How Hasbro's Transformers Transformed the Toy Biz
T.L. Stanley
Brandweek
February 10, 2008
Ready for Magic 8 Ball: The Movie?
It’s in the works (or, all signs point to yes), showing
that the toy business isn’t just about playthings
anymore.
Mattel, home to the iconic Magic 8 Ball, Hot Wheels,
Barbie, Uno and other mega-properties, recently signed
with Hollywood’s most powerful talent firm, Creative
Artists Agency, to develop its brands into movies, TV,
Webisodes and other media.
The move follows a flood of interest from major
entertainment companies in turning toys into content, on
the heels of the $700 million grossing Transformers, a
Hasbro-owned franchise that spawned the third
best-performing movie of ‘07. (Hasbro, not so
incidentally, also has high-powered representation in
the form of William Morris Agency, though CAA helped the
toy maker get Transformers off the ground.)
“There’s a lot of power in content,” said Barry Waldo,
vp-worldwide entertainment marketing and strategy at
Mattel, which had set up the 8 Ball project with
Universal and producer Tom Shadyac on its own. “But we
won’t be making big toy commercials.”
Expanding a brand and staying relevant will be among the
hot topics at Toy Fair ’08, kicking off Feb. 17 and
continuing through Feb. 20 in New York. The show is
expected to draw some 1,200 exhibitors showing as many
as 7,000 new products and, for the first time, will
include an “Inventor Center” where the next Furby might
be percolating.
The annual trade show comes at a tough time for the
industry. Last summer’s recalls and the lack of
must-have toys stalled the business during the key
holiday time, when some retailers rake in half their
annual revenue. Essentially, traditional toys have been
hovering around $20 billion in sales for the past five
years, while videogames are skyrocketing, increasing 40%
last year compared to ’06, with a record $18.8 billion
in sales.
Some analysts expect recovery this year, but point out
that more money devoted to tighter safety standards,
more testing and bureaucracy means cash diverted from
marketing. That could impact the bottom line.
Those not caught up in recall mania saw an immediate
boost in their business at holiday and likely will
continue to drive home that made-in-the-USA. message.
Lego competitor K’Nex saw a 20% increase in its sales in
December, compared to the prior year, with a
locally-made focus that will continue to be its mantra.
Aside from issues, a few products may stand out amid the
cacophony. Cat Schwartz, eBay gadget and toy director
and founder of HiTechMommy.com, picks the portable
microscope called EyeClops from Jakks Pacific, which
already has been a top toy in its initial run but this
year becomes wireless and adds an LCD screen. That means
kids can take it outdoors, make movies out of their
findings with its built-in digital camera and upload
them onto a computer. “I think the companies that are
taking adult-level products and scaling them down for
kids are very smart,” Schwartz said. “EyeClops is not
aggressive, it’s not mind-numbing. You’re learning
something.”
She also expects to see a lot of Webkinz wannabes,
remote control creatures with more innovations, and
green themes all around, whether in toys themselves,
packaging or both.
Green with a splash of edutainment, Discovery Kids is
wiping the slate clean from the boutique days when it
was sold at its namesake stores and becoming a mass
market product line with night goggles, microscopes and
other nature and science-based gadgets.
“It has built-in awareness and the halo of the Discovery
Channel,” said Rich Maryanek of Big Tent, a licensing
agency that worked with Discovery and Jakks Pacific on
creating the products. “The toys did $200 million in
volume at the Discovery Stores, and we thought it was a
good time to re-imagine it for mass.”