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Technology Stocks : THQ,Inc. (THQI)

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To: AreWeThereYet who wrote (8578)11/16/1998 12:50:00 AM
From: Marc Newman  Read Replies (1) of 14266
 
A lot of good channel checks over on the MF board lately. (Btw, Revenge was featured in the CompUSA Sunday flier today. They've expanded their console selection dramatically for Christmas.) One nice aspect is that people are asking clerks about Rugrats and there is a great deal of interest. Parents keep asking when the game is coming in. There are even some full sign-up sheets.

With one obvious exception, most of us have probably been underestimating the potential of this game, particularly since it is on the high-margin PSX side.

I want to share some quotes from the latest issue of Fortune. The article is about Viacom's innovative strategy of spreading its promotional efforts out across each division. So it's not just Nickelodeon pushing the Rugrats movie. It's Simon & Schuster, it's Paramount, even Showtime. This doesn't even count the huge efforts of partners such as Burger King, Lincoln-Mercury, Sony/THQ, etc.

"... check out a very rare thing--an example of a media company coordinating strategy across many different divisions."

8-year-olds recognize Rugrats characters more than they do Bugs Bunny.

Entertainment Tonight is airing numerous segments, VH-1 has a half-hour special, Showtime will replay the special and include info in its mailings to subscribers.

"Nickelodeon is the gold standard for reaching children," sez an ad exec at ad heavyweight Ogilvy & Mather.

"Rugrats isn't another fad like Mighty Morphin' Power Rangers or Teenage Mutant Ninja Turtles. It's a carefully nurtured franchise that's still growing in its eighth year, a time when most TV shows wilt."

"Combine the film's built-in audience with good buzz among industry insiders, and you've got a movie that could gross $100 million or more at box offices worldwide (Rugrats is also a big hit in England and Australia)."

"Once Rugrats moves to video, it will generate millions in sales and rentals for Paramount's home-video division and for Blockbuster, Viacom's video chain. Finally, the movie will end up on Nickelodeon, where it'll be played ad infinitum."

As far as THQ is concerned, Rugrats seems like a sure bet. They've gotten good buzz from gaming sites that have previewed the game and Broderbund is selling tons of Rugrats on cd-rom. Perhaps the best sign that this will be a hit is that both Viacom and THQ are already working on sequels to the initial releases.

Marc
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