
Originally created following World War I, the newest movie rendition “Christopher Robin” became the highest-grossing film in the franchise, grossing $197 million worldwide.
With 97% brand name recognition, Mickey Mouse is officially more recognizable than Santa Claus. Similarly to Winnie the Pooh, Disney introduced Mickey Mouse as a symbol of hope following the World War.
Over 90 years later, global brands such as L’oreal, Beats, Uniqlo and more recently, Gucci are paying homage. In 2019, the luxury fashion brand licensed the Mickey Mouse image for a 3D printed bag worth $4,500, making it even more of a ubiquitous symbol of pop culture.
Another Disney favorite, Star Wars holds the title of most successful movie franchise, with cumulative revenues of $65 billion.
The franchise successfully appeals to a multi-generational audience by mixing old characters with new storylines, such as ‘The Mandalorian’, broadcasting on the new streaming service Disney+—hailed as one of the more exciting moves to come from the saga.
Disney owns three out of the top five highest grossing franchises, so it comes as no surprise that the media conglomerate is investing heavily in digital innovation to provide a more immersive customer experience.
In fact, every franchise in the ranking relies on multiple touchpoints and revenue streams to create a more interactive and emotional experience for their audience.
By harnessing a compelling combination of both imagination and technology, Disney and other top global franchises can continue to lead in the business of making magic.
The Dominance of U.S. Companies in Global Markets
U.S.-based companies have a heavy weighting in global equity markets. In most industries, their market capitalization exceeds 50% of the total.
U.S. Companies Dominate Global Markets
Are global indexes as “global” as you think they are?
With the aim of tracking market performance around the world, these indexes incorporate securities from various regions. However, while the number of securities may be relatively well diversified across countries, a dollar perspective tells a different story. When market capitalization is taken into account, country weightings may become much more unbalanced.
Today’s visualization is based on a concept by S&P Dow Jones Indices that shows the percentage of U.S.-based companies in global sectors and industries as of December 31, 2019. The calculations reflect the market capitalization of companies in the S&P Global Broad Market Index (BMI), an index that tracks over 11,000 stocks across 50 developed and emerging economies.
Percentage of U.S. Companies by Sector
U.S-based companies—those that maintain their primary business affairs in the U.S.—are a major component of many global sectors and industries.
Here’s how it breaks down:
|Sector||% of U.S.-based Companies||Most U.S.-heavy Subsector|
|Information technology||73%||Software (86%)|
|Health care||65%||Health care providers (82%)|
|Utilities||53%||Electric utilities (57%)|
|Real estate||51%||Equity REITs (69%)|
|Consumer discretionary||49%||Specialty retail (73%)|
|Consumer staples||46%||Household products (74%)|
|Industrials||46%||Aerospace & defense (73%)|
|Energy||44%||Energy - other (73%)|
|Financials||44%||Financials - other (73%)|
U.S.-based companies make up a staggering 73% of the information technology (IT) sector. However, China may soon threaten this dominance. The Made in China 2025 plan highlights new-generation IT as a priority sector for the country.
The U.S. is still the world’s leader, but China is coming up very fast.
—Rebecca Fannin, Journalist & Author of Tech Titans of China
Healthcare is also heavily skewed towards U.S-based stocks, which make up 65% of the sector’s market capitalization. This weighting is perhaps not surprising given the success of many U.S. healthcare companies. In Fortune’s list of the 500 most profitable U.S. companies, 41 healthcare organizations made the cut.
The materials sector has the smallest weighting of U.S.-based stocks, but they still account for almost one-third of the overall market capitalization. Three American companies are in the sector’s top 10 holdings: Air Products & Chemicals, Ecolab, and Sherwin-Williams.
U.S. Equity Views in a Global Context
Given the high weighting of U.S. stocks in global sectors and industries, having a U.S. view is important. This refers to investors gaining a clear perspective on the risks and opportunities that exist in the country. Investors can consider the trends influencing American companies in order to help explain stock performance.
U.S. stock dominance also impacts geographic diversification. While it helps non-U.S. investors overcome their home bias, American investors may want to consider targeting specific international markets for well-rounded exposure.
Intangible Assets: A Hidden but Crucial Driver of Company Value
Intangible assets – such as goodwill and intellectual property – have rapidly risen in importance compared to tangible assets like cash.
Intangible Assets Take Center Stage
View the high resolution version of this infographic by clicking here
In 2018, intangible assets for S&P 500 companies hit a record value of $21 trillion. These assets, which are not physical in nature and include things like intellectual property, have rapidly risen in importance compared to tangible assets like cash.
Today’s infographic from Raconteur highlights the growth of intangible asset valuations, and how senior decision-makers view intangibles when making investment decisions.
Tracking the Growth of Intangibles
Intangibles used to play a much smaller role than they do now, with physical assets comprising the majority of value for most enterprise companies. However, an increasingly competitive and digital economy has placed the focus on things like intellectual property, as companies race to out-innovate one another.
To measure this historical shift, Aon and the Ponemon Institute analyzed the value of intangible and tangible assets over nearly four and a half decades on the S&P 500. Here’s how they stack up:
In just 43 years, intangibles have evolved from a supporting asset into a major consideration for investors – today, they make up 84% of all enterprise value on the S&P 500, a massive increase from just 17% in 1975.
The Largest Companies by Intangible Value
Digital-centric sectors, such as internet & software and technology & IT, are heavily reliant on intangible assets.
Brand Finance, which produces an annual ranking of companies based on intangible value, has companies in these sectors taking the top five spots on the 2019 edition of their report.
|Rank||Company||Sector||Total Intangible Value||Share of Enterprise Value|
|1||Microsoft||Internet & Software||$904B||90%|
|2||Amazon||Internet & Software||$839B||93%|
|3||Apple||Technology & IT||$675B||77%|
|4||Alphabet||Internet & Software||$521B||65%|
|5||Internet & Software||$409B||79%|
|7||Tencent||Internet & Software||$365B||88%|
|8||Johnson & Johnson||Pharma||$361B||101%|
|10||Alibaba||Internet & Software||$344B||86%|
|12||Procter & Gamble||Cosmetics & Personal Care||$305B||101%|
Note: Percentages may exceed 100% due to rounding.
Microsoft overtook Amazon for the top spot in the ranking for 2019, with $904B in intangible assets. The company has the largest commercial cloud business in the world.
Pharma and healthcare companies are also prominent on the list, comprising four of the top 20. Their intangible value is largely driven by patents, as well as mergers and acquisitions. Johnson & Johnson, for example, reported $32B in patents and trademarks in their latest annual report.
A Lack of Disclosure
It’s important to note that Brand Finance’s ranking is based on both disclosed intangibles—those that are reported on a company’s balance sheet—and undisclosed intangibles. In the ranking, undisclosed intangibles were calculated as the difference between a company’s market value and book value.
The majority of intangibles are not reported on balance sheets because accounting standards do not recognize them until a transaction has occurred to support their value. While many accounting managers see this as a prudent measure to stop unsubstantiated asset values, it means that many highly valuable intangibles never appear in financial reporting. In fact, 34% of the total worth of the world’s publicly traded companies is made up of undisclosed value.
“It is time for CEOs, CFOs, and CMOs to start a long overdue reporting revolution.”
—David Haigh, CEO of Brand Finance
Brand Finance believes that companies should regularly value each intangible asset, including the key assumptions management made when deriving their value. This information would be extremely useful for managers, investors, and other stakeholders.
A Key Consideration
Investment professionals certainly agree on the importance of intangibles. In a survey of institutional investors by Columbia Threadneedle, it was found that 95% agreed that intangible assets contain crucial information about the future strength of a company’s business model.
Moreover, 98% agree that more transparency would be beneficial to their assessment of intangible assets. In the absence of robust reporting, Columbia Threadneedle believes active managers are well equipped to understand intangible asset values due to their access to management, relationships with key opinion leaders, and deep industry expertise.
By undertaking rigorous analysis, managers may uncover hidden competitive advantages—and generate higher potential returns in the process.
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