“Hasbro (NASDAQ:HAS) has transformed into an entertainment and licensing company as it moves beyond the stigma of being a traditional physical toy firm in this digital age.”
“Hasbro's Fundamental Business Model Shift,” Seeking Alpha March 11, 2015
In recent months, I have been seeing an increasing number of articles questioning the viability of the toy industry. I have seen nothing, however, like the quote I saw by a stock market analyst, writing for Seeking Alpha, a subscription service that offers analysis on publicly held companies; and for me on toy and play businesses.
The author described being affiliated with the toy industry as a “stigma.” A stigma, the word popped out at me as I read what I thought was an interesting piece on Hasbro’s embrace of entertainment. Was being affiliated with the toy industry now perceived as such a negative that it was seen as a major negative in determining investment opportunities?
Here are two other quotes from the article:
“Though concerns over the demise of physical toys may not be completely unfounded in this digital age, Hasbro is less a toy company than it is a licensing firm.”
“The market is finally catching on that Hasbro is no longer only a toy company in the traditional sense.”
“Demise of physical toys;” “no longer only a toy company;” when you read statements of that kind you begin to ask yourself: “In just how much trouble is the toy industry brand?” What is being done to defend and define the toy industry brand. And even more to the point: “Is the toy industry aware that it is a brand?”
I will talk about that in my next posting.