Consider Hasbro Studios – the entertainment division of Hasbro, Inc. (NASDAQ:HAS). It’s leveraging its media expertise to make film forays in the Girls category. It has collaborated with Screenvision and Shout! Factory on the feature-length film My Little Pony Equestria Girls, which will be released this month.
Investors should note that Hasbro, Inc. (NASDAQ:HAS) can use this film and its partnerships with other companies to grow its core brands – the film portal for customers to offerings from the company’s toys and games division. Hasbro Studios is currently developing a number of full-length films based on its popular brands, which should grow sales accordingly of those brands.
LeapFrog Enterprises, Inc. (NYSE:LF) is a company fully embracing the digital world and seeing growth from its initiatives. The company’s CEO, Mr. John Barbour, said,
…net sales of digital download content from our curated selection of over 475 titles, including LeapFrog-developed content and content from 30 media partners, were nearly four times the prior year as families took advantage of our 24×7 online App Center.
In addition, LeapFrog Enterprises, Inc. (NYSE:LF) CFO Mr. Ray Arthur earlier said:
We are excited about our market-leading portfolio and new product launches for 2013, including a new learn-to-read system, new iPhone and iPad app activity products and new LeapPad tablets.
LeapFrog Enterprises, Inc. (NYSE:LF) looks to hop over the competition through directing its digital products to the overall one-to-nine year-old age group.
The company has educator-approved applications (apps) for the iPhone and iPadfor children in the specific two-to-nine age group.
The company is getting them while they’re young – those children who often can sway their parents into buying them the latest and most innovative educational toys of the digital variety. Investors should consider a company that’s at the forefront of the digital revolution as applies to this market segment.
It’s important to consider those traditional toys and games companies marketing those iconic traditional products to children, while not ignoring the promising ventures of companies with a core focus on the newer digital medium.
Bottom line
What can investors take away from all of the above? My personal choice would be Mattel, Inc. (NASDAQ:MAT); it has a history of getting the most mileage out of its storied brands while always innovating in the marketplace with brands such as American Girl. However, don’t discount Hasbro’s aggressive film initiatives to keep the spotlight on its brands and the digital initiatives of LeapFrog as it negotiates the new toys and games paradigm of the 21st century.
The article Mattel Is Singing Hello Dolly originally appeared on Fool.com and is written by Michael Ugulini.
Michael Ugulini has no position in any stocks mentioned. The Motley Fool recommends Hasbro, LeapFrog Enterprises (NYSE:LF), and Mattel. The Motley Fool owns shares of Hasbro and LeapFrog Enterprises. Michael is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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