D&D Movie/TV D&D Movie Hit or Flop?

[Zardnaar]

Of course I can. The point being made is "conflating a streamer or production company "losing money on streaming" with a movie losing money on streaming." Yes, absolutely that's provable. You have ADMITTED some movies have done well on streaming, from the very streaming services which overall are losing money, which proved that point. You went into quite the detail on the sale of a movie to I think it was Netflix which was quite a tidy profit for the seller. Losing money on streaming overall as a platform is not the same as a movie losing money on streaming. It is, and always was, a bad point.




Thank you for again admitting that a streamer or production company "losing money on streaming" is not the same as a movie losing money on streaming.

I get you think that's not the case with this Dungeons and Dragons movie, but we're talking about you as a matter of routine conflating those two concepts. If the basis of your argument is wrong, it's going to remain wrong when applied to any movie because it was wrong to begin with. How a streaming platform does in general is not related to how a particular movie does in streaming.


Nothing you said had anything to do with this one point we're discussing about you conflating streaming platform performance with particular movie performance in streaming.

Well aa I said I think it's unlikely a sequel is coming anytime soon.

If I'm wrong no big deal.

 

[Mistwell]

Well aa I said I think it's unlikely a sequel is coming anytime soon.

If I'm wrong no big deal.

It's sequel being greenlit or not is also not related to whether the Paramount+ platform is doing well or not as a generalization. I mean, do you think the odds of a sequel would be much higher if Paramount+ were doing better in general? It's not even Paramount+ making that decision.

 

[Zardnaar]

It's sequel being greenlit or not is also not related to whether the Paramount+ platform is doing well or not as a generalization. I mean, do you think the odds of a sequel would be much higher if Paramount+ were doing better in general? It's not even Paramount+ making that decision.

If Paramount was doing better I think tge odds would go u.

I'm not sure on Paramounts overall status but Paramount+ is burning through the cash

 

[bedir than]

Paramount Global ad sales, for traditional tv and FAST are up nearly percent in upfronts this year.
It turns out that the ad world likes the integration of linear, FAST (Pluto) and +.

Paramount streaming and sports are up big. CBS prime time is down.

The expectation from marketers is that Paramount having two streaming services in the top ten is good for them. The only other conglomerate with two in the top ten is Disney.

edited: I had Vudu when I meant Pluto. Too many Fast's have the letter U

 

[Myrdin Potter]

“The company said its margins at its entertainment segment are expected to decline due to industry strikes as well as a $25 million “Dungeons & Dragons: Honor Among Thieves” production asset impairment charge.”

Their estimates of future revenue obviously did not cover the asset they had (cost) so they were forced to do a fairly sizable write down.

Considering the size of their D&D business (not huge), this represents a pretty big blow.

Hasbro cuts revenue forecast as writers' strike to hit entertainment unit

Separately, the toymaker said it would sell its eOne film and TV studio to Lionsgate Entertainment for about $500 million.

www.cnbc.com

 

[Ferrousbones]

Edit: removed incorrect definition information.
Some further details from the article:

The company forecast fiscal 2023 revenue to decline 3% to 6%,...

The Monopoly maker’s net revenue fell 10% to $1.21 billion in the quarter ended July 2,...

Separately, the toymaker said it would sell its eOne film and TV studio to Lionsgate Entertainment for about $500 million as part of its efforts to focus on more profitable brands.

The toymaker, however, beat second-quarter revenue estimates, sending its shares up 2.5% in premarket trading.

So, it looks like is expecting total revenue to drop this year, but not as much as was estimated.
Selling eOne might also be a bad sign overall for D&D media, since even if more is produced, the producers may not be very faithful to the source.

 

[Myrdin Potter]

First, from Investopedia: Understanding Impairment Charges

Goodwill (Accounting): What It Is, How It Works, and How To Calculate

Goodwill is an intangible asset that's recorded when one company acquires another. It addresses brand reputation, intellectual property, and customer loyalty.

www.investopedia.com

Some further details from the article:




So, it looks like Hasbro has an estimated $25 million in worthless assets to get rid of, and is expecting total revenue to drop this year, but not as much as was estimated.
Selling eOne might also be a bad sign overall for D&D media, since even if more is produced, the producers may not be very faithful to the source.

I am not sure why you added a whole bunch of irrelevant accounting to your analysis. Plus, the $25M of assets was clearly identified - production costs of the D&D movie. I am an accountant and impairment of goodwill really is not relevant. This was not a acquisition.

Part of the cost of the movie was capitalized as an asset to offset (amortize) against the future streaming revenue (matching). Whatever scenario used to decide to defer that much cost is now deemed to be wrong and the asset is not supported and must be written off (impaired / expensed).

If I were the SEC I would be asking some hard questions about that. Basically, some accountant (and they just swapped CFO and the new one is not going to want this issue to linger) came up with a valuation that allowed Hasbro to avoid taking a bigger loss from the poor box office and deferred the loss to provide proper cost for future revenue from the movie. A really short time later that was written off. Looks pretty bad. Auditors need to be wondering as well.

It pretty definitely answers the open question about future revenues offsetting the cost of the movie. Nope.

 

[LuisCarlos17f]

The goal is D&D as a multimedia franchise, about different types of products, not only to sell more TTRPGs. Also Hasbro wants to sell collabs with other franchises from other companies, like Stranger Things or Ricky&Morty, but it is not so easy like in Magic: the Gathering.

And Paramount needs an important IP for the section of animation besides SpongeBob Squarepants.

Other reason is Paramaount has to prove they can produce "epic fantasy" using this or another IP by other company.

 

[Ferrousbones]

I am not sure why you added a whole bunch of irrelevant accounting to your analysis.

Are you meaning the quotes about revenue and eOne, or just the impairment?

Btw, thanks for adding more context.

 

[Myrdin Potter]

Are you meaning the quotes about revenue and eOne, or just the impairment?

Btw, thanks for adding more context.

Just the accounting explanation in the write-off, which you grabbed the wrong body of work. Goodwill impairment is different than what is basically an inventory write-off.

Hasbro stock was up - the sale of e-one was. Or a complete disaster and the forecasted revenue is poorer than initial expectations but people feared it would be worse. So the bad news was not as bad as feared.