Theme parks and attractions such as Alton Towers and Madame Tussauds are big business in the UK, with visitors pushing up profits year on year as they attempt to fill their leisure time. Now the UK is set to gain another themed attraction with a modern twist, as entertainments giant Merlin has struck a deal with DreamWorks Animation to create a series of entertainment venues based on the studio’s popular Shrek movie series.
Merlin Entertainments, the group behind the London Dungeons, Legoland and the Sea Life aquarium venture, entered into a partnership with DreamWorks – the first such agreement since its stock market flotation in November last year. Although the deal will see Merlin open the Shrek-themed attractions in different cities throughout the world, one of its conditions was that the first would be based in its home territory.
As a result, London’s South Bank has been selected to play host to the first of the themed attractions which is set to open its doors at County Hall during the summer of 2015.
The attraction will follow a similar format to the neighbouring London Dungeons concept, where costumed actors lead visitors through an interactive series of scenarios interspersed with special effects and will be based on a new storyline provided by DreamWorks.
DreamWorks’ chief executive, Jeffrey Katzenberg, explained the appeal of the genre, saying; “This is like a living theatre that the audience participates in.
“It is much, much more interactive than your local movie theatre, but it is not quite on the level of a major West End production.”
In addition to the London version of “Shrek’s Far Far Away Adventure”, Merlin will be responsible for establishing another five “Shrek and friends” attractions across the globe in the next nine years. However, Merlin chief executive Nick Varney believes this aspect of the deal could be further negotiated to create between 20 and 30 international bases should the initial six trial versions of the attraction prove popular with visitors.
Mr Katzenberg agrees that expanding the scheme further could prove profitable to both parties.
He says; “There is no question that there is an opportunity to build more than six of these.
“This is a very solid annuity for DreamWorks – not only do the attractions create a very solid, reliable income stream for us, but they are great for the DreamWorks brand.”
DreamWorks will receive a royalty from Merlin based on an agreed percentage of turnover which Mr Varney has confirmed will lie in the “mid-single digits.” Despite the fact that each of the six worldwide attractions will require investment from Merlin of around £7 million to £8 million, the relatively low royalty percentage could mean that the Shrek attractions will prove to be extremely lucrative for the entertainments firm.
With consumer spend creeping up once more and London being a prime international destination for tourists, it seems that this cross-Atlantic partnership could be set to continue well into the future.
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