Hasbro 2011 Annual Report Download - page 4

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(massively multiplayer online) games to players in
both Western markets and China, respectively. In
2012, we have several global gaming initiatives
based on Hasbro brands, including MONOPOLY,
TRANSFORMERS and BATTLESHIP.
We also know the marriage between the digital
and the analog gaming world works both ways.
In support of this, we recently entered into an
exclusive, worldwide strategic alliance with Zynga,
the world’s leading social game developer with
more than 240 million average monthly active users
in over 175 countries. Through this agreement,
Hasbro has obtained the license to develop and
distribute wide-ranging product lines based on
Zynga’s game brands, including FARMVILLE,
CITYVILLE, and WORDS WITH FRIENDS, in a
number of toy and game categories. This deal also
creates opportunities for co-branded merchandise
featuring a combination of both Hasbro and Zynga
brands. The fi rst products under this long-term
agreement are planned for Fall 2012.
Finally, to make all this happen, we have a new
Hasbro gaming team, with a lot of talent from
outside the traditional board game arena. We have
invested in this team, establishing the new Gaming
Center of Excellence in Rhode Island, and they are
re-imagining our brands, creating new technologies
and inventing new brands. We continue to believe
that, through a combination of face-to-face, o -the-
board and digital gaming, there is an opportunity
to grow our gaming business in 2013 and beyond.
We have a solid foundation upon which to build, as
Hasbro had eight of the top ten game brands in the
U.S. last year.
Developing New Immersive Experiences
The development of digital gaming experiences is
one element of the multi-dimensional immersive
experiences we are creating for Hasbro consumers
and the brands they love. Today, in addition to our
digital gaming experiences, global consumers can
experience our brands in movies, in television and
through licensing and publishing.
In feature fi lms, we currently work with four
major studio partners: Paramount, Relativity,
Sony and Universal, which provides us access to
amazing talent and tremendous resources. In 2012,
two fi lms based on Hasbro brands are scheduled
for global release. First, in partnership with
Universal, Battleship is scheduled to debut in April
internationally and in May in the U.S.; and together
with Paramount, G.I. Joe: Retaliation, will hit theatres
in June. Potential future fi lms based on other
Hasbro brands are under development, including
OUIJA, the fourth TRANSFORMERS fi lm, STRETCH
ARMSTRONG, CANDY LAND, RISK, MONOPOLY
and CLUE.
Turning to television, our global initiatives
are making real progress with Hasbro Studios
programming now airing globally in over 140
countries this year. International performance so
far has been very good, with Hasbro Studios shows
consistently delivering top ratings among our key
demographics. By the end of 2012, we plan to
have produced almost 600 half-hours of original
programming and, because we know that kids
love to watch television in all forms and formats,
we’re distributing these shows everywhere kids are
consuming content - television, online, DVDs, tablets
and mobile applications.
In the U.S., distribution is primarily on THE
HUB, where we are one year into the launch of the
all-new HUB television network and the ratings
trends continue to be positive. The fourth quarter
of 2011 was the fi rst quarter we had year-over-year
comparisons for THE HUB, and during the quarter
THE HUB posted 31% gains in total day against Kids
2 to 11. The network posted growth throughout 2011
and Hasbro Studios programming accounted for fi ve
of the top ten series for the year.
As we further develop our licensing and
publishing teams, it is important to recognize that
our e orts traditionally have been focused in the
U.S. To further develop our global capabilities,
we added new licensing personnel into markets
globally, including China, Russia, Poland and Mexico
to bring to bear our full licensing potential in all
our geographies. We are focused on signifi cant
and growing licensed categories around the world,
including apparel, home and publishing.
annual report 2011