Gaiam Inks 'Brainy Baby' License, Distribution Deal19 Mar, 2007 By: Erik Gruenwedel
Gaiam Inc. March 19 announced it has signed an exclusive, worldwide, long-term licensing and production agreement with The Brainy Baby Co.
Financial terms of the deal were not disclosed.
The Broomfield, Colo.-based lifestyle and wellness media company will become the sole distributor of Brainy Baby's catalog of more than 40 DVD and CD products currently marketed under four different labels, including Brainy Baby, First Impressions, Sporty Baby and Bilingual Baby (foreign language-learning).
Atlanta-based Brainy Baby would continue to sell and service its existing specialty store network and all specialty channels.
With 46% penetration in the wellness market, including the lucrative women's fitness DVD segment, Gaiam will leverage its distribution reach to make Brainy Baby products available in what it claims is an underserved pre-school market.
“Gaiam is the perfect partner for us because of its dedication to positive lifestyle choices, and its powerful 68,000 retail [store] distribution network,” says Dennis Fedoruk, founder and president of The Brainy Baby Co.
In February, Brainy Baby launched an “adoption program” designed to give independent creators of infant videos content distribution, marketing and co-branding channels into retail.
This month Brainy Baby will roll out the program's inaugural licensed product, “Baby IQ,” a series of DVDs produced in association with the National Literary Trust in England.
Separately, Gaiam reported a 54% increase in fiscal year 2006 (ended Dec. 31) revenue to $219.5 million from $142.5 million during the same period last year.
Revenue for the quarter was $72.7 million, compared to $64.3 million last year.
The company cited increased sales due to the 2005 acquisition of GoodTimes Entertainment, in addition to a 33.7% increase in 2006 direct response marketing revenue to $93.8 million, compared to $70.2 million in 2005.
Among GoodTime's 2,000-plus titles are “The Firm” and Billy Blanks' Tae Bo fitness videos, as well as children's classics “Benji,” “The World of Peter Rabbit and Friends” and “Rudolph the Red-Nosed Reindeer.”