Potter's Field
When Warner Bros. announced it was moving the sixth Harry Potter film from November 2008 to July 2009, the official explanation was that the writers strike had left gaps in the studio’s summer 2009 lineup. Potter, already completed, could be moved. And Warner could easily afford to wait, given the box office success of The Dark Knight, a film that took in $158 million in its first weekend alone. Not all of the businesses that depend on sales of Potter-related merchandise (especially during the all-important holiday shopping season) were in the same position, though. Some manufacturers were forced to halt or redirect shipments of items like lightup wands and scarves, while retailers had to rethink marketing plans. All had to adjust their revenue expectations for 2008. We survey the damage.
Revenue delayed: about $250,000
This costume maker produces more than 30 Potter accessories, from hats to Quidditch goggles. In years when one of the books or films is released, sales of Potter-related merchandise can quadruple. In July 2007, the month Harry Potter and the Order of the Phoenix came out, Elope sold 4,000 Sorting Hats, up from less than 1,000 in July 2006. Sales manager Kelli Borel says retailers have scaled back orders since the announcement.
Revenue delayed: about $120 million
For each of the past five Potter films, Electronic Arts has created a matching videogame. This year, the release was to be Half-Blood Prince, featuring original content from the new film. But now the company is resetting its marketing strategy and plans to record the revenue in fiscal year 2010. “We are disappointed we won’t have a game for fans this fall,” says Trudy Muller, senior director of public relations.
Revenue delayed: about $29 million
With more than 4,700 screens, Cinemark is the U.S.’s third-largest theater chain. Like its competitors, the company relies on Potter films to sell tickets—and con-cessions. In the same quarter Order of the Phoenix opened (it was the seventh-highest-grossing film ever), Cinemark’s box office sales jumped 73 percent and concessions 60 percent. The company also attributes the growth to an acquisition.
Revenue delayed: about $117,000
The Harry Potter boutique at F.A.O. Schwarz’s flagship store has been popular year-round since its opening in July 2007, but there is a downside: When the movies leave theaters, some products’ sales dip accordingly. Wand sales, for example, were 41 percent lower in July 2008 than in July 2007, when Phoenix was released. The chain’s Potter investments, says C.E.O. Edward Schmults, are “going to go down the sinks for this holiday season.”
Revenue delayed: about $60 million
Scholastic, the U.S. publisher of the Potter books, doesn’t have a formal partnership with Warner Bros. But in years when a film and novel are paired for simultaneous release, sales of the book can reach upwards of $200 million. Without a new book or movie, Scholastic’s Potter sales stop at about $20 million. A spokeswoman doubts the delay of the movie will impact sales, since Scholastic is releasing another J.K. Rowling novel.





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