How Pony is Formed: Production and Business Thread

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Re: How Pony is Formed: Production and Business Thread

Postby ilcane87 (?) » Wed Sep 11, 2013 2:39 pm

Thought I'd post the transcript of Hasbro's Investor Day Conference, which is full of interesting tidbits:

http://seekingalpha.com/article/1685782 ... e_readmore

I also attached a .doc version, for those who have troubles with the website.
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Postby SlateSlabrock (?) » Wed Sep 11, 2013 9:50 pm

Eesh, 47 pages, and:
You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to http://www.SeekingAlpha.com. All other use is prohibited.

Long story short, they're very excited about (a) entertainment-based franchise brands and (b) global distribution. Also Play-Doh :v:

One of the points they emphasize is that boys and girls want "fluidity" in their play, combining different brands and media.

They also say they see huge growth from TV-based brands, most notably Transformers but also My Little Pony:
Now we are just beginning this process with My Little Pony. We increased revenues 65% from 2010 to 2012, turning around a brand that was on the decline. And our TV entertainment strategy that we implemented in 2010 is the key driver of this turnaround. Through the first half of the year, Pony revenues are up 50%.


LPS is "already in a virtual ratings tie" with MLP :v: while MLP is #1 show for girls in Brazil.

Equestria Girls "has generated over 21 million impressions."
Most importantly, this launched an all-new IP for Hasbro which is driving incremental merchandise revenues. In the end, we anticipate our total return to be 16x our initial investment in 2013.


They're happy with EqG's theatrical reception and DVD sales. They're also looking at EqG as a potential model for frequent refreshes of other girls' product lines, like LPS. Not necessarily through movies, but through changing up the brand.

We continue to deliver break-frame marketing and PR programs, such as the My Little Pony themed window display at the fashionable Selfridges department stores in the U.K. this spring. And at Colette, one of the most credible fashion boutiques in the world, and My Little Pony will be there with a signature line of clothing in Paris this September.

And since the heart of our brand is all about friendship, we continue to spread the word and ponify fans one friend at a time. Our ponification stations, where fans get ponified with colored hair, nails and even My Little Pony cutie marks have become prominent in events at places like our pop-up shops, comic cons, L.A. Film Festival and even at trade events like toy fair and licensing show.
[...]
As part of our fourth season, TWILIGHT SPARKLE becomes a princess and grows wings. Let's take a look at a spot from our fall TV campaign and our product line that ties directly into the Crystal Princess Celebrations Fantasy.


A question about whether adding male characters would help sales of My Little Pony:
Part of [reinventing the brand] has really been building out the layers of the IP with hundreds of characters in lore that has really been embraced by the fans. And in that, you find all sorts of characters. There are plenty of male of ponies in the lore. If you're interested you can read Elements of Harmony. It's a book that has all other different characters listed out and it goes up episode by episode. It's actually a great fan read. And even last year, just kind of reinforced our male pony heritage, we've had a big royal wedding celebration and offered that both male and female ponies as part of that storyline and also in product and did really well for us.
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Postby Rarietty (?) » Wed Sep 11, 2013 10:40 pm

Crystal Princess Celebrations Fantasy.


Okay, so I assume that most toys released in correlation with season 4 will most likely be Princess Twilight related. Not big news there. Might as well milk that cow for as long as they can.

but...:smirk:

What does that even mean? Fantasising about celebrations that have to do with crystal princesses? Celebrating the ideal fantasy of becoming a crystal princess? Or, simply that market research has shown Hasbro that girl's respond to those four words positively and they decided to jumble them together to make a tagline that makes absolutely no sense either in or out of context?

Now I really can't wait to see how they'll advertise season 4.
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Postby The Outlander (?) » Wed Sep 11, 2013 10:49 pm

Deborah M. Thomas, Hasbro Representative, speaking of EqG:

The development of the film was a small investment captured within our existing program development budget.

So we had 13 episodes in Season 3 because EqG literally cut into the yearly program development budget, which they hadn't changed? :rainbert:

Guess everyone saying the movie hurt the show regardless of how much people enjoyed it were right all along.
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Postby Pocket (?) » Thu Sep 12, 2013 3:30 am

In hindsight, I doubt there was ever any chance of them producing more than 13 episodes. They probably would have rolled the money over into the next season's budget once they decided there would be another season, and proudly claimed "Look, we only used half our budget this year!"
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Postby ilcane87 (?) » Thu Sep 12, 2013 7:34 am

The Outlander wrote:Deborah M. Thomas, Hasbro Representative, speaking of EqG:


So we had 13 episodes in Season 3 because EqG literally cut into the yearly program development budget, which they hadn't changed? :rainbert:

Guess everyone saying the movie hurt the show regardless of how much people enjoyed it were right all along.


S3 was going to be 13 episodes long regardless, reaching the 65 eps benchmark for syndication by the end of the third season seems to be Hasbro's policy for animation; that is also the case for Pound Puppies, Littlest Pet Shop, etc...
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Postby Robotzor (?) » Thu Sep 12, 2013 12:18 pm

Pocket wrote:In hindsight, I doubt there was ever any chance of them producing more than 13 episodes. They probably would have rolled the money over into the next season's budget once they decided there would be another season, and proudly claimed "Look, we only used half our budget this year!"


I don't know about that; recently I thought coming in ridiculously under budget was a good idea, until I actually started learning behind the scenes budget stuff. If you come in really low, finance will be wondering how projections got so botched and what you are doing asking for so much money you don't need, money that could have been allocated elsewhere that would have used it.

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Postby Mr. Big (?) » Thu Sep 12, 2013 4:11 pm

ilcane87 wrote:
S3 was going to be 13 episodes long regardless, reaching the 65 eps benchmark for syndication by the end of the third season seems to be Hasbro's policy for animation; that is also the case for Pound Puppies, Littlest Pet Shop, etc...

Speaking of which, apparently the current season of "Pound Puppies" is going to be the last. Some fans started a "Save Pound Puppies" page.
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Postby SlateSlabrock (?) » Thu Sep 12, 2013 4:27 pm

ilcane87 wrote:S3 was going to be 13 episodes long regardless, reaching the 65 eps benchmark for syndication by the end of the third season seems to be Hasbro's policy for animation; that is also the case for Pound Puppies, Littlest Pet Shop, etc...

Pound Puppies had a 13-episode season in 2012 as well. Now, it's been a weaker performer for them than LPS, but I wonder if they've simply been shaving a little off the top of all those TV properties over the past year or two to pay for it. Their budget could be for the whole TV division, or for all girl-targeted shows, or some larger slice than just Pony Budget.
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Postby Mordja (?) » Sat Oct 19, 2013 7:08 pm

So a question to those more in the know...
Do we know who's doing the actual animation on Season 4? Because Top Draw's site has nothing. :pinkieshrug:
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Postby Mr. Big (?) » Sat Oct 19, 2013 7:25 pm

Nope. Could be Top Draw (but they're keeping it quiet), could be some other studio.
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Postby Bumble-B (?) » Sat Oct 19, 2013 7:31 pm

Mordja wrote:So a question to those more in the know...
Do we know who's doing the actual animation on Season 4? Because Top Draw's site has nothing. :pinkieshrug:


Probably no change in quality if they did switch oversea companies. Billy and Mandy remained identical after switching over to another Korean company.
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Postby Mr. Big (?) » Sat Oct 19, 2013 7:34 pm

And some shows use multiple overseas studios at the same time. "Tiny Toon" is a notable example (six different studios all over the world in season 1, IIRC).

Currently, the Simpsons is animated at two different Korean studios. Can anyone tell the difference?
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Postby Lorce (?) » Sat Oct 19, 2013 7:35 pm

Mr. Big wrote:Nope. Could be Top Draw (but they're keeping it quiet), could be some other studio.

Well, i've been sceptical about Top Draw for a while now, but checking the dates on their current Production projects there's also the possibility they're just slacking with updating the site. :pinkieshrug:
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Postby Mr. Big (?) » Sat Oct 19, 2013 7:41 pm

Going back to shows using multiple studios, this exact thing happened in season 1 of FiM. Half of the episodes were animated at Top Draw, while the other half was done in-house at Studio B (now known as DHX Vancouver).

Can anyone tell the difference?
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Postby Fizzbuzz (?) » Sat Oct 19, 2013 7:45 pm

Mr. Big wrote:Going back to shows using multiple studios, this exact thing happened in season 1 of FiM. Half of the episodes were animated at Top Draw, while the other half was done in-house at Studio B (now known as DHX Vancouver).

Can anyone tell the difference?

I think the only difference was that Top Draw and Studio B used slightly different animation smear effects during quick movements. Someone posted a comparison a few months ago, but I don't remember where it is.
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Postby Bumble-B (?) » Sat Oct 19, 2013 7:53 pm

Mr. Big wrote:Going back to shows using multiple studios, this exact thing happened in season 1 of FiM. Half of the episodes were animated at Top Draw, while the other half was done in-house at Studio B (now known as DHX Vancouver).

Can anyone tell the difference?


EquestrianGuy actually said he thought the animation company doing Swarm of the Century probably did the best animation for the season. I dont remember exactly what he said but i think he said the episode had the best facial expressions and original poses (at least in S1, i think he said). i havent seen the episode since 2012 and i only see some screencaps now and again which admittedly, do look quite good even today
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So it's possible that whatever company did that episode 1Upped the other, at least if you use that company's episode to compare every other episodes from the other company
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Postby Mr. Big (?) » Sat Oct 19, 2013 7:56 pm

"Swarm" was animated at Studio B.

Here's a list of episodes that Studio B-DHX did:

Friendship is Magic, Part 2
Applebuck Season
Dragonshy
Swarm of the Century
Fall Weather Friends
Sonic Rainboom
A Dog and Pony Show
Over a Barrel
A Bird in the Hoof
Owl's Well That Ends Well
Party of One
The Best Night Ever
The Return of Harmony, Part 1
The Return of Harmony, Part 2

Every other episode is Top Draw.
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Postby Bumble-B (?) » Sat Oct 19, 2013 8:12 pm

Mr. Big wrote:"Swarm" was animated at Studio B.

Here's a list of episodes that Studio B-DHX did:

Friendship is Magic, Part 2
Applebuck Season
Dragonshy
Swarm of the Century
Fall Weather Friends
Sonic Rainboom
A Dog and Pony Show
Over a Barrel
A Bird in the Hoof
Owl's Well That Ends Well
Party of One
The Best Night Ever
The Return of Harmony, Part 1
The Return of Harmony, Part 2

Every other episode is Top Draw.


Huh, i guess that was why he was disappointed to realize that Studio B wasnt animating FiM anymore because he noticed a dip in quality or less cartoony/exaggerated facial expressions in S2 and S3 from Top draw.

I think it might relate to McCracken saying he didnt want to have WoY be animated outside North America cuz you lose that cartoony spirit in the characters' facial expressions and movements. I mean, I cannot imagine WoY looking this good every episode if it was mainly done outside of Canada (North America).

Maybe it's true, maybe it's not for FiM though i gotta gravitate towards probably true that Studio B mightve had more effort. I mean, the show still has good animation moments though i wouldnt be surprised if those Studio B eps had more consistent moments throughout the episodes than Top Draw eps because you have more control over the entire episode.

The fact that they have Party of One on their shoulders at least says abit :v:

Edit: One thing both companies did really bad in was their flight animation. :vomitpony: Thankfully it improved and you can even see that in Sonic Rainboom and RtH and afterwards with Top Draw.
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Postby PictishBeast (?) » Mon Dec 02, 2013 11:00 pm

Here's an AdAge article about Hasbro's marketing strategy, with quotes from Hasbro's CMO.

I like the very mercenary (but honest) way he describes the company's approach to things like Equestria Girls and Nerf Rebelle. Companies don't greenlight things like EqG because they saw humanized fanart online, they do it because it represents a "white-space opportunity" in a "low-growth market." :spike101:

The company is also putting more stock into girls' brands, which saw a 29% jump in sales in the third quarter. After the success of TV show "My Little Pony: Friendship is Magic," (which at one point had a substantial male following) Hasbro decided to extend the brand for older girls. That resulted in "Equestria Girls," a show and doll line that leans into what Mr. Frascotti calls "more advanced topics for girls. That's what you do in a market that doesn't have huge growth," he said.

Hasbro also extended its Nerf brand into girls' territory by creating Nerf Rebelle -- the same shooters and projectiles it markets to boys, but in prettier packaging. "[Nerf Rebelle] is an example of identifying an underserved or white-space opportunity in a market like the U.S., which is low growth," said Mr. Frascotti. "We noticed that while there were a lot of active-play opportunities for boys, there weren't as many for girls. And girls today are different than girls 20 years ago."
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Postby Headless Horse (?) » Mon Dec 02, 2013 11:03 pm

"At one point?"

"Had?"

:rariwhat:
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Postby Dexanth (?) » Mon Dec 02, 2013 11:13 pm

Oh news media, never change :-P
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Postby Fizzbuzz (?) » Mon Dec 02, 2013 11:19 pm

"more advanced topics for girls". :-/ Considering how poorly things like Brad came out, I'm glad Hasbro is at least forcing their dumb ideas into spinoffs instead of on FiM itself.
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Postby Bumble-B (?) » Mon Dec 02, 2013 11:25 pm

I'll never get business talk :v:

No one speaks like that in real life and it just makes you look like you have your head up in the clouds, totally unaware of the customers and their possible concerns.

Maybe it's because I see it too much in like the videogame industry. Microsoft producers defending things like Always On and talking in a way it just becomes white noise because you know the person is just :derp: because he's getting paid to do it, rather than actually believe it's a good idea for consumers.

"More advanced topics for girls"

Arf arf :gotcha:
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Postby Homeswirl (?) » Mon Dec 02, 2013 11:30 pm

"More advanced topics for girls" could almost be a quote from Lauren about FiM itself.

It just goes to show that the execs ultimately have no clue what's in the show, and no clue how to bring something better to the table. :-/
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Postby Tears (?) » Mon Dec 02, 2013 11:43 pm

AppleCobbler44 wrote:I'll never get business talk :v:

No one speaks like that in real life and it just makes you look like you have your head up in the clouds, totally unaware of the customers and their possible concerns.



This stuff isn't for the customers though, it's for the investors. And from the short while I've been paying attention, Hasbro seems to be seen as a solid stock that continually fails to meet forecasts, so I can see why they focus on under served high-growth market segments when they're talking to investors (and mental fan bases who aren't even supposed to be reading this stuff)
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Postby PictishBeast (?) » Tue Dec 03, 2013 1:11 am

^^ What Tears said. Not only is this pure investor-shibboleth, but the CMO is being interviewed by an industry trade journal written exclusively for marketing professionals.

Corporate speech has its own phrasings and buzzwords and style. Isn't nature fascinating? :allears:
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Postby Dexanth (?) » Tue Dec 03, 2013 2:11 am

It's fascinating in that so much of it appears meant to obscure the truth behind a heaping layer of...well, you can guess :smirk:
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Postby Headless Horse (?) » Tue Dec 03, 2013 2:22 am

It's amazing how often you'll see "We're losing an ass-ton of money" recast into "The Company recognized a record quarter of sales, before counting significant one-time write-downs resulting in a $0.57 loss per share" and the like.
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Postby SoundMonkey44 (?) » Wed Dec 04, 2013 10:33 pm

I could be wrong, but despite what Hasbro says ( seriously had a size able male fanbase?). Seems MLP and girl based toys in general are selling better for them then some of their male oriented toylines, but they don't want to admit it. Heck there even making nerf products geared towards girls now.

Hasbro, just admit that your "girl toys" are selling better then your "boy toys". And that some men like set properties as well.

Also admit the companies you license out your properties too make better swag for them then you do. :v:

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Postby Homeswirl (?) » Wed Dec 04, 2013 10:51 pm

I don't think it's about selling volume necessarily, but "growth". The relative rise in sales of new girls' stuff might be higher than the saturated boys' market.
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Postby Fizzbuzz (?) » Wed Dec 04, 2013 10:53 pm

That's pretty much it. Cut through the business-speak in that article mentioned earlier and the Hasbro suit is basically saying that there's money in toys "for" girls since other companies don't bother making those sorts of toys "for" them.
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Postby Nissl (?) » Sat Dec 07, 2013 1:29 am

Ratings are in for last week. Castle Mane-ia was Hub's highest rated show, scoring 463k. Wish the drop from the premiere's 721k hadn't been quite so big, but what can you do.

Two things jump out at me in this week's data. One is that the reruns before MLP and LPS did *much* worse. Guess kids are getting more discerning these days. Hub's programming director mentioned it perhaps 18 months ago but now we're getting some real confirmation. The other is that Pound Puppies seems to be doing pretty well, by Hub standards, in that 4 PM weekday after school slot. Good enough to keep it going for a while?

Hub's top 10 is 7 DHX productions, two movies, and an Animaniacs rerun. Hasbro better keep that relationship working.

I'm impressed how well Tiny Toons and Animaniacs reruns from two freakin' decades ago are doing with the kids in general, actually. Maybe they could also try Garfield and Friends? I remember that one being good too.
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Postby Homeswirl (?) » Sat Dec 07, 2013 4:53 am

I remember there being a TON of pop culture references in Animaniacs, so that would really date itself. But I guess there were also plenty in shows we watched as kids, and not understanding that part of the humor didn't stop us either. :pinkieshrug:
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Postby Grue (?) » Sat Dec 07, 2013 8:07 pm

At least it beat Alvin and the Chipmunks. Would've been embarassing if that was Hub's best timeslot.
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Postby Killing Vector (?) » Sun Dec 08, 2013 3:46 am

Dave Polsky ‏@DavePolsky wrote:Doubt it. S3 schedule was extremely compressed. S4 way less so. @Pixel_Grip94 "Were any episodes for #MLPseason4 originally for season 3?"

I know we've had reason to believe it for a while, but I think this is the first time we've heard from the horse's mouth (so to speak) that season 3 was written in a much shorter time frame than season 4 (and presumably 1 and 2).
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Postby Fizzbuzz (?) » Sun Dec 08, 2013 5:46 am

I wonder if the concurrent production of EqG had anything to do with S3's production being so tight.
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Postby Dexanth (?) » Sun Dec 08, 2013 6:36 am

It's been all but confirmed that that was the case.
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Postby Frith (?) » Fri Dec 27, 2013 5:02 pm

Ratings of Daring Don't, Flight to the Finish and Power Ponies haven't been put in this thread so here they are:

Daring Don't: 397 000
Flight to the Finish: 568 000
Power Ponies: 683 000

DHN published also the Most Watched MLP Episodes ranking which shows that Flight to the Finish and Power Ponies are the most-watched non-two-parters in show's history.

So it can be said that the show is doing quite well at the moment.
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Postby Frith (?) » Fri Jan 03, 2014 12:32 pm

Latest ratings are in. "Bats!" drew 531 000 viewers on Saturday and was the most watched Hub's show last week.
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