Mattel’s Hollywood ambitions go beyond just a “Barbie” movie.
Toy maker Mattel (MAT) has changed its strategy to focus more on entertainment — right on the heels of the massive box office success of “Barbie.”
Latest example: The company announced earlier this week that Michelle Mendlowitz, who previously worked at Disney 20th Television Studios, Apple TV+, Sony Pictures Television and CBS Television Network, has been named president of Mattel Television Studios.
“We are excited to have her on board at a time of such momentum for the company, and for the important role she will play in developing stories that resonate with culture and growing Mattel’s global fan base,” Mattel CEO Ynon Kreiz said in a press release. .
Mattel Television Studios, the company’s television production and distribution division, has premiered 12 animated series, live-action shows and specials so far this year based on toy brands such as Barbie, Thomas & Friends, Hot Wheels, Barney and more.
The move demonstrates Mattel’s focus on creating diverse consumer touchpoints to increase brand awareness – particularly by leveraging its intellectual property (IP) to produce content.
The movie “Barbie,” which relied on an intense marketing campaign to build anticipation ahead of its release in July, was a prime example of this effort. This was Mattel’s first major theatrical release after the company created its in-house film division, Mattel Films, in 2018.
The film, distributed by Warner Bros. (WBD), broke box office records and earned more than $1 billion in global ticket sales to become the highest-grossing film of 2023.
“This film is really a showcase of the cultural significance of our brands,” Kriz previously told Yahoo Finance Live. “It speaks to the potential of Mattel movies and the significant progress we have made in our strategy to capture the full value of our intellectual property.”
In Kriz’s view, the film represents a “defining moment” in strengthening Mattel’s strategy with at least 14 other films based on the intellectual property currently in production, including Lena Dunham’s “Polly Pocket” and the “Barney” film produced by Daniel Kaluuya. . The movie “Hot Wheels” will also be shown in theaters.
“Bigger than the gaming industry”
Following last month’s third-quarter earnings results, Kriz told Yahoo Finance that the possibilities are endless when it comes to the future of Barbie, along with her other brands.
“It’s not just about Barbie. It’s about the entire universe around Barbie,” he said. “The opportunity is for us to continue to scale this across the content of the gaming pipeline, including not just film, but also television, attractions, live events, consumer products, digital experiences and other verticals that are in some cases larger than the gaming industry.” – All driven With great privileges.”
He stressed, “This is what we are putting on the table.” “It’s not just Barbie. It’s all of our other products.”
Kriz has led a multi-year turnaround plan at Mattel since taking over as CEO in 2018. At the time, the company was suffering from sluggish toy sales as more children turned to electronic devices instead of traditional toys.
In an attempt to reverse this trend, he redoubled his efforts in expanding the company’s brands into other profitable areas – such as films, video games and consumer products. The goal was to make Mattel toys “cool” again.
This is a strategy that has been successful with its competitor Hasbro (HAS), which achieved great success with its “Transformers” films, along with television shows such as “My Little Pony” in the early 2000s.
It also makes sense given Kriz’s background. He served as CEO and Chairman of Maker Studios, which was sold to Disney in 2014 for $500 million. Before that, he was Chairman and CEO of Netherlands-based media and production company Endemol Group.
However, it’s a risky bet considering Hasbro’s theatrical ambitions to create a Marvel-like universe have quietly ended as the hype around its franchises has subsided. Additionally, the theatrical box office still has not rebounded to pre-pandemic levels (and may never do).
But the results speak for themselves, with Mattel reporting a 9% rise in net sales last quarter, driven by higher billings for dolls and toy vehicles, which jumped 27% and 18%, respectively.
Kriz credited this rise to Barbie’s success and her continued interest in Hot Wheels toys.
Mattel stock is up about 5% year to date but is up about 10% on the year. Since the Craze acquisition, the stock has risen more than 40%.
Alexandra Canal He is a senior reporter at Yahoo Finance. Follow her on Twitter @allie_canal, linkedin, And email it to alexandra.canal@yahoofinance.com.
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