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Message: <blockquote data-quote="LordEntrails" data-source="post: 9060384" data-attributes="member: 6804070">Everyone here is talking about short term profits, not long term BRAND profits.Hasbro has stated that this is about building a brand and a movie franchise. That means they are more concerned with the profits of the next 10 movies (and TV shows, and merchandising) than they are about this one (HAT).Every day my wife spends money for companies that do not see a direct return on the money she spends. It's called branding. It's not about turning a profit on the current product (if there even is one, many times its simple corporate branding for name recognition with no product being sold). It's about building a brand so your next product (or the one after that) turn a profit and makes up for your branding investment.Its about when they expect to see a ROI. You all seem stuck on evaluating if this movie is a success or not based upon short term profitability of the movie itself. Not on the long term profitability of the brand (D&D).Examples: Nike's "Seen it All" brand campaign this year. They are not selling a shoe, not directly, they are selling their brand, their "lifestyle".  Or DDB New Zealand. Or the ones Dove runs periodically about authenticity and the female body.Yea, that argument made no sense to me and was not what I thought I was commenting on/supporting. Mea Culpa.This all comes down to how you do your accounting. If HAT total cost is $250mil but through it's life only brings in $200 mil, BUT increases the brand so much that 1 million more players start buying books, and the next movie makes a @200 mil profit and the TV show makes a profit, and the branded merchandise sells more... HAT will not be credited with turning a profit, even though it helped increase profits of the Brand. But, it will have been a significant factor and investment in the brands future.Branding is different than marketing.Branding is all about market recognition so the next time you sell a product, you sell more of it. It's about investing in your future, not making money on your current product. In this case, it's so that the next 10 movies they make will be financial successes. Not so that HAT ever breaks even or makes money on its own.You're wrong, at least in the short term and in the way profitability in this thread is being discussed. I know it doesn't make sense. at first blush, but many companies step back and think long term. (And, many don't.) They aren't worried about what product A sells, they worry about what product A says about their brand. What it's impacts to product B, C, D... means.Yes long term they have to make money. But not in the near term or even on a single product. Weren't you the one who mentioned "loss leaders"? i.e. I'm going to sell this product at a loss so I can sell these ten other products for a bigger profit?</blockquote>

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