Toy Companies Mattel and Hasbro Take Diverging Paths in Hollywood
September 2018 marked a significant turning point for toy giants Mattel and Hasbro. Mattel’s CEO, Ynon Kreiz, announced the launch of a films division aimed at bringing their beloved toy franchises to the big screen. Not to be outdone, rival company Hasbro had even bolder ambitions – to become the next Marvel Studios and produce its own blockbuster films. In pursuit of this goal, Hasbro acquired producer Entertainment One for a staggering $3.8 billion in 2019.
However, the outcomes for both toy companies would be vastly different. Mattel’s Barbie film proved to be a massive success, surpassing the coveted $1 billion mark at the box office. This accomplishment solidified Mattel’s Hollywood presence and affirmed their decision to enter the film industry.
On the other hand, Hasbro’s aspirations to dominate the world of cinema fell short. After failing to achieve the same level of success as Marvel Studios, they were forced to reevaluate their strategy. As a result, they made the strategic decision to sell Entertainment One for $500 million. This move allowed them to shift their focus towards digital gaming and prioritize their core business – toys.
The diverging paths of these toy giants highlight their differing approaches and priorities. Mattel chose to double down on their Hollywood endeavors, renewing their licensing deal with Warner Bros. Discovery Global Consumer Products. They continue to develop and produce movies based on their beloved toy brands, confident in their Hollywood approach.
Mattel’s CEO, Ynon Kreiz, underscored the progress of their strategy and expressed his confidence in their Hollywood venture. The success of the Barbie film demonstrated the potential for toy franchises to captivate audiences beyond the playroom, and Mattel is eager to explore this further.
In contrast, Hasbro’s decision to sell Entertainment One to Lionsgate marked a strategic shift for the company. By refocusing on their toy businesses, they are doubling down on what they know best. Although their Hollywood aspirations did not pan out as expected, Hasbro remains a major player in the toy industry and will continue to innovate and captivate audiences in their own unique way.
As the toy industry evolves and adapts to changing consumer preferences, both Mattel and Hasbro have adjusted their strategies accordingly. Only time will tell which path proves to be more successful, but one thing is for certain – the world of toys and Hollywood will continue to intersect in fascinating ways.
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