Wednesday, June 18, 2014


From yesterday's New York Times:

... Last year, 71 percent of DreamWorks Animation’s revenue came from new films, according to Anthony Wible, an analyst at Janney Montgomery Scott. Next year, he expects it to be closer to 48 percent, [with] an aggressive move into consumer products. ...

... DreamWorks Animation’s merchandising onrush comes as Hollywood’s unsexy consumer products business starts to attract more investor attention. “Disney Consumer Products: World’s Most Valuable Afterthought?” read the headline of a March report from Todd Juenger, a Bernstein Research analyst. Mr. Juenger estimated that merchandise would be Disney’s fastest-growing unit through 2018, in part because of [Disney merchandising chief] Bob Chapek’s strategies. ...

Amazing how neatly this ties in with yesterday's merchandising story regarding the Mouse. Disney is reaping billions stacked on billions from its consumer products. DreamWorks Animation strives to do the same.

For DWA, of course, branching out is a necessity, since relying on one hit film after another isn't a sustainable business model.


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