Hasbro 2014 Annual Report Download - page 16

with investment and time. The Company’s franchise brands are LITTLEST PET SHOP, MAGIC: THE
GATHERING, MONOPOLY, MY LITTLE PONY, NERF, PLAY-DOH and TRANSFORMERS, while
challenger brands include BABY ALIVE, FURBY, FURREAL FRIENDS, KRE-O, PLAYSKOOL and
PLAYSKOOL HEROES. The Company’s gaming mega brands are CONNECT 4, ELEFUN & FRIENDS,
JENGA, THE GAME OF LIFE, OPERATION, SCRABBLE, TRIVIAL PURSUIT and TWISTER. Hasbro also
seeks to imagine, invent and ignite new or archived brands by offering engaging branded play experiences. In
addition to product offerings under Hasbro-owned brands or brands, which if not entirely owned, are broadly
controlled by the Company, offerings may also include products which are branded and developed under key
licenses from our partners. Significant partner brands include MARVEL characters, including SPIDER-MAN
and THE AVENGERS, STAR WARS, DISNEY DESCENDANTS, JURASSIC WORLD, and SESAME
STREET. Both MARVEL and STAR WARS are owned by The Walt Disney Company (“Disney”).
Our innovative product offerings encompass a broad variety of toys including boys’ action figures, vehicles
and playsets, girls’ toys, electronic toys, plush products, preschool toys and infant products, electronic interactive
products, creative play and toy-related specialty products. Games offerings include face to face, trading card and
digital game experiences played as board, off-the-board, digital, card, electronic, trading card and role-playing
games.
As part of our brand blueprint, we seek to build our brands through entertainment-based storytelling,
including television and movies, digital gaming and out-licensing. Hasbro Studios LLC (“Hasbro Studios”) is our
wholly-owned production studio, which is responsible for entertainment brand-driven storytelling across
mediums, including the development and global distribution of television programming primarily based on our
brands. This programming currently airs in markets throughout the world. Domestically, Hasbro Studios
primarily distributes programming to Hub Television Network, LLC, formerly known as Hub Network and, as of
October 13, 2014, now the Discovery Family Channel (the “Network”). The Network is a joint venture with
Discovery Communications, Inc. (“Discovery”) which operates a cable television network in the United States
dedicated to high-quality children’s and family entertainment and educational programming. Beginning in 2015,
Hasbro Studios will begin distributing certain programming domestically to other outlets, including Cartoon
Network. Internationally, Hasbro Studios distributes to various broadcasters and cable networks. Lastly, Hasbro
Studios distributes programming globally on various digital platforms, including Netflix and iTunes. During
2014, we formed Allspark Pictures, Hasbro’s film label, and anticipate producing both animated and live action
theatrical releases based on our brands. The Company’s storytelling initiatives support its strategy of growing its
brands well beyond traditional toys and games and providing entertainment experiences for consumers of all ages
accessible anytime in many forms and formats.
In July 2013, the Company acquired a 70% majority stake in Backflip Studios, LLC (“Backflip”), a mobile
game developer, based in Boulder, Colorado. The acquisition allows us to leverage Backflip’s existing and new
intellectual properties while extending our own brands through mobile digital gaming. Finally, we license certain
of our trademarks, characters and other property rights to third parties for use in connection with digital gaming,
consumer promotions, and for the sale of non-competing toys and games and lifestyle products, or in certain
situations, to utilize them for toy products where we consider the out-licensing of brands to be more effective.
As we seek to grow our business in entertainment, licensing and digital gaming, we will continue to evaluate
strategic alliances, acquisitions and investments, like Hasbro Studios, the Network and Backflip, which may
complement our current product offerings, allow us entry into an area which is adjacent or complementary to our
toy and game business, or allow us to further develop awareness of our brands and expand the ability of
consumers to experience our brands in different forms and formats.
Product Categories
Our brand blueprint focuses on reinforcing storylines associated with our brands through several outlets,
including television, motion pictures and digital media. Digital media encompasses digital gaming applications and
the creation of digital environments for analog products through the use of complementary digital applications and
websites which extend storylines and enhance play. While certain media-based entertainment benefit only one
particular product category, others, specifically major motion pictures, can impact more than one product category.
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