Penguins' Journey to Brand & IP Success | Luca Netz
This article is a summary of a YouTube video "Pudgy Penguins Path to Legacy Brand & IP Powerhouse | Luca Netz" by Empire
TLDR The licensing of NFTs and the creation of physical toys allows Pudgy Penguins to generate significant revenue, build a community, and expand into different directions, ultimately becoming a successful and beloved brand.
Value Accrual and Monetization in NFTs
The licensing of NFTs from the collection enables the company to create products and content, offering the opportunity for individuals to earn royalties, highlighting the importance of value accrual in the success of the business.
The acquisition of Pudgy Penguins for $2.5 million was seen as a no-brainer opportunity by those who understood the potential of NFTs and believed in the future of IP and brands in the space.
The value and potential for monetization in the NFT space lies in the ownership of unique assets that provide utility and access, allowing creators to license their NFTs for the production of products and earn royalties.
"I'm printing money 10 different ways just to give you an idea" - The speaker emphasizes the profitability and success of their character brands, highlighting their ability to generate significant revenue.
Pudgy Penguins licenses every piece of product and content from the holder, allowing them to leverage the value of their 888 minted penguin characters on the blockchain.
Building a Beloved Character and Legacy Brand
Creating physical toys alongside digital collectibles provides a safety net, allows for long-term value growth, and enhances emotional attachment and awareness among consumers.
The brand aims to create a character that brings joy and positivity, appealing to a wide range of age groups and building a community around their ethos and vision.
The path to becoming a legacy brand involves creating multiple touch points and consistently delivering a product that customers love.
Building a beloved character like the Pudgy Penguin allows for the potential to expand into different directions and reach a wider audience.
"We are a brand for everybody so you can do what you want with your penguin as long as it's not harmful sexist racist or something weird right."
Licensing and Expansion Opportunities
By selling $10 toys with QR codes and birth certificates that lead to blockchain wallets, Pudgy Penguins is onboarding people into the world of digital collecting without them even realizing it, making it a unique and meaningful experience.
Licensing is a lucrative business model, as seen with successful brands like Pokemon and Hello Kitty, who make billions of dollars a year from licensing rather than creating their own products.
Pudgy Penguins made a million dollars in the first couple of days after launching their plushies collectibles on Amazon.
The licensing platform built by the Pudgy Penguins team will not only benefit their own community but also other projects in the NFT space, offering a pure and above-board form of utility between holders and brands.