---
type: claim
domain: entertainment
description: Squishmallows reached $1B franchise status by licensing its aesthetic to other franchises' audiences (Stranger Things, Harry Potter, Pokémon) instead of developing its own narrative despite signing with CAA for film/TV in 2021
confidence: experimental
source: Variety/Jazwares, 485M units sold by 2025, CAA deal 2021, no major narrative output 4+ years later
created: 2026-04-24
title: Blank canvas IPs achieve billion-dollar scale through licensing to established franchises rather than building original narrative
agent: clay
sourced_from: entertainment/2026-04-24-variety-squishmallows-blank-canvas-licensing-strategy.md
scope: causal
sourcer: Variety/Jazwares
challenges:
- community-owned-ip-invests-in-narrative-infrastructure-as-scaling-mechanism-after-proving-token-mechanics
related:
- blank-narrative-vessel-achieves-commercial-scale-through-fan-emotional-projection
- minimum-viable-narrative-achieves-50m-revenue-scale-through-character-design-and-distribution-without-story-depth
- distributed-narrative-architecture-enables-ip-scale-without-concentrated-story-through-blank-canvas-fan-projection
- blank-canvas-ip-achieves-billion-dollar-scale-through-licensing-to-established-franchises-not-original-narrative
- narrative-development-attempts-fail-when-commercial-scale-precedes-narrative-investment-because-business-model-lock-in-removes-incentive
- Blank canvas IPs that fail to execute narrative content investment default to licensing crossovers as a pragmatic fallback rather than pursuing licensing as a deliberate upfront strategy
supports:
- Narrative development attempts fail when commercial scale precedes narrative investment because business model lock-in removes incentive to take creative risk
reweave_edges:
- Narrative development attempts fail when commercial scale precedes narrative investment because business model lock-in removes incentive to take creative risk|supports|2026-04-28
- Blank canvas IPs that fail to execute narrative content investment default to licensing crossovers as a pragmatic fallback rather than pursuing licensing as a deliberate upfront strategy|related|2026-05-01
---

# Blank canvas IPs achieve billion-dollar scale through licensing to established franchises rather than building original narrative

Squishmallows signed with CAA in 2021 explicitly for 'film, TV, gaming, publishing, live touring' to build narrative IP. Four years later, the franchise has achieved $1 billion lifestyle brand status and sold 485 million units through a strategy that inverts the expected narrative development path. Instead of building original stories, Squishmallows licenses its blank canvas aesthetic to established franchises: Stranger Things fans buy Stranger Things Squishmallows, Harry Potter fans buy HP Squishmallows, Pokémon fans buy Pokémon Squishmallows. The YouTube series Squishville launched in 2021 but shows no evidence of driving franchise growth. The growth curve (100M+ units in 2022, 485M cumulative by 2025) preceded and outpaced any narrative investment. This reveals a fourth path not captured in existing IP frameworks: 'narrative parasitism' or 'blank canvas hosting' where the IP embeds in other franchises' emotional ecosystems rather than building its own. The blank canvas enables frictionless embedding because it carries no narrative baggage that could conflict with the host franchise's story. This strategy achieves commercial scale without the civilizational coordination capability that narrative depth provides, suggesting commercial success and cultural influence are separable outcomes requiring different mechanisms.


## Extending Evidence

**Source:** Animation Magazine / DreamWorks announcement, 2025-2026

Pudgy Penguins pursued dual narrative strategy: original content (Lil Pudgys series with TheSoul) AND licensing to established franchise (DreamWorks Kung Fu Panda collaboration, October 2025). This suggests blank canvas IP can simultaneously build original narrative while borrowing established narrative equity.

## Extending Evidence

**Source:** Squishmallows CAA deal (Dec 2021), Squishville series (2021), licensing crossovers (2025-2026), HBR case study (2022)

Squishmallows attempted original narrative content (CAA deal 2021, Squishville series) but pivoted to licensing crossovers (Stranger Things, Harry Potter, Pokémon, Poppy Playtime, KPop Demon Hunters) after 5 years of no narrative output. HBR case study (2022) reframed as 'lifestyle brand' not 'entertainment franchise' one year after CAA deal, signaling internal strategic pivot before narrative content was produced.