TFW2005 attended the Hasbro Third Quarter 2014 Earnings Conference Call live today.
The last financial quarter was very eventful for Hasbro. Not only the Hasbro-Discovery Hub Network was rebranded, the next Transformers Animated Series; Transformers: Robots In Disguise went to the Cartoon Network. Hasbro also appointed a new Brand President; Mr. John Frascotti. So, we joined the call unsure of what we might hear this time. Will it be good, bad or the usual? But we did not knew, that we were in for a treat as Hasbro made some important statements regarding the future of some of our beloved brands, including Transformers.
More than a year ago, TFW2005 revealed for the first time, a curious new Hasbro Trademark at the United States Patent & Trademark Office. The trademark is called AllSpark Pictures and it was only today that Hasbro revealed what it is. AllSpark Pictures is a new initiative by Hasbro where the Toy Company will produce Movies. Hasbro Studios will continue to provide content for the Television while AllSpark Pictures will cater the Live Action/Animated Movies.
The call contained:
- The success of Transformers: Age Of Extinction
- Transformers 5 Announced
- AllSpark Pictures
- Transformers: Robots In Disguise
- Why Transformers Titan Heroes Exist
You can find more information, after the jump. Hasbro CEO Brian Goldner:
Transformers: Age of Extinction delivered over 1 billion dollars at the global box office. This result, coupled with an innovative new line, drove strong year-over-year revenue gains in TRANSFORMERS. Through the first nine months of the year, TRANSFORMERS revenues are greater in international markets than in the U.S. and Canada segment, reflecting the mix of box office results and the global expansion of Hasbro. Overall, the brand is performing in line with the last movie year and we are well into development for the next installments of TRANSFORMERS content. This includes new television programming, as well as collaborating with the film makers on our next ideas to re-invent and re-imagine the TRANSFORMERS brand in movies.
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This new relationship is a terrific complement to the prolific boys’ entertainment slate over the next several years, including film and television entertainment from Marvel and Lucasfilm, as well as the next theatrical installments of Hasbro’ s brands, G.I. JOE and TRANSFORMERS.
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In the first quarter 2015, we are launching the next installment of TRANSFORMERS television programming, Transformers: Robots in Disguise. The all new show will debut on Cartoon Network in the U.S., the top-rated primetime network for boys’ ages 6-11 and 9-14. Hasbro has developed tremendous expertise in producing animation. We are working with the world’s best studios and we know how to produce top quality animation cost effectively. As our content strategy and all-screen strategy evolve, we are building upon our experience in animation and storytelling. In addition to television, there are select films where we are taking greater control of the process. We have two movies we are currently developing under our new film label, Allspark Pictures. These films are MY LITTLE PONY and JEM AND THE HOLOGRAMS.
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We envision Allspark Pictures as a new way to make fresh and compelling movies, based on new and existing Hasbro brands, for audiences globally.
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Deb Thomas, Hasbro CFO:
Entertainment and Licensing segment revenues grew 10%, fueled primarily by lifestyle licensing revenues for Hasbro Franchise Brands, including MY LITTLE PONY and TRANSFORMERS.
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Cost of sales as a percentage of revenue in the quarter declined. This decline continues to reflect growth in entertainment properties, including TRANSFORMERS and MARVEL properties, as well as higher Entertainment and Licensing revenues.
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Q&A Session:During the Q&A Session, Mr. Goldner mentioned that AllSpark Pictures was formed in order to increase the focus and effort towards Live Action Movies.
Mr. Goldner also mentioned that Rescue Bots will continue on the newly rebranded Discovery Family.
A question was asked about the success of AOE. The CEO mentioned that he is happy with the growing emerging market for Transformers. He mentioned that they will continue to cater the success of the Chinese market. The second question targeted the International vs. US success of Age Of Extinction. Brian Goldner felt ok with the results, judging by his response.
CEO also explained why Titan Heroes line exists (it was as if he knew the Fan question). He mentioned that the line is mostly targeted at emerging markets due to their low prices.
nobleboivin
This thread
OP84
The people complaining about Hasbro "pandering" to the Chinese with AOE seem to forget how many Asian exclusive TF's have been released as of late which haven't made their way over here AT ALL.
General Magnus
The way some posters behave one could think that.
Autobot Burnout
Given it sounds like AllSpark Pictures is focusing on the Live Action sector, I wouldn't put too much expectation for that to happen.
Ironhide1234
My little pony movie?
Don't overwhelm me with excitement.
down_shift
I really hope this Allspark Pictures business can give adult collectors something akin to what DC has done with their animated movies like Assault on Arkham, JL War, Flashpoint Paradox and so on.
TheSoundwave
Sorry everyone for being such a jerk on here yesterday, I guess I kinda took it out on Hasbro and you guys because I was annoyed.
JohnRedcorn
The US economy is in the tank. We have no money to spend and China owns are debt. Of course it makes sense to "pander" to China where there is a greater consumer audience.
Boulder
Everyone point to the kid who didn't get Jazz!
eagc7
ditto
…………………..WHEN AOE WAVE 2 IS COMING HERE
Hollywood Hoist
Given you grew up with very simple Transformers (i.e. G1) you have zero idea of what it's like to be a seven year old trying to transform something with 15-30 steps just to play with it. Remember these are action figures, where is the "action" in a puzzle.
Collectors and adult fans have Masterpiece and Classisc/Generations, but apparently that is not enough for you, you want all Transformers to be for adults, but what happens when the number of fans drop off and there isn't enough of new fans to sustain the line? Then we have what we did in the early 90's which was Transformers almost completely disappearing.
Also there are many collectors/fans who have purchased the one step changers and are perfectly happy with them so when you make these statements you realize you do not speak for the Transformers fandom you only speak for yourself.
OMEGAPRIME1983
I'm talking Direct to DVD movies, not taking the movie franchise away from Paramount. Maybe things that could even add to Paramount's Movie-verse. they COULD even finally continue/remake the G1 series. Give the older fans who are, no offence meant, to rigid to accept that the movies (or anything else) exist. Hell, they could make a new full on universe all it's own this way. The possibilities with their creating a new production branch are endless for all of their brands.
Boy Blunder
And yet, here you are, caring about them.
Seriously, though, why are you hung up on the lines that aren't aimed at collectors? We've got Generations, which is not only amping up for a large 'themed' line this year, but is also giving us at least three Leader-class figures. Hasbro is just hitting as many demographics as it can, and what's wrong with that?
Sonic Warfare
This. I may not like the live action movies, but I am so thankful for them, for this reason. I don't like a solid 80% of the movie or simple toys, but kids do, and that revenue and increased interest in the brand let us have things like the Classics and MP lines.
optimusmegas
well no shit…..those things are aimed at kids not collectors. younger kids just being introduced to the brand. collectors have generations, masterpiece, and third party kids have titans, one steps, and whatever other gimmicky toys are out there.
that's the problem you collectors think it should all be about you and you forget it's also a toy line aimed at kids.
RKillian
It's not the simplicity, it's the ugliness of the sculpts. I love the GoBots toys, most of which are relatively simple. The difference is that they're not oversculpted and chintzy looking.
Boulder
I think they're trying to follow the Marvel Studios template by looking at the big picture. So far, all the Transformers sequels have been written as sort of picking up where the previous ones left off. Actually, following the success of Avengers and Guardians of the Galaxy, I think every production studio (down to the smallest indie documentary maker) is trying to emulate Marvel studios.
ETA: Skimming through this thread, it seems that some people have a misunderstanding of how "studios" work. Most studios aren't like the Paramount, Warner Bros, or Universal lots you see on television or in the movies. Studios may hire directors, production crews and contract post production to effects companies on a picture by picture basis but they're not going to go out and hiring their own gaffers, cameramen, etc. In fact, some "studios" don't do this at all and exist only to only license products. (Marvel started out as one of those "studios" with a small office in Hollywood.)
Matt_M
Last I checked, the classics line isn't cancelled.
You should be happy – simple figures draw in younger fans, who get attached to the brand, and will eventually be collectors themselves. Transformers is a diverse brand; not everything needs to be aimed at "us collectors."
Yobuster
Just finished reading the many pages of this thread and ……. well it was entertaining. I actually had more to say but i think everyone else covered it already.
As for Allspark Pictures, interesting name but not sure how Hasbro is going to tackle that exactly. I mean making toys and building a brand is one thing but film making is entirely different. But i do have bigger hopes for their other lesser known brands like Visionaries for example.
Afterburner
Sounds like what is next for TransFormers films might not be a direct continuation which could be good news. Though I'm not sure getting more involved is the right approach – whenever they got more involved in the past, it was never good. Leave movie making to quality people who know how to do it. Of course, they need to be in search for those people as we speak since they've never bothered to hire any outside of ILM.
It seems US TF performance is still lagging, as is easily observable online and in the toy aisle. Much like the box office. I wonder what happens when Chinese kids lose interest? They better hope it doesn't happen anytime soon, especially if they are going to be selling out there. Dangerous strategy because that market is not yet well defined and will soon stagnate. Hard to predict the future there. It should be noted performing in line with DOTM still means a significant dropoff from the success the first two movies had – in other words, ROTF had a major negative effect and DOTM did not reverse the trend.
Also, much as I suspected they are riding higher profits off of raising prices while cutting costs. The quality of the product has suffered though, and usually a strategy as such is not a viable long term strategy because you set negative trends against your own brand.