How does disney handle toy licensing for its film franchises?

Films produce income from several revenue streams, with theatrical box‑office earnings being the most visible. Beyond ticket sales, studios also monetize home video, television broadcast rights, and merchandising. The Wikipedia entry on highest‑grossing films notes that merchandising is a recognized part of a film’s earning profile. While the source does not detail Disney’s specific processes, it confirms that toy licensing is one of the channels through which a studio can convert a film franchise into additional revenue. In practice, a studio will grant a license to a toy manufacturer, allowing the creation and sale of character‑based action figures, dolls, and other products. These licensing agreements are typically negotiated to ensure brand consistency and financial benefit, and they form a key component of a franchise’s long‑term profitability. However, the provided evidence does not give particulars on Disney’s internal policies or the identities of its licensing partners, so any further detail would require additional sources.