Exclusive: Some breaking news. We just heard from eOne employees that there will be a 10 percent cut in viewership for film and TV viewership at the big little Hasbro.
A note has just been sent to all employees by Steve Bertram, Head of Film & TV, explaining the decision. You can read the full note below. We reached out to eOne for comment.
The company employs around 1,200 people worldwide in all divisions. Movies and TV account for around 30-50%, so cuts are likely to affect around 50-60 employees worldwide.
This has been the influx of traffic in traditional film and television studios over the past two years as the market evolves and viewing habits change. The pandemic has accelerated this change and made things more difficult for companies large and small that have seen a decline in production and a halt to traditional patterns of film distribution over the past 12 months.
Hasbro tops its fourth quarter estimate as toy sales help it thrive in the 2020 Challenge
We revealed last fall that eOne would end its German theatrical run following contractions for film crews in other markets as third-party acquisition waned.
The cuts were widespread across the traditional studios. Just today, we revealed that Disney will be shutting down Blue Sky Studios.
Yesterday, Hasbro, which acquired eOne for $ 3.8 billion a year ago, announced its earnings for both the fourth quarter and the full year 2020, although the releases are not sending into deals as is usually the case. The results were consistent, largely driven by games and board games. In the fourth quarter, net revenue increased 4% to $ 1.72 billion, while revenue increased 20% in TV / Film / Entertainment. However, for the full year of 2020, net revenue decreased 8% to $ 5.47 billion. Hasbro earned $ 1.27 per share, beating estimates of $ 1.14.
In a post-earnings call available online, the company was optimistic about film and television prospects, and said it would invest “between $ 675 million and $ 750 million on content across written and unrecorded live-action films, and mobile TV and movies in 2021, up from 439.” Million dollars. Last year. “
Toymaker Hasbro has a treasure trove of potential franchises to leverage in movies and TV and has announced new projects based on Dungeons and dragonsAnd the My little ponyAnd the power Rangers And backgammon The risk, Among others. It also has leading baby brands from eOne Peppa Pig And the PJ Masks To work with. GI Joe, Action Man, and Transformers are among the other franchise characteristics.
Last year, eOne attracted former HBO chief Michael Lombardo who joined as head of global television. But there were also big expenses such as chief strategy officer Peter Michelli and Mark Gordon joining a production deal.
Most notable films and television have been included in the studio in recent years 1917 And an Academy Award winner Spotlights On the big screen, production on the small screen or licensing deals for the likes Hell is on wheelsAnd the Fear of walking deadAnd the And Hamilton scoredAnd the Stop and catch fire And the Designated Survivor.
Here is the internal memo sent by Bertram on Tuesday:
Over the past several years, we have shared with you our strategy to transform our film and television business towards greater control and creative management of high-quality intellectual property. This shift was a direct response to the massive disruption of the traditional studio model as the tech giants invested heavily in their platforms and original content creation. The effects of the epidemic have certainly accelerated the pace of these seismic changes in our industry.
As a truly platform-neutral company, we are well positioned to thrive in the new market, particularly with the popular Hasbro brands. However, as we evolve with the changing industry dynamics as we have, we must develop the focus and structure of our organization around the world.
To that end, I feel deeply saddened to share with you that we bid farewell to a number of our colleagues today and have started conversations with others about possible changes in their roles. These team members have done outstanding work and have shown strong loyalty to eOne throughout their tenure, and we are very grateful to all of them. I want to acknowledge their vital contribution to our business and thank each of them for their commitment and countless successes.
The roles affected by this reorganization represent 10% of our film and television workforce. For employees in the affected roles, we are thinking critically of other potential opportunities across the company.
To be clear, our realignment is not the result of poor business performance during the pandemic; The industry has been transforming for a long time with consolidation around new global platforms. While we have prolonged this action as a result of the challenging global climate, it is more important than ever that our organizational structure reflects business needs. With a promising creative pipeline across cinema and television ahead of us and hopefully a pandemic recovery on the horizon, it is imperative that we be prepared to seize future opportunities.
Today we focus on supporting our affected colleagues and providing support to departing team members with termination and healthcare packages, as well as professional services and assistance programs. Affected team members were notified and received further details on a personal basis. To those leaving today and over the next few weeks, I would like to thank each of you for your contributions to eOne and offer to help me and our top leaders as you think about the future. Please feel free to contact us directly.
A number of business leaders will meet with their teams to share more information about our structure and vision for the future.
While days like today are extremely challenging, I remain incredibly optimistic about the future of our business – and I look forward to achieving our goals together.