Hasbro Readying Push in Licensed Experiences
Notes from Hasbro’s meeting with investors on the eve of New York Toy Fair:
- In making push into what it says is a $75 billion global business, Hasbro struck a series of agreements to create Nerf, My Little Pony and Transformers “experiences.” Exhibition company Kingsmen Creatives will open Nerf family centers in Asia starting with Singapore later this year, while Marriot adds My Little Pony- and Transformers-themed hotels in China. DMG Entertainment also is readying Transformers VR/AR “experience centers” that also will open in China.
- The new experience centers are part of the company’s broader effort to expand its outbound licensing program that currently includes 1,000 licensees and about $2 billion in annual retail sales. Among the major efforts will be continued expansion in apparel such as the venture last fall with designer Jeremy Scott’s Moschino label for My Little Pony women’s dresses and handbags. “These build a cachet for the brands and create a pop culture halo” that can “build equity through retail,” President John Frascotti said. Hasbro also has struck publishing deals for Micronauts and Rom the Space Knight comic books as it seeks to revive those brands. “Consumer products as part of our overall business will continue to grow across multiple categories and geographies,” Frascotti said.
- Hasbro is increasing emphasis on pre-school products this year, a category where it is “under-represented,” xx said. As part of that effort, Hasbro signed a licensing agreement with Viacom for “Top Wing”, a series that debuted last November in the U.S. with 26 episodes. Hasbro also is the master toy licensee for the original 10-episode Netflix series “Super Monsters,” which was co-produced by 41 Entertainment and Icon and launched last October. It’s built around the pre-school children of famous monsters such as Dracula and Frankenstein. A second season of Super Monsters is due this fall.
- Hasbro will continue sharpening its focus on its “franchise” brands – Transformers, My Little Pony, Nerf and others – while licensed brands become a slightly smaller part of its business this year. Licensed brands accounted for 24% of its revenue in 2017, CEO Brian Goldner said. Despite the drop, Hasbro’s royalty costs are expected to remain flat with a year ago at 7.8% of revenue, Goldner said.