RUGRATS—Universal Taps Nickelodeon to Help Attract Children

A blue dog and a bunch of rowdy toddlers are moving to Universal Studios. No, it’s not a new movie. It’s real life sort of. The dog, Blues Clues, and toddlers, the Rugrats, are characters from the Viacom Inc.-owned Nickelodeon cable channel who will have their own attractions and merchandise at the theme park under a deal between the channel and the studio. Owned by Vivendi Universal, the studio plans to develop two major attractions, cross-promote products and sell Nickelodeon merchandise in its two U.S. theme parks, here and in Orlando, Fla. With this strategy, Universal hopes to attract more families with younger children to its parks. Under the agreement, Universal Studios Hollywood will open “Nickelodeon Blast Zone” this month featuring rubber balls and several thousand gallons of splashing water in a 30,000-square-foot interactive adventure, complete with characters from the cable outlet’s shows. The new attraction will feature a large water play area, an indoor ball arena and an area especially geared for toddlers. The Blast Zone will be next to another attraction, “Rugrats Magic Adventure,” a stage for music, magic shows and other interactive entertainment based on the characters from the “Rugrats” cartoon series. Construction will begin in June on a second Nickelodeon attraction at Universal Orlando where Nickelodeon Studios Florida is located. The new Florida version of the Hollywood attraction will open in early 2002, the company said. Peggy Charren, an independent children’s media consultant, said the Nickelodeon agreement would attract more families with young children to Universal. “Universal appeals to older kids and now they have a chance to attract a younger audience,” she said. Charren said Universal already has young adults and teens who come to its thrill rides and attractions, but it has had limited success in attracting young children, like the Walt Disney Co. has had with its parks. Nickelodeon spokeswoman Sarah Levin said the Nickelodeon characters would bring instant visibility to Universal as a leisure stop for young parents. “The characters are very popular and have a built-in audience,” she said. Also important is the potential revenue the sale of Nickelodeon merchandise could bring to the studio. Although the studio itself won’t comment on revenue figures, Levin said Nickelodeon merchandise sales totaled about $2 billion last year, with the bulk coming from Rugrats and Blues Clues items. Garry Bickett, vice president of marketing for Viacom Inc.’s Paramount Parks, said theme parks can’t afford to ignore merchandising opportunities. “It’s another way to increase your revenue if you’re a park operator,” he said. While the new attractions at Universal Hollywood will be ready for the busy summer season, the studio hopes to cash in on future combined promotions with Nickelodeon, steering more parents and their children to the theme park all year round. “We hope to make the park more kid-friendly and more interesting to all our visitors,” said Eliot Sekuler of Universal. Universal amusement parks posted $45 million in operating income in 1999 from $1.1 billion in revenue, up from the $24 million garnered in 1998 on $984 million in revenue. Those figures were tempered by a 5-percent drop in attendance at Universal Studios Hollywood in 1999. In 2000, Universal Hollywood’s attendance increased by 2 percent over the previous year, bringing it to 5.2 million visitors, according to the trade publication Amusement Business. Universal, which does not disclose its attendance numbers, would not discuss the figures. The publication said it based its statistics on its contacts at the park and tourism organizations. Amusement Business ranked Universal Hollywood eighth in the U.S. in total attendance while its sister park in Orlando, with 8.1 million visitors, was sixth. Topping the list was the Magic Kingdom at Walt Disney World with 15.4 million visitors. Amusement Business noted that overall theme park attendance in the U.S. rose by 3 percent in 2000. Universal Studios Japan opened in Osaka, Japan last week and other theme parks are planned in Asia, Europe and Latin America. But, Tom Williams, chairman and chief executive officer of Universal Studios Recreation Group, said, the Nickelodeon deal involves only the parks in Orlando and Universal City, since the following for the Rugrats and other Nickelodeon characters is strongest in the United States. “We’re very excited to enhance and extend our partnership with Nickelodeon,” said Williams.