Hasbro has gone through a perfect storm, as consumer demand for toys & games shrank drastically since the Covid buying frenzy, while partners reduced the number of movie and television releases (reducing royalty revenues), and license agreements expired without renewal. Meanwhile, Hasbro’s own branded film and TV entertainment portfolio suffered from lower television deliveries, impacted amongst other things by the month-long worker strikes by the Writers Guild of America and the American actors’ union in 2023.
“ - partners reduced the number of movie and television releases (reducing royalty revenues) - “
Is this a hint that Discovery in the hands of Warner had done significant damage to the Hasbro industry related to movies and TV?
In any case, it is known that the contract will expire on March 31, 2025, when G4 rights should be returned to Hasbro, but this seems to be in doubt. Since Warner bought into Discovery, things have gone wrong for Hasbro regarding MLP and others.
Cocks, who took over as CEO, had started a restructuring because it was believed that Hasbro had acquired too much debt - 20% of the workforce had to go. $1 billion gone by 2023 - the worst loss for Hasbro in a very long time. The restructuring work had started before this came. It had then turned out that the investment in the entertainment segment had become too expensive - by happening at the wrong time. Covid and energy inflation knocked everything right down.
Cocks refused to pay for G4 rights because he needs to save money to save Hasbro, since he started “Blueprint 2.0” in October 2022.
So that is why TYT is on the savings budget without knowing if a TYT 3.0 will be ordered, because it is possible that 2.0 could continue well into the next year 2025. And the IDW comics had discontinued the series of G5 comics in favor of only arc series based on TYT design as a consequence. In the worst case, you have to wait until 2026 before a new MYM or a new series will appear, until then you have to have TYT.
An awful lot of mistakes were made regarding the script work on MYM that others now have to work on to bring G5 back on track, and luckily it seems that the current writers associated with TYT and IDW comics are quality conscious that they are working within My Little Pony. They have a lot to hammer out to create a new G5 that can become a world of its own.
The G6 won’t arrive until this decade is over. There is a generation for every decade, so we have five or six years before the G6 will show itself. For Cocks this is excellent as he could just continue with the G5 for many years without having to start over.