Hasbro 2015 Annual Report Download - page 14

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 October 2015, Allspark Pictures released
JEM AND THE HOLOGRAMS. In October 2016, Allspark Pictures expects to release OUIJA 2.
In addition to film and television initiatives, Hasbro understands the importance of digital media and
digitally integrating our products. 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. We own a 70% majority stake in Backflip Studios, LLC (“Backflip”),
a mobile game developer. While certain of our trademarks, characters and other property rights are licensed by
third parties in connection with digital gaming, we anticipate leveraging and applying Backflip’s digital gaming
expertise to Hasbro brands in 2016 and beyond.
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
We market our brands under the following primary product categories: (1) boys; (2) games; (3) girls; and
(4) preschool toys.
Boys Franchise Brands in our boys’ category include the NERF action sports products and
TRANSFORMERS action figures and accessories. The TRANSFORMERS brand, which has been supported by
the four major, successful theatrical releases over the past decade in combination with animated television
program developed by Hasbro Studios, TRANSFORMERS: ROBOTS IN DISGUISE, has become a hallmark
example of how successful our brand blueprint can be when properly executed across all mediums.In addition to
these Franchise Brands, the boys’ category also includes SUPER SOAKER water blasters and G.I. JOE action
figures and accessories. Another significant portion of our boys’ category includes licensed product lines based
on popular movie, television and comic book characters, such as MARVEL and STAR WARS. In 2015, overall
results from the boys category benefited from significant product sales related to three major motion picture
releases: AVENGERS: AGE OF ULTRON, STAR WARS: THE FORCE AWAKENS and JURASSIC WORLD. In
addition to marketing and developing traditional action figures and accessories for these entertainment brands,
the Company also develops and markets products designed for collectors, which has been a key component of the
success of the TRANSFORMERS, STAR WARS and MARVEL brands.
Games Over the years, we have established a diverse portfolio of well-known games brands through
innovation, invention and acquisition. Our Franchise Brands, MAGIC: THE GATHERING and MONOPOLY,
headline our portfolio and are accompanied by our mega gaming brands, including CONNECT 4, ELEFUN &
FRIENDS, GAME OF LIFE, JENGA, OPERATION, SCRABBLE, TRIVIAL PURSUIT and TWISTER. To
successfully execute our gaming strategy, we consider brands which may capitalize on existing trends while
evolving our approach to gaming using consumer insights and offering gaming experiences relevant to consumer
demand for face-to-face, board, off-the-board, digital, card, electronic, trading card, role playing and other game
play including the launch of new play patterns. In the fourth quarter of 2015, net revenues from the games
category benefited from the introduction of PIE FACE.
Girls Our girls’ category not only includes traditional girls’ toys but also provides a variety of contemporary
and engaging play experiences. Girls’ Franchise Brands include LITTLEST PET SHOP, MY LITTLE PONY,
NERF REBELLE and PLAY-DOH DOH VINCI while Girls’ Challenger Brands include BABY ALIVE,
FURBY and FURREAL FRIENDS. Franchise Brands LITTLEST PET SHOP and MY LITTLE PONY are each
supported by animated television programming developed by Hasbro Studios. In addition to Hasbro Franchise
and Challenger Brands, we also have licenses to develop certain product lines based on popular television and
film brands, including DISNEY’S DESCENDANTS, DISNEY PRINCESS, FROZEN and TROLLS. Our
DISNEY PRINCESS and FROZEN product lines were introduced at retail in January 2016. Lastly, Hasbro
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