Here's How Disney's 'Star Wars: The Force Awakens' Will Also Benefit Hasbro
- During Estimize's weekly talk show, the panel discussed Walt Disney Co (NYSE: DIS)'s upcoming "Star Wars" film.
- The panel agreed the film will benefit Disney, and Hasbro, Inc. (NASDAQ: HAS)
- Sales of Star Wars related toys is tracking to be four times greater than "Frozen" merchandise.
Will the upcoming release of Star Wars prove to be the biggest movie ever?
During Estimize's weekly talk show on Monday, Chris Camillo, CEO and co-founder of TickerTags, argued that "Star Wars: The Force Awakens" won't be the biggest film of the year, or the decade, rather it will be an "anomaly in the entertainment business."
"This is the black swan of entertainment events," he Camillo said. "I think we will get the highest grossing global film we have seen in recent history."
Camillo said "much more importantly," is the relationship between revenue and licensing fees for the movie "will be through the roof." He further pointed out that "Star Wars" related merchandise and films is proving to be extremely popular. As an example, sales of Sphero's new BB-8 droid sold out within hours of its debut at Amazon.com, Inc. (NASDAQ: AMZN), DisneyStores.com, and Sphero.com.
In fact, the BB-8 toy is generating four times as much interest as Disney saw last year with its ultra-successful "Frozen" toys. Put into perspective, "Frozen" dolls proved to be one of the top selling dolls of the decade and "Star Wars'" film hasn't even been released yet.
Meanwhile, another top selling "Star Wars" themed toy is the officially licensed Lightsaber, which is sold by Hasbro.
However, Hasbro's "one weakness," Camillo noted, is the company's girls division that has been a drag on the company's third-quarter results. As such, heading into the fourth quarter, the company may see a huge benefit from "Star Wars" sales.
Disney is also set to release "The Good Dinosaur," and pre-review sentiment (i.e., people who have seen the movie in private), is "very high" that could materialize into another hit for Disney's Pixar studio. In addition, Disney has gone out and bought back almost a years' worth of their stock a few weeks ago below $100 per share.
Bottom line, Camillo argued that Disney has been planning its "Star Wars" film for nearly two years and they have a great understanding of how to properly monetize it. Meanwhile, the investment community may actually be "clueless" as to what impact the franchise can have on the bottom line as the studio releases a plethora of new films over the coming years.
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|Sep 2016||Drexel Hamilton||Downgrades||Buy||Hold|
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