The Funko Economy.
For the last ten years, I’ve been visiting comic cons and exploring the pop culture space and one aspect of all comic cons that make them special, is the Funko spaces. For a first-time Comic Con attendee, one may not notice, but most cons are fueled by the Funko Economy. Similar to McDonald’s and their possible business model, one can’t go farther than a ¼ mile in a con before you run into a Funko seller/reseller. And while every reseller has their own genre of collections to sell, one characteristic is certain, they get them from a source, the main plug. Depending on where you go and how you obtain them, the Funko economy has been the lifeblood of pop culture for the last ten or so years with thriving businesses all across the country.
Because action figures have increased in price with their many points of articulation and excessive branding, the Funko pop has been the go-to item for the average collector. With its inexpensive price tag and flare for specializing in various media, the Funko, for some, is still the blood of pop culture. But lately, its presence has declined in value and popularity.
The Funko economy is directly tied to popularity of the media it represents: video games, movies, streaming shows and its popular characters. Depending on the character, situation, episode, or movie scene, a Funko’s value could either increase or decrease. For example, Planet Arlia Vegeta, considered a grail among Funko collectors, was historically going for $3,500–$5,800 in the past, but has now decreased to $1,000, representing a drop of approximately 71–79%. I believe the Funko Pop is possibly a keystone species (Bio Term) for the ecosystem of pop culture.
SideNote: A keystone species is an organism that plays a critical role in its ecosystem, having a much bigger impact than its numbers would suggest. Whether it is present or not can strongly shape the ecosystem’s structure, diversity, and overall balance. If a keystone species is removed, it can cause major changes, often destabilizing the ecosystem and affecting many other plants and animals.
The Funko Pop is considered a keystone species within the pop culture economy because it functions as a reference point for value, popularity, and collector behavior for almost every piece of media in pop culture. If it’s a TV series, manga, anime, movie, superhero, or villain, they probably made it, depending on the product and its popularity. Almost everyone has at least one Pop, that little piece of nostalgia that reminds us of our favorite character. When Marvel and DC action figures took a price hike, Funko became the inexpensive option. Usually priced around $14.99, the pop culture trinket has become a memory, a love, a high, or a business.
Resellers, actioners, black market dealers; the Funko economy has created many entrepreneurs involved in pop culture. Furthermore, the brand has spawned a multitude of dealers and third-party traders. eBay, Whatnot, Facebook Marketplace, the sellers and dealers are everywhere. And just as a keystone species stabilizes an ecosystem, Funko influences the perceived worth of similar collectibles and shapes trends across the collector community, especially at comic cons. Its availability, variety, and brand provide signals to both casual buyers and serious collectors, guiding buying patterns, resale dynamics, and the cultural relevance of other figures in the same franchise or category.
Financial Issues
For over the years the face of the Funko has been Brian Mariotti, and under his leadership the Funko brand became the number one pop culture brand. Additionally, it became collectible of the year in 2017 and 2018. And while the company has had some major successes within the industry, it has also had its share of controversy:
2017 – IPO Lawsuit: Funko was accused of misleading investors with overstated financials and undisclosed inventory issues ahead of its IPO. The company eventually settled for around $14.75 million.
2022 – Inventory Write‑Down / Destruction: Funko announced it would eliminate $30–36 million in excess inventory due to overproduction and warehouse constraints.
2022 – Potential Securities Fraud
2022 – EBAY Partnership, black market controversy and counterfeit Funkos.
2023 – CEO Resignation & Lawsuit Settlement: Former CEO Brian Mariotti resigned in September 2023 after settling a lawsuit over misleading statements about sales, inventory, and financial disclosures. Funko agreed to pay over $2.1 million in legal fees.
This last lawsuit, in which the company had to pay over $2.1 million (US) in legal fees because of “false and misleading statements” to shareholders led to some new blood entering the company:
2024 (May) – Funko appointed Cynthia Williams as Chief Executive Officer of Funko bringing in 2 decades of leadership within the gaming industry as president of Hasbro’s Wizards of the Coast and Hasbro Gaming division, where she managed franchises like Dungeons & Dragons, Magic: The Gathering, and Monopoly. A year later she is removed from the company.
2025 - After a brief Interim CEO (Michael Lunsford) takeover, the reigns of the company were transferred to Josh Simon (Netflix).
Josh’s experience comes from the consumer products division of Netflix where he ran its merchandising division. He’s also responsible for the Netflix’s first e-commerce platform and managed retail partnerships with Walmart, Target, and additional retailers. He’s also grew the Netflix Experience launching more than 40 experiences across 300 cities around the world. In other words, he’s the best at what he does:
Netflix Experience:
Josh Simon
Served as Vice President, Consumer Products, overseeing global merchandise, and live experiences
Built and scaled the division, creating products for hit titles like Stranger Things, Bridgerton, Squid Game, and many others.
Launched Netflix’s first e-commerce platform for consumer products.
Managed relationships with major retailers including Walmart, Target, and Primark.
Oversaw Netflix’s Experiences business, launching 40-plus unique events across 300 cities worldwide
Nike Experience:
Held several senior management roles, most recently as VP and Head of Global Strategy for product, design, merchandising, and categories.
Film & Media Experience:
Oversaw feature film production and development at Disney’s Motion Picture Group, DreamWorks, and Disney’s corporate strategy and development group.
SideNote: I have Netflix and still stream from them. I’ve also read their manifesto, No Rules Rules: Netflix and the Culture of Reinvention by Reed Hastings and Erin Meyer. Netflix’s motto is “the best of the best of the best.” He knows how save this company.
New Blood/New Moves
Josh comes to Funko with an experience that could boost the funko economy. Given his experience, especially within Netflix’s merchandising division, he could create lanes in which Funko could be the prime collectible toy once again:
Boosting Collector Hype Through Limited Editions
Josh could design exclusive, event based Funko Pops tied to major pop culture releases. By carefully timing drops and creating limited runs, he could increase demand, drive secondary market interest, and restore the “collectible thrill” that keeps Funko valuable.Optimizing E-Commerce Sales
Leveraging his experience building Netflix’s first e-commerce platform, Josh could improve Funko’s online store, implement dynamic pricing, and create personalized collector recommendations. This could increase direct-to-consumer sales, reduce reliance on third-party retailers, and improve inventory management.Expanding Fan Experiences
Josh could roll out interactive Funko experiences like pop-up exhibitions (aside from comic cons), immersive events, or collectible conventions in major cities. These experiences would deepen fan engagement, create social media buzz, and enhance the brand’s emotional connection with collectors.Strengthening Retail Partnerships
Using his background managing Walmart, Target, and Primark relationships, Josh could negotiate better in-store promotions, exclusive retailer variants, or co-branded product lines, ensuring Funko remains highly visible and desirable in mainstream retail spaces.Global Market Expansion
Josh could take Funko into new international markets by replicating Netflix’s global merchandise strategies, tailoring releases to local fan favorites, and scaling operations efficiently. This could open new revenue streams and increase Funko’s influence as a global pop culture brand.
These are just a few scenarios that could propel Funko back to new heights. However, there is the matter of the debt issue. Here’s how he could possibly save it:
Boost Direct-to-Consumer Sales
By enhancing Funko’s e-commerce platform, Josh could increase margins on each sale, reducing reliance on third-party retailers and improving cash flow to pay down debt faster.Launch High-Margin Exclusive Products
Creating limited-edition Pops and new exclusive collaborations would generate hype and allow Funko to charge premium prices (aside from Funko Plus), increasing revenue without a proportional rise in production costs.Expand Global Markets Strategically
Targeting international markets with strong fan bases would open new revenue streams, diversifying income and providing additional funds for debt reduction.Leverage Partnerships and Licensing Deals
By strengthening retailer and licensing partnerships, Josh could secure upfront payments or guaranteed minimum orders, which provides immediate cash inflows to address debt commitments.
And let’s not forget the major issue with Funkos...overproduction. Overproduction has been one of Funko’s biggest problems. Josh, I believe he can handle this problem as well:
Limited Edition and Event-Based Releases
By strategically creating limited runs or timed exclusives, he could generate hype while controlling inventory, reducing the risk of excess stock that must be discounted or destroyed.Streamline Supply Chain Management
Leveraging his experiences at Netflix, Josh could improve production scheduling, warehouse management, and distribution efficiency, which would help prevent unsold inventory from piling up.Pre-Order Systems and Crowdfunding-Like Drops
Introducing pre-orders or small-batch launches would allow Funko to produce only what collectors are committed to buying, reducing waste and mitigating risk from overproduction.Collector Feedback Loops
By tapping into social media, fan clubs, and Funko’s app, Josh could monitor which characters and lines are most anticipated, ensuring production aligns closely with actual demand.
The Fandom has also changed within the last few years as many diverse creators are arriving on the scene, showcasing brand new IP and characters, gaining massive amounts of views on social media. Josh could also tap into those markets as well:
Expanding Character Representation
Josh could prioritize Funko Pops that reflect a wider range of cultures, genders, sexual orientations, and abilities. By including characters from underrepresented groups in TV, movies, anime, and comics, Funko could appeal to more diverse fanbases and increase inclusivity in the collectibles market. Imagine an Iyanu or Invincible Fight Girl Funko.Collaborating with Diverse Creators and Licenses
Partnering with content creators, writers, and artists from diverse backgrounds can generate unique and authentic collectibles that resonate with fans. Limited-edition Pops tied to diverse storytelling can create hype and show Funko’s commitment to representation.Inclusive Marketing Campaigns
Josh could ensure Funko’s marketing campaigns feature diverse voices and fan communities, highlighting how the brand celebrates all kinds of fandoms. This could include social media spotlights, influencer partnerships, or events that highlight global and multicultural audiences.Community Engagement and Feedback
Josh could implement programs that actively listen to diverse fan communities, collecting feedback on what characters and franchises they want represented. This ensures the product line reflects real demand and fosters loyalty among historically underrepresented collectors.
Tariffs also create financial challenges for Funko, but Josh can reduce their impact by improving supply chain management by using regional manufacturing, working with a variety of suppliers, and planning products strategically, all while keeping collectors satisfied and prices steady.
Cost Management
Tariffs increase the cost of imported goods, which can eat into Funko’s profit margins or force higher retail prices. Josh could work to negotiate better shipping terms, or shift production strategically to countries with lower tariffs or trade agreements.Localized Manufacturing
He could explore partial domestic or regional manufacturing for high-demand lines. Producing closer to key markets can reduce import tariffs, shipping costs, and lead times while maintaining product availability.Pricing Strategies
Josh could implement tiered pricing or limited-edition runs to offset tariff-related cost increases without alienating collectors. Crowdfunding campaigns could also help gauge demand before producing high-cost items.Supplier Diversification
By expanding the network of manufacturing partners, Funko could reduce dependency on regions with high tariffs, giving the company flexibility to respond to global trade fluctuations.
Final Thoughts
Josh was tapped from Netflix for a reason. His track record of turning blockbuster shows into must-have merchandise, building e-commerce platforms, and creating immersive fan experiences gives him the tools to tackle Funko’s biggest financial challenges. From controlling overproduction and optimizing inventory to launching high-margin exclusives and expanding global markets, Josh has the experience to stabilize the Funko economy while keeping collectors excited. By combining data-driven production, strategic pre-orders, and fan-focused engagement, he could reduce waste, boost revenue, and even help address debt, all while maintaining the hype and loyalty that make Funko a keystone of the pop-culture universe.
The Funko economy is pop culture’s blood, flowing through fandoms, conventions, and collector communities. Without it, the heartbeat could slow and flatline, potentially turning the market into a possible pop culture recession. Admittedly, while some of the above business strategies have been implemented, one way or another, by previous Funko representatives, Josh Simon’s spin on these tools might be exactly what the collectible market needs to bring the magic of Funko and possibly pop culture back to life.
