"Toy giants hoping to make magic with Harry Potter"
by Steve James (Reuters, February 11, 2000)
NEW YORK, Feb 11 (Reuters) - They're just wild about Harry! Harry Potter, that is.
Rival toy giants Hasbro Inc. and Mattel Inc. , were both hoping Friday to make money from the hugely successful Harry Potter children's books, which have sold over 18 million in the United States alone.
Time Warner Inc.'s Warner Bros. Worldwide Consumer Products unit, which owns the licensing rights to British author J.K. Rowling's books about a boy wizard, signed a deal with Hasbro to market Harry Potter trading cards and trading card games, role playing games, candy and electronics.
Mattel, home of Barbie dolls and Hot Wheels, signed a similar licensing deal to sell other Harry Potter items such as figures and board games.
Terms of neither deal were revealed.
Warner Bros. meanwhile is hoping to bring the adventures of the boy with the magical touch to the big screen next year. Director Steven Spielberg, who has made films for children such as "E.T." and "Hook" -- his version of the Peter Pan story -- is reported to be considering adapting "Harry Potter and the Sorcerer's Stone."
The announcement of Harry Potter tie-in deals came as the Toy Manufacturers of America trade group said toys based on licensed properties -- a key profit generator for show business -- have posted impressive growth in recent years. Their share of the overall toy market climbed to 46 percent in 1999 from 35 percent in 1996, the group said at the New York Toy Fair.
Such is Warner Bros.' confidence it can reap profits translating the success of the books into film and toys that its lawyers have been warning dozens of unofficial "Harry Potter" websites recently against unlawful use of the name.
"The challenge is...how they'll keep the excitement going until the first movie comes out," toy industry consultant Chris Byrne told the New York Daily News.
The Hasbro and Mattel products are expected to be available later this year initially only in Warner Bros. studio stores. They should be in other stores by the Christmas season and Warner hopes that will build demand for the movie, tentatively due in May 2001.
"Our intent is to judiciously roll out the product and not flood the market," Dan Romanelli, Warner Bros. Worldwide Consumer Products president, said in a statement. "We're looking to support the literary and film property as a long-term franchise.
"Strategies and timing will be determined on a market-by-market basis. In the U.S. and U.K., the product launch will be concurrent."
For Mattel, the world's largest toy maker, the Harry Potter deal could be a godsend. It has been struggling to climb out of a slump after its $3.5 billion acquisition last year of the software developer Learning Co. And last week, the company's chairwoman and chief executive Jill Barad resigned after Mattel posted an $18.4 million loss for its latest quarter.
The company's share price took a dive in September and has been hovering near its 52-week low of $10. It was up 9/16 at midday Friday at 10-13/16. Hasbro shares were up on the New York Stock Exchange at 15-3/16 after closing at 15 on Thursday.
"The millions of Harry Potter fans around the world are going to love seeing literary references to things like cards and candy come alive through our exciting range of offerings," said Alan Hassenfeld, Hasbro's chairman and CEO. "We are thrilled that Warner Bros. Worldwide Consumer Products has selected Hasbro to bring the magic into new and exciting worlds."
"All of Mattel is inspired by J.K. Rowling's rich, magical world of Harry Potter and we're thrilled about the relationship," said Adrienne Fontanella, president of Mattel's Girls Products division.
"We are dedicated to ensuring that everything we create, from dolls and games to high-tech toys, will bring the characters to life in amazing new ways."
Warner Bros. Pictures signed with Rowling last year a deal that gave the company exclusive licensing and merchandising rights. The deal includes development of two films based on the first two books -- "Harry Potter and the Sorcerer's Stone" and "Harry Potter and the Chamber of Secrets."
"Hasbro wins some Harry Potter licensing rights"
(Reuters, February 11, 2000)
NEW YORK, Feb 11 (Reuters) - Hasbro Inc. said on Friday it won the licensing rights to make a range of products based on the Harry Potter children's book series, including trading card games, role playing games, trading cards, candy and electronics.
It was granted the rights by Time Warner Inc.'s Warner Bros. Worldwide Consumer Products unit, which gained all worldwide licensing and merchandising rights to the extremely popular Potter series, by author J.K. Rowling.
On Thursday Warner Bros. licensed Mattel Inc. , the world's largest toy maker, to make toys based on the series.
Hasbro's worldwide licensing agreement involves the first two books, "Harry Potter and the Sorcerer's Stone" and "Harry Potter and the Chamber of Secrets," and upcoming films based on the series.
Hasbro shares closed at 15 Thursday on the New York Stock Exchange.
"Mattel to license Harry Potter for toys"
(Reuters, February 11, 2000)
BURBANK, California, Feb 11 (Reuters) - Mattel Inc. , the world's largest toy maker, is hoping the wizardry of the wildly popular Harry Potter book series may cast a little magic and lift Barbie out of the blues.
On Thursday, Time Warner Inc.'s Warner Bros. Worldwide Consumer Products said it had signed a much sought after licensing agreement for Harry Potter with Mattel, and made the company the world-wide toy licensee for the literary characters as well as for the upcoming feature films from Warner Bros. Pictures.
Terms of the deal were not disclosed.
J.K. Rowling's Harry Potter books have been published in 115 countries and in 28 languages with more than 18.4 million books bought in the United States alone. They have topped U.S. national best-seller lists.
Rowling, a former unemployed single mother, has won numerous literary awards, Most recently she was named Author of the Year at the annual British Book Awards.
Warner is currently developing "Harry Potter and the Sorcerer's Stone" as a movie. The series was an early leader in online sales during the Christmas season.
Mattel, maker of Hot Wheels and the whole Barbie brigade, has been struggling to climb out of a slump after its $3.5 billion acquisition last year of the software developer The Learning Co. Last week, the company's chairwoman and chief executive resigned after Mattel posted an $18.4 million loss for the latest quarter. The Learning Co. racked up a 1999 pretax loss of $206 million.
The company's share price took a dive in September and has been hovering near its 52-week low of $10.
The merchandise will be carefully controlled and limited, the company said.
"Our intent is to judiciously roll out the product and not flood the market," Dan Romanelli, Warner Bros. Worldwide Consumer Products president, said in a statement. "We're looking to support the literary and film property as a long-term franchise. Strategies and timing will be determined on a market-by-market basis. In the U.S. and U.K. (where the series gained its first loyal following), the product launch will be concurrent."
The first available Harry Potter licensed products, based upon the book, will debut at Warner Bros. Studio Stores in the fall. The second phase of product will debut in conjunction with the film's cinema release in 2001. Warner Bros. Worldwide Consumer Products gained all worldwide licensing and merchandising rights for the book series as part of an overall deal when Warner Bros. Pictures signed with author Rowling.
The deal includes development of two films based on the first two books of the series -- "Harry Potter and the Sorcerer's Stone" and "Harry Potter and the Chamber of Secrets." Mattel's licensing agreement involves the two books and films.
"Mattel Wins Harry Potter Toy Rights"
(Associated Press, February 10, 2000)
NEW YORK (AP) -- Mattel Inc. has been awarded the much sought-after rights to manufacture toys based on Harry Potter, the best-selling children's book series that is being made into a feature film.
Warner Bros. Worldwide Consumer Products on Thursday announced the licensing agreement with Mattel, the world's largest toymaker. Terms of the deal were not disclosed.
There has been speculation for months over who would gain the rights to make toys based on the Harry Potter stories, which describe the education of young Harry at Hogwarts School of Witchcraft and Wizardry. The books are written by British author J.K. Rowling.
The best-selling series -- three books are out so far, and four more are planned-- has been published in 115 countries and in 28 languages. More than 18.4 million books have been sold in the United States alone.
The companies declined to give any details about the new toys, except to say that the line would include dolls, games and high-tech toys.
Warner Bros. was awarded the worldwide licensing and merchandising rights last fall. It is part of the company's deal with the author to develop two films based on the first two books of the series -- "Harry Potter and the Sorcerer's Stone'' and "Harry Potter and the Chamber of Secrets.''
Harry Potter products are expected to be available next fall, and initially will be sold exclusively in Warner Bros. Studio Stores around the country. The merchandise will be available at other retailers during the holiday season.
Warner Bros. is a division of New York-based entertainment and media conglomerate Time Warner Inc. |
