IP (Intellectual Property)
Creative assets like characters, stories, brands, or concepts that can be legally protected and exploited commercially across multiple platforms.
Definition
Intellectual Property (IP) in entertainment refers to copyrighted or trademarked creative works—characters, stories, franchises, formats—that can be licensed, adapted, and monetized. Strong IP can be exploited across films, TV, games, merchandise, theme parks, and more.
Studios increasingly prioritize "IP-driven" content over original stories because established IP brings built-in awareness and audience affinity. This explains the proliferation of adaptations, reboots, and franchise films—they leverage pre-existing IP value to reduce marketing costs and perceived risk.
Why It Matters
IP is the most valuable asset in modern entertainment. Disney's worth is largely in its IP portfolio (Mickey Mouse, Marvel, Star Wars, Pixar characters). Understanding IP ownership, valuation, and exploitation is essential for anyone in entertainment business.
For creators, retaining IP rights can be life-changing. Creators who own their IP control adaptation rights, licensing, and long-term exploitation. Those who sign away IP rights watch others profit from their creations. IP terms in contracts often matter more than upfront payment.
Examples in Practice
J.K. Rowling retains significant Harry Potter IP rights, generating billions from films, theme parks, merchandise, and stage plays—demonstrating the value of IP control.
A comic book creator sells IP to a studio for $50,000, then watches that property generate $500 million in films and merchandise they don't participate in—illustrating why IP retention matters.
A streamer develops original IP specifically to own all rights—creating franchises they can exploit without sharing revenue with IP licensors as they would with adapted properties.