Carroll said that Mattel is seeking increased control over the growth of its entertainment revenues, and "while the company has historically been a major licensee of entertainment content from such companies as Disney and Nickelodeon, it is now looking toward the successful launch of the Monster High franchise to demonstrate that it, too, has the ability to create a franchise that can become culturally relevant among teen and tween girls."
In a press release, Mattel said that the property will be delivering "rich" content and "relatable" storytelling through publishing, Web, animation and live-action theatrical entertainment, and launching consumer products in toys, apparel and accessories.
While there have been concerns about Mattel's margins due to higher raw material costs, labor, freight and distribution, KeyBanc Capital Markets analysts believe that Mattel should be able to offset them and preserve margins, given that it's implemented low to mid single-digit price increases on the 2010 product lines.
Those analysts believe that Mattel has the ability to further push up prices if input costs continue to rise.
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