HALIFAX and EL SEGUNDO, CA – DHX Media has struck a long-term partnership with toy maker Mattel Inc. for new multi-platform content inspired by popular Mattel brands Bob the Builder, Fireman Sam, Little People and Polly Pocket.
Under the terms of the partnership, DHX Media and Mattel will jointly fund, co-develop and co-produce new episodic, short-form, and long-form content for the Mattel properties, designed for a variety of traditional and digital platforms, reads the news release.
The partnership, which covers multiple revenue streams, takes effect January 1, 2016, though Mattel and DHX will begin creative and strategic collaboration immediately. DHX Distribution will manage global sales of existing and new content for Bob the Builder (pictured), Fireman Sam, Little People and Polly Pocket under the partnership, and DHX Studios will collaborate with Mattel to develop and produce multiple new seasons of content for the properties. Mattel will oversee global brand management and all other lines of business.
“Mattel is a truly iconic company and this deal builds upon DHX’s existing strategies for long-term global growth,” said DHX Media CEO Dana Landry, in Wednesday’s release. “The partnership plays extremely well to our complementary strengths – global content creation and distribution for DHX, and brand management and development for Mattel – and creates an amazing opportunity to amplify these celebrated Mattel franchises throughout the world.”
“Today’s announcement is a major step forward in our ongoing strategy to dramatically accelerate content creation and distribution on a global scale,” added Mattel’s chief content officer Catherine Balsam-Schwaber. “As a recognized leader in kids and family entertainment, DHX is ideally suited to help us maximize content creation and distribution across multiple channels and geographies. Importantly, this relationship also creates the potential for future content, licensing and franchise development collaborations between Mattel and DHX.”
Canaccord Genuity analyst Aravinda Galappatthige said in a research note that the deal “shows us the benefits that are accruing to DHX as a result of their growing strength and profile in content creation and distribution”.
“This arrangement makes sense to us as it allows DHX to leverage Mattel’s strong brand presence using its own strength in content creation and distribution”, he wrote. “This announcement is another step forward for DHX towards strengthening its footprint as a global content creation and distribution company. Furthermore, given the strong reputation of the titles, we expect meaningful contribution on the merchandising and licensing front as well (to complement distribution sales) over time.”
