Mattel Foresees Over $125 Million in Gross Billings from ‘Barbie‘ Movie in 2023
The ‘Barbie’ movie has provided Mattel with a valuable blueprint for its future endeavors. It has an impressive lineup of 14 live-action films in the pipeline and plans to diversify into additional sectors.
Mattel CEO Ynon Kreiz remarked, “What you witnessed with the Barbie movie was a paradigm, a case study, an opportunity to truly gauge the worth and resonance of our brands, as well as our proficiency in executing these projects both artistically and commercially. We anticipate and aspire to replicate this success, employing the same approach and capitalizing on the highly effective methodology.”
Speaking at the Goldman Sachs Communacopia and Technology conference alongside Mattel CFO Anthony DiSilvestro, Kreiz provided a glimpse into the forthcoming films featuring Mattel intellectual property. These include a Hot Wheels film by J.J. Abrams, a Matchbox car film from Skydance, a Major Matt Mason film starring Tom Hanks, Polly Pocket, spearheaded by Lena Dunham and featuring Lily Collins, Barney in development with Daniel Kaluuya, and a Rock ‘Em Sock ‘Em Robots movie starring Vin Diesel.
Despite an expanding portfolio, Mattel, a prominent toy company, intends to maintain a predominantly “capital-light” stance in its collaboration approach, emphasizing its role as an IP contributor rather than a significant participant.
Nevertheless, Mattel continues to reap substantial benefits from the triumph of the Barbie movie, which has emerged as the highest-grossing film of 2023, generating nearly $1.4 billion worldwide. Mattel’s involvement as the rights holder and producer allows it to share in this success, with the company’s profits escalating in tandem with the film’s triumph, as per DiSilvestro. In 2023, the company anticipates its direct involvement in the movie and associated toys and consumer products will lead to gross billings exceeding $125 million. Furthermore, there are expectations of sustained profits into 2024 and beyond.
This success is helping to counterbalance some of the challenges Mattel is encountering in the retail sector, where retailers are grappling with surplus inventory levels and reduced spending on toys. DiSilvestro also expressed confidence that the company is now in a stronger position concerning inventory levels, heading into the holiday season.
Regardless, Kreiz asserted that the success of the Barbie movie has empowered the company to explore new avenues, even beyond filmmaking.
“The positive market response to the movie’s success has opened up new prospects for Mattel,” Kreiz affirmed. “It has altered the discourse with our partners, not only within the film industry but in other domains. It has indeed spotlighted the strategy and robustness of our portfolio.”
