Iconic toy brand Mattel has been struggling to meet sales goals over the last few years, and now that Toys ‘R’ Us is out of business, the company will continue to struggle to have good sales on the toy division.
Mattel has plenty of iconic toy brands like Hot Wheels and Barbie, so the company has decided to begin to monetize those brands in ways that will help their bottom line.
Mattel is launching a new film division to help create content surrounding their iconic brands, much like Hasbro has done with the Lego brand.
Mattel has hired Robbie Brenner, the producer of major award-winning films like Dallas Buyers Club, as the film division’s lead. Brenner is not only a producer but former President of Relativity Media, a production company that has seen some success.
Brenner will oversee the day to day operations of the film division, including the creation of partnerships with studios and producers to develop films under the Mattel banner.
Commentary: For this to work for Mattel, they will need do a good job in licensing their brands to producers. Mattel needs to have major blockbuster hits to be able to turn this into a money winner for them.
Mattel isn’t focusing on creating a new film studio, which is smart for them. The less they take on in production costs, the better. In fact, they need to work on finding the right partnerships to develop the properties.
Good movies will lead to an uptick in toy sales.