It’s paying early dividends for toymaker Funko (FNKO) to be in the vibrant Disney+ ecosystem.
“We are really excited about the start with Disney+. Our demand for the Mandalorian is through the roof,” Funko CEO Brian Mariotti said on Yahoo Finance’s The First Trade.
The pop culture centric toymaker is known for its speed to market — especially around the launches of new streaming content (see toys for Mandalorian) and movies (see toys out already pegged to the upcoming releases of Frozen 2 and Star Wars) — so it’s no shock to hear Mariotti call out success with what looks to be a very well-received Disney+ launch.
Disney said it signed up an astounding 10 million subscribers for its new streaming service within 24 hours of its launch on November 12.
Beyond Disney+-related content, Mariotti is rather bullish on what’s in the pipeline for 2020.
“We are excited about 2020’s content slate, obviously a much larger relationship with Pokemon. We are excited about Marvel’s Eternal in the fall, the Wonder Woman sequel and the Harlequin sequel and tons of TV shows. It’s not an A-plus year for content like 2019, but there is tons of stuff to keep us busy.”
Wall Street is perhaps a bit more mixed on Funko’s 2020 potential after such a sterling 2019. Funko’s stock is down slightly this year relative to the 24% gain on the S&P 500. Worries on how Funko will counteract a fresh set of tariffs on Chinese goods later this year may also be weighing on the stock.
Mariotti reiterated Funko is well prepared to navigate any new trade concerns.
“We are ahead of the curve. 70% of our products are produced outside of China. The remaining 30% gets distributed all over the world. If the tariffs are enacted, we have a plan to either lower cost of goods in China or move products out of China or pass some of that onto our North America retailers. We are in a phenomenal position if the tariffs are truly enacted. So there isn’t really any concern for us,” Mariotti says.