Jun 10, 2008 6:02 AM, PROMO Xtra

U.S. licensing revenue dropped slightly to $5.98 billion in 2007 from $6.04 billion in 2006, a dip of .8%.

Character licensing, which includes entertainment, TV and movie licensing, was the only category to show growth last year, although not much. Revenue rose by 1.1% to $2.71 billion, up from $2.68 billion in 2006, a recent study by the International Licensing Industry Merchandisers Association (LIMA) found.

“The current soft economic conditions in North America have contributed to the relatively flat performance in 2007,” Charles Riotto, LIMA president, said in a statement. The decline follows three consecutive years of growth, he added.

Trademarks and brands ranked second in revenue, but fell by 2.7%. The category reported $1.09 billion in 2006 versus $1.06 billion in 2007. Likewise, fashion-licensing revenue dipped 2.5% from $830 million in 2006 to $810 million last year.

Sports ranked fourth in overall industry spending at $815 million, down from $825 million in 2006. Music fell by the largest margin (5.5%) to $125 million from $132 million in 2006, while the collegiate category showed a minor bump at a .9% decline to $201 million from $203 million in 20006.

Licensing revenue for publishing was the sole category to hold flat year over year at $41 million, the study said.

Despite the downturn in revenue, Riotto predicts a bright future for the licensing industry.

“In light of what is taking place in the financial and retail communities, I feel our industry performance was very positive and bodes very well for the business of licensing when economic times improve,” he said.

The study was released one day before the start of the Licensing Show, which runs and runs through Thursday at the Jacob Javits Center in New York. The report, the 10th annual, is conducted by the Yale School of Management and the Harvard Business School.

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