EXCLUSIVE: Hasbro’s reshaping of eOne continues with multiple sources telling us that the latter will cease theatrical operations in the UK.
There will be staff reductions in the UK, which were factored into the cuts we’ve reported on in recent months. Hasbro’s cost-cutting plan, announced in January, involves shedding 15% of the company’s global workforce this year, or about 1,000 positions.
Hasbro declined to comment on the move to end UK theatrical.
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This is the latest bitter pill to swallow in a UK market whose distribution landscape has been hammered in recent years.
Hit by Covid and inflation, as well as grappling with shifting viewing habits and strain on infrastructure, the sector hasn’t yet recovered to pre-pandemic levels. Last year, box office was almost 30% down from a few years ago and polarisation increased to its highest level in more than a decade with the top 20 movies accounting for 64% of the total box office. The top 34 movies all came from the five major U.S. theatrical studios.
Not too long ago, the UK distribution scene was competitive and relatively diverse, but at markets now many international sellers tell us they barely factor the UK into their sales estimates because it has become so challenged.
eOne’s demise is a case in point. Less than a decade ago, the company was theatrically releasing 35 films a year in the UK, many of them sizeable studio and indie fare. After huge success with the Twilight franchise, the company saw more big gains for Oscar winners such as 12 Years A Slave, Arrival and Spotlight. Just three years ago, the company scored its biggest ever success in the territory with Oscar winner 1917, which took $57M.
But last year, eOne released only four movies theatrically, including The Woman King, while this year it has only managed three movies and has none on the horizon. Among this year’s releases were The Fabelmans, which took $4M, and Dungeons & Dragons: Honor Among Thieves, which took $17M. Neither ignited with audiences.
The backdrop in the UK is stark. Embattled cinema chain operator Cineworld Group last month filed for administration in the territory and suspended trading on the London Stock Exchange as part of a restructuring plan to reduce massive debt. Fellow cinema chain Empire Cinemas is also entering administration and looking to sell multiple sites. Meanwhile, arthouse and independent cinema is increasingly under pressure.
eOne maintains a UK TV and home ent presence but it’s not clear for how much longer. Managing Director in the territory is Kezia Williams who remains in place. We hear the lease is up soon on the central London office and that local staff aren’t expecting it to be renewed.
The changes at eOne UK come as Hasbro looks to sell off most of the company’s global film and TV assets (Hasbro is holding onto the family brands division housing Peppa Pig and PJ Masks). As we revealed earlier this week, Lionsgate is in poll position to take over what remains of the company.
Hasbro bought eOne in 2019 for $4BN but it has been a struggle since then for the Canadian firm. At that stage, the company was divided into three divisions: music, which has been sold; family brands, which Hasbro has rolled into its brands licensing and merchandising operation; and film and TV. Hasbro previously sold eOne’s music business to private equity firm Blackstone in 2021 for $385 million.
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