Here we are with TFW2005 Coverage of Hasbro 2012 3rd Quarter Earnings Conference Call.
Unfortunately, no major future plans were told about our beloved franchise, unlike last time. The reason for this may have been NYCC 2012 where Hasbro revealed much of their 2013 plans. Profits are down 4% last quarter and Hasbro wishes to return the “U.S. & Canada segment” to historical operating profit margins in the coming year. You can read all about this thanks to the Press Release our 2005 Boards member Hot Shot sharing with us.
However, there are things not written in black and white… things that may not look that big nor create a heavy impact. However, these little things matter to us; The Fans. What was said at the call might potentially impact the current Transformers Animation Series; Transformers: Prime. What is it? Find out, after the jump. At one point during the Conference Call it was casually told that Production Costs will get cut for Hasbro Hub related TV Shows. Later during the Q&A session a reporter asked Hasbro’s CEO Brian Goldner what was meant by that. The answer suggests a possible reason why we are getting only 13 Episodes for Season 3 of Transformers: Prime.
Question: Final Question… If you could just elaborate. You touched a bit on a prepared remark that I’m interested. You said you are reducing your production spend over the past several quarters… said due to efficiencies. Can you just elaborate more on that?
Answer: “Actually what we are saying is amortization has come down because ultimate revenue expectations have gone up. It’s one big driver on that. As we look at our ultimate revenue expectations for out programming because our performance we have on the television and digital distribution performance and revenue we are now expected to get from that programming; cross merchandising and program sales the amortization comes down.”
Question: You’ve been reducing your program production cash..
Answer: “Yeah, yeah the cash spend you really have to do when you have a successful TV Series… In fact Hasbro Studios TV Shows has outperformed other TV Shows on the Hub by 74% rating with 4 of the Top 10 shows on the network right now. So as you look at great performance of TV Shows, you are able to produce fewer episodes in subsequent series than you need for earlier series. You know, kids love watching episodes over and over again but you have to add an element of newness but you don’t need to spend to produce entire new series again. You can add 13 episodes or a 26 episodes to a pool of 52 already produced Episodes. So therefore you are able to… with a success TV Series… produce fewer in a year. Overall, Hasbro Studios has greenlit over 800 half-hours of programming. We also still have several hundreds of half-hour programming that we are producing for the network and also looking at whether there are successful tv series we obviously then spend less per new series because we are able to produce newer shows.”
… and there you have it folks. This suggests a possible reason why Transformers: Prime Season 3 is only 13 or 16 Episodes.
What do you think of this decision? Are you with it or against it? Do you think that having 52 episodes already for the show might also be a factor? Let us know what you think, on the thread associated with this news post.