Back in 2009, Finnish studio Rovio was desperate for a hit and went through a bunch of ideas, but one stood out. “[It was] a bunch of angry-looking bird characters,” says Rovio franchise development VP Ville Heijari. “Everybody fell in love with them, so we decided to use them.”

The call was a sound one, and Angry Birds has become the top selling paid app on the App Store and has been downloaded over 200 million times. “Anything from 500 to 1 million downloads [was] our most optimistic plan,” says Heijari. “The success has been quite staggering.”

Rovio has ridden this success with merchandise like plush toys, T-shirts and phone cases, with a board game upcoming. “We had the prototype, got in contact with Rovio, and got a deal going pretty quickly,” says Mattel marketing manager Ray Adler.

All of this is a calculated plan, not unlike the way Disney expanded into a media empire. “Rovio is taking the long view, building brand equity in the long term,” said Richard Gottlieb, publisher of Global Toy News, noting that margins on licensing deals are likely 10 percent to 12 percent. “It’s substantial, incremental income.”

While some are wondering if Angry Birds will eventually fall out of fashion, Rovio is looking towards more spin-off merchandise in the U.S. “We could see Angry Birds bubble gum to card games to theme parks,” Heijari says.

Source: AdWeek