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Thursday July 03, 2008

Blue's Clues and Hello Kitty join paws

15:16, Wed 18 Oct 2006

TOKYO (Reuters) - Blue's Clues, a hit U.S. cartoon series about the adventures of a blue puppy, needs the help of a little kitty to make it in Japan.

U.S. media conglomerate Viacom and Japan's Sanrio Co., owner of the popular Hello Kitty character, have tied up to promote the Blue's Clues merchandise in the world's No. 2 retail market.

Sanrio and Viacom, whose Nickelodeon unit controls the Blue's Clues property, plan to develop a limited edition product line combining the two characters for sale at select retailers from next spring.

Viacom has also granted Sanrio the licence in Japan for Blue's Clues goods including toys, apparel, stationery, electronics, and accessories like straps for mobile phones.

Those products should hit the shelves in summer 2007.

"We think the teens and the office ladies and a whole host of other fans are going to enjoy seeing Hello Kitty in this new light and being introduced to Blue's Clues," Leigh Anne Brodsky, president of Nickelodeon and Viacom Consumer Products, told Reuters.

Brodsky said Blue, the animated star of the Nickelodeon series, had to be redrawn to tailor her to Japanese tastes and ensure she is compatible with her kitty co-star.

"The character has become rounder and it has been adjusted and modified in a creative way so that Blue works in the Hello Kitty world," she said.

Blue's Clues is syndicated in 120 countries and related merchandise has generated $3.6 billion (1.9 billion pounds) in retail revenue since its launch 10 years ago. Hello Kitty is 33 and one of Japan's biggest cultural exports, emblazoned on goods in 60 countries.

Sanrio said it was aiming for about 3 billion yen (13.5 million pounds) in retail sales from the venture in the first year. Sanrio and Viacom will split the royalties, which in the industry typically come to about 10-15 percent, Brodsky said.

The partnership marks the latest move by Viacom to expand its business in Japan.

In August, Viacom's music broadcasting unit MTV Networks agreed to make MTV Japan a wholly owned unit by buying out the stake of a private equity firm.

The media giant has also been promoting merchandise of the popular cartoon character SpongeBob Squarepants, which has generated about $20 million at retail so far this year.

Helped by the Hello Kitty alliance, Brodsky said she hoped her unit, a $5.2 billion business worldwide in terms of retail sales, would eventually blossom into a $1 billion business in Japan.

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