Hasbro 2011 Annual Report Download - page 13

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marketplace insights and leveraging opportunistic toy and game lines and licenses. This strategy leverages off of
efforts to increase consumer awareness of the Company’s core brands through entertainment experiences such as
motion pictures, television, publishing and digital gaming. Major 2011 brands and products included
BEYBLADE products, TRANSFORMERS, NERF, MAGIC: THE GATHERING, MARVEL products, STAR
WARS products, FURREAL FRIENDS, SESAME STREET products, LITTLEST PET SHOP and
PLAYSKOOL.
International
The International segment engages in the marketing and sale of our product categories to retailers and
wholesalers in most countries in Europe, Asia Pacific and Latin and South America and through distributors in
those countries where we have no direct presence. In addition to growing core brands and leveraging
opportunistic toy lines and licenses, we seek to grow our international business by continuing to expand into
Eastern Europe and emerging markets in Asia and Latin and South America. We have offices in more than 35
countries contributing to sales in more than 120 countries. In recent years, we expanded our operations by
opening offices in Brazil, Peru, Colombia, China, Russia, the Czech Republic, Romania and Korea. We plan to
continue to expand operations in emerging markets in future years through continued investment. Key
international brands for 2011 included BEYBLADE products, TRANSFORMERS, NERF, LITTLEST PET
SHOP, PLAY-DOH, FURREAL FRIENDS, PLAYSKOOL, MONOPOLY, STAR WARS products and
MAGIC: THE GATHERING.
Entertainment and Licensing
Our Entertainment and Licensing segment includes our lifestyle licensing, digital gaming, movie, television
and online entertainment operations. Our lifestyle licensing category seeks to promote our brands through the
out-licensing of our intellectual properties to third parties for promotional and merchandising uses in businesses
which do not compete directly with our own product offerings, such as apparel, publishing, home goods and
electronics.
Our digital gaming category seeks to promote our brands through the out-licensing of our intellectual
properties in the digital area, such as for applications on mobile phones, personal computers, and video game
consoles. This is primarily done through our long-term strategic partnership with EA, which provides EA with
the exclusive worldwide rights to create digital games for all of these major platforms based on most of our toy
and game intellectual properties. In digital gaming, we also have strategic partnerships with Activision, Majesco,
Net Dragon, Jagex and Perfect World to develop digital games and applications for 2012 and beyond.
To support our strategic objective of further developing our brands through television entertainment, we
established a wholly-owned television studio, Hasbro Studios, which produces television programming primarily
based on our brands as well as third-party branded content, which is distributed on a global basis. In addition,
Hasbro Studios has a coordinated development process which aligns with our 50% interest in a joint venture with
Discovery that operates a television network in the United States, THE HUB, which debuted in October 2010.
THE HUB is dedicated to providing high-quality children’s and family entertainment and educational
programming.
In addition to the above, we also seek to promote and leverage our brands through major motion pictures. In
2009, TRANSFORMERS: REVENGE OF THE FALLEN and G.I. JOE: THE RISE OF COBRA were released
based on our brands. In July 2011, TRANSFORMERS: DARK OF THE MOON, the third major motion picture
based on the TRANSFORMERS brand, was released. The next motion pictures based on the Company’s
properties include BATTLESHIP, which is scheduled to be released in 2012 by Universal Pictures, and G.I. JOE:
RETALIATION, which is scheduled to be released in 2012 by Paramount Pictures. The Company has motion
picture projects based on other brands in development for potential release in future years.
Major motion pictures and television programming based on our own and controlled brands provide our
consumers with the ability to experience these properties in a different format, which we believe can result in
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