WEBVTT

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What company created
the most popular doll on earth,

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one of the biggest action
figures of all time

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and sold more cars
than all of Detroit?

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If you said Mattel,
you're right on the ball.

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But how did the
$4.5 billion giant

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become masters of
the toy universe?

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You don't get to Numero UNO

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without a few Wild
Cards along the way.

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Did you know that
the Magic 8-Ball

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was invented by the
son of a clairvoyant,

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and first marketed
as a paper weight.

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- They became a
cultural touchdown,

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a cultural phenomenon.

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Or that one of
Mattel's biggest successes

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was purchased from
an oatmeal company?

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Or that He-Man was born

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because of one of
the biggest missteps

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in the entire toy galaxy.

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- Mattel made a catastrophic...

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What am I trying to say?

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Mattel made a
catastrophic up.

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You may think you know

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all about the toys
that built America,

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but there's more to the story.

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I'm Adam Richmond,

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and this is The Snack
Sized History of Mattel.

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It's 1977 and something
is coming from outer space

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that will change not
just the face of toys,

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but the way toys
are sold forever.

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And Mattel is about to land an
opportunity to get in on it.

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But if they fumble,
they'll be left

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to fill a universe-sized void.

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But before we get to that,

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let's go back to
the very beginning.

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In America, business
and babies are booming.

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And one industry
is ripe to explode,

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toys.

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- That generation that grew
up through the depression,

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went through World War II,

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and had more disposable income.

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And so the toy industry started

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to really blossom and
grow because of that.

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One company wants

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to get in on the
toy craves, Mattel.

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Named for Harold Matson
and Elliot Handler.

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Their company makes
picture frames,

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but they're keen to expand.

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- Elliot come on.

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And it's
Elliott's wife, Ruth,

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that will push Mattel
to the next level.

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When Harold resigns
due to health issues,

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Ruth steps up to take his place.

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- It was Ruth, absolutely,
running the company.

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And of course at that time,

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women were not
running companies,

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much less a
manufacturing company.

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Mattel has plenty of
scrap material laying around,

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and realizes they can use it
to make doll house furniture.

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When the dollhouse
furniture takes off,

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they decide to go all
in on the toy business.

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Eager to push the envelope,

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they embrace the latest
craze in materials, plastic.

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- When injection molding
and plastic came along,

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toys can be produced
faster, cheaper,

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and a bigger variety of colors.

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They release a
string of plastic toys,

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including the Birdy
Bank, a plastic piano,

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and the popular burp gun.

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Adjust to movable site,

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and you're ready to fire again.

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But it's a plastic
ukulele called the Uke-A-Doodle,

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which gives Mattel their
first real taste of success,

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and Ruth Handler isn't
about to let it slip away.

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She wants to find
the next big thing.

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And based on her own daughter,

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she knows that the only dolls

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on the market are paper dolls,

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or baby dolls designed for girls

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to play housewife or mommy.

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Ruth wants to make
a doll for girls

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that will show them
they have choices.

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On a family trip to Switzerland,

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Ruth finds inspiration in the
form of the Bild Lilli doll

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- Lilli was not a
very moral girl.

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- She was really a very
sassy seductive call girl.

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Bild Lilli was invented
more as a novelty for men.

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But she brings
back a Bild Lilli doll

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to Mattel's design team.

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- What do you think?

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- Cute.

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Despite
plenty of naysayers,

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including her own husband.

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- Ruth, no mother is
gonna buy her daughter

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a doll with breasts.

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- Ruth was a trailblazer,

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and she wouldn't accept that.

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- They hadn't made a
doll in that size before,

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and then you have
to sew the clothes.

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So all of that was
very expensive,

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and it was a tremendous risk

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for them to take at the time.

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But when the buyers
meet Barbie, there's a problem.

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- You're out of your mind.

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It's the 1950s,

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which looks like this.

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- They didn't think Barbie
was a fitting role model.

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She wasn't a mother.

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She didn't have children.

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She was Barbie. She was herself.

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Toy stores want
nothing to do with Barbie,

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so Mattel brings their
new doll to the new media.

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They market Barbie,
not just as a doll,

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but as having a life of her own.

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- The genius of Barbie

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is that Barbie was really
not a one-time purchase.

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So if Barbie is a cheerleader,
she needs pompoms.

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If Barbie has a dream house,

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she'll need all the stuff
that goes in the dream house.

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Over the
next five years,

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Barbie gets a fan club, a car,

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an array of careers,

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and a doting boyfriend.

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Mattel is the number one
toy company in the country,

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but they're neglecting a whole
other half of the market,

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boys.

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- As the number one toy company,

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the challenge is to
stay at number one.

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And one competitor
is ready to pounce, Hasbro.

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Mattel's Barbie
success inspires Hasbro

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to make a doll of
their very own.

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- Let's not call it a doll.

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Okay. So what
should we call it?

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- It's an action figure.

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And his name is...

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G. I. Joe

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G. I. Joe

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Fighting man
from head to toe

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He's the world's
first action figure,

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and his first year of sales
brings in $23 million,

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about $189 million today,

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making Hasbro number two

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right on the heels of Mattel.

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To stay number one,

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Mattel will need to take
back the boy's market.

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But this new competition is
just the tip of the iceberg.

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There is a whole other
universe out there

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they can't even see yet.

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But first, a snack sized quiz.

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Mattel is the proud owner
of the iconic Magic 8-Ball,

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but why was it modeled
after a billiards ball?

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Is it to promote a
billiards company,

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because eight is
considered a lucky number,

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because eight looks
like an infinity symbol,

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or because its

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inventor loved pool?

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So, why was the Magic

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8-Ball an eight ball?

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To promote a billiards company.

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Prior to being an eight ball,

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the fortune telling device
was actually a crystal ball,

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but after doing a tie in

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with the Chicago
Billiards Company in 1950,

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sales boomed and
the design stuck.

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Mattel is the number one
toy company in the US,

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with sales totalling
over $85 million,

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thanks to little girls
and Barbie.

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But Mattel has missed the
boat on the boys toy market,

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which now belongs to Hasbro

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and their action
figure "G. I. Joe."

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And they're not the only company

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hitting Mattel where it hurts.

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Another new sensation
comes from across the pond,

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Matchbox, makers of
tiny, realistic toy cars.

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- There were quite unique
because they were so small.

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They fit in a matchbox
hence their name.

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When Elliot
Handler sees his grandson

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playing with a Matchbox car,

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he notices a weakness.

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- Is that as fast as it goes?

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Elliot believes
Mattel could do better

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and decides to make a
rival line of toy cars.

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Elliot turns to longtime
Mattel employee, Jack Ryan.

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No, not this Jack Ryan.

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Our Ryan is an engineer

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whose previous job was designing
missiles for the military,

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a job that also
helped him design

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- Cute.

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And now his mission

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is to do the same for a toy car.

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- Three,

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two,

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one.

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The piéce de résistance

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is a flaming orange
loop to loop race track.

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In 1968, the toy cars
make their debut,

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and they're called Hot Wheels.

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Hot Wheels become the best
selling toy car in the world.

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But little does Mattel know
they're headed for a crash.

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A Mattel plant is
destroyed by fire in 1970,

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and millions of dollars
of inventory are lost.

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Then a shipyard strike
cuts off any hope

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of re-establishing
their supply chain.

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And it all goes down
during a time of year

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that makes or breaks
a toy company,

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the holiday season.

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- In the 1970s, we did
not have online shopping.

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The product had to
be on the shelf,

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and that was the
problem they faced.

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Yet somehow,
Mattel's profits

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and their stock price are
reported to be as high as ever.

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Could it be too good to be true?

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Yep.

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- Mattel was now under fire

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from the Securities
and Exchange Commission

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for falsifying some
of it's accounting,

00:09:26.513 --> 00:09:28.848
making things look rosier
than they really were.

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It all went back
to Ruth Handler.

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In 1975. Ruth is
indicted on securities fraud.

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- She decides to
plead nolo contendere,

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which means no contest.

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Luckily for her, she had a judge

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who gave her community
service and a fine.

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Ruth and Elliot resign

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from the company they created.

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Without their visionaries,
Mattel is left to drift.

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And though they go through
some growing pains,

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including the growing
up Skipper doll.

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When you turn her arm,

00:10:08.472 --> 00:10:10.056
you can make her
change instantly

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from a little girl to a
tall slender teenage doll.

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Yup, it's a
doll that grows breasts.

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- And I suspect

00:10:17.806 --> 00:10:19.723
that it was thought
up by a lot of guys.

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It really was one of
those glorious missteps

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that happened every
once in a while.

00:10:24.154 --> 00:10:28.565
But their biggest
misstep might come in 1977.

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Matilda's approach to
make action figures

00:10:30.485 --> 00:10:31.661
for an upcoming film,

00:10:31.745 --> 00:10:33.829
but it's about weird
space creatures,

00:10:33.914 --> 00:10:35.656
and comes from an
unknown director.

00:10:35.740 --> 00:10:37.074
So, Mattel decides to pass

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On one of the biggest films,

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not just of this
century, but the next.

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- It was really the
first hugely, hugely

00:10:48.086 --> 00:10:50.421
successful toy line
based on a movie.

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Like the movie
"The Action Figures"

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made by another toy
company named Kenner,

00:10:54.851 --> 00:10:59.271
are a runaway hit, making
over $100 million in revenue.

00:10:59.431 --> 00:11:02.766
- Mattel made a catastrophic...

00:11:02.859 --> 00:11:04.017
What am I trying to say?

00:11:04.111 --> 00:11:06.112
Mattel made a
catastrophic up.

00:11:06.196 --> 00:11:08.105
Mattel attempts
to find a franchise

00:11:08.189 --> 00:11:09.782
to compete with "Star Wars."

00:11:09.941 --> 00:11:12.359
They hemorrhage
money to do tie-ins

00:11:12.444 --> 00:11:14.370
with Battlestar Galactica,

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Clash of the Titans,

00:11:16.206 --> 00:11:17.289
and Flash Gordon.

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All of which tank.

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"Star Wars" is a force that
no one can reckon with.

00:11:25.290 --> 00:11:27.541
So how will Mattel find...

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The power!

00:11:30.554 --> 00:11:32.963
But first, a snack sized quiz.

00:11:33.047 --> 00:11:36.967
What is the best selling
Barbie doll of all time?

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Princess Diana Barbie,

00:11:38.887 --> 00:11:40.804
Totally Hair Barbie,

00:11:40.897 --> 00:11:42.389
Malibu Barbie,

00:11:42.482 --> 00:11:45.067
or Barbie and the Rockers?

00:11:53.067 --> 00:11:53.817
So what's the best

00:11:53.902 --> 00:11:55.077
selling Barbie of all time?

00:11:57.405 --> 00:11:59.406
Totally Hair Barbie.

00:11:59.499 --> 00:12:01.742
With the longest hair
ever on a Barbie,

00:12:01.835 --> 00:12:04.170
the doll sold over
10 million units

00:12:04.254 --> 00:12:06.997
between 1992 and 1995.

00:12:07.081 --> 00:12:08.507
She was so popular,

00:12:08.592 --> 00:12:12.344
Mattel released a 25th
Anniversary Edition in 2017.

00:12:12.597 --> 00:12:14.673
It's the 1980s

00:12:14.766 --> 00:12:18.844
and "Star Wars" has Mattel
trying to find an action figure

00:12:18.937 --> 00:12:23.691
to make a dent in a market
dominated by Jedis.

00:12:25.351 --> 00:12:27.278
At a loss for what to try next,

00:12:27.362 --> 00:12:30.605
Mattel turns to the one
group they hope can show them

00:12:30.699 --> 00:12:33.859
how to fight the
force, little boys.

00:12:33.952 --> 00:12:35.536
Through market research,

00:12:35.620 --> 00:12:38.789
they find boys repeat one word
over and over when playing.

00:12:42.627 --> 00:12:44.619
And according to
those focus groups,

00:12:44.713 --> 00:12:47.965
power looks something like this.

00:12:48.049 --> 00:12:50.801
- There was a bodybuilding
craze in the 1980s,

00:12:50.885 --> 00:12:53.137
Arnold Schwartzenegger,
Lou Ferrigno,

00:12:53.296 --> 00:12:55.964
and all those guys in
the bodybuilding genre

00:12:56.049 --> 00:12:58.726
that really gave off
this positive attitude.

00:13:01.563 --> 00:13:03.480
So Mattel
designers bulk up

00:13:03.639 --> 00:13:05.899
some action figures
they have lying around,

00:13:06.059 --> 00:13:08.477
molding huge muscles from clay.

00:13:08.570 --> 00:13:12.239
And at long last,
they've got a prototype,

00:13:12.324 --> 00:13:15.492
and after a little
finesse, a final product,

00:13:15.651 --> 00:13:18.245
and an ad introduces
him to the world.

00:13:18.330 --> 00:13:19.580
- Here's He-Man,

00:13:19.739 --> 00:13:21.740
the most powerful
man in the universe.

00:13:21.833 --> 00:13:23.834
Now, I have the power.

00:13:23.993 --> 00:13:26.003
But retailers
aren't yet convinced.

00:13:26.162 --> 00:13:29.423
Without a story as big as
the "Star Wars" movies,

00:13:29.582 --> 00:13:31.258
how can these toys compete?

00:13:31.417 --> 00:13:34.094
So Mattel approaches Filmation,

00:13:35.505 --> 00:13:38.015
a company behind some of
the most iconic cartoons

00:13:38.174 --> 00:13:41.176
of the 70s and 80s,
including "Mighty Mouse,"

00:13:41.269 --> 00:13:43.187
"Fat Albert and the Cosby Kids,"

00:13:43.346 --> 00:13:45.606
and "Star Trek: The
Animated Series."

00:13:45.690 --> 00:13:48.359
And after a year of
development, comes...

00:13:48.518 --> 00:13:49.777
He-Man

00:13:49.948 --> 00:13:51.699
A lighthearted
alter ego for He-Man,

00:13:51.783 --> 00:13:54.201
named Prince Adam is born,

00:13:54.360 --> 00:13:56.695
along with some TV
friendly sidekicks

00:13:56.779 --> 00:13:58.956
who all live on Planet Eternia.

00:14:00.959 --> 00:14:02.626
- He-Man was revolutionary

00:14:02.711 --> 00:14:06.038
in the fact that the toys were
the impetus for the cartoon.

00:14:06.122 --> 00:14:08.382
"He-Man and the
Masters of the Universe"

00:14:08.541 --> 00:14:12.044
becomes the highest rated
kid show in America,

00:14:12.137 --> 00:14:15.047
and Mattel rakes in $100 million

00:14:15.140 --> 00:14:18.142
in toys and licensing by 1983.

00:14:20.887 --> 00:14:25.057
In 1987, Mattel takes
He-Man to the big screen

00:14:25.141 --> 00:14:27.151
with a live action star studded

00:14:27.235 --> 00:14:29.153
"Masters of the Universe" movie.

00:14:31.147 --> 00:14:33.065
It's got all the
sure fire ingredients

00:14:33.149 --> 00:14:36.160
to make it a mega
blockbuster hit, right?

00:14:37.579 --> 00:14:38.412
Right?

00:14:39.748 --> 00:14:41.165
- All right, let's talk about

00:14:41.249 --> 00:14:42.750
the "Masters of the
Universe" movie for a second.

00:14:42.909 --> 00:14:45.410
- The film was not true
to the source material.

00:14:45.495 --> 00:14:46.745
- The script didn't work.

00:14:46.829 --> 00:14:48.080
The costumes didn't work.

00:14:48.173 --> 00:14:49.506
- Most of the film took place

00:14:49.666 --> 00:14:51.750
on earth instead of Eternia.

00:14:51.834 --> 00:14:54.670
- Just because a toy line works

00:14:54.754 --> 00:14:56.505
doesn't necessarily
mean emotion picture

00:14:56.598 --> 00:14:58.349
based on the toy line will work.

00:14:58.508 --> 00:14:59.675
The film's failure

00:14:59.759 --> 00:15:02.594
causes a domino effect
for the franchise.

00:15:02.679 --> 00:15:05.272
The cartoon is shuttered
as ratings tank.

00:15:05.431 --> 00:15:08.192
- The toy business is
a fashion business.

00:15:08.351 --> 00:15:09.944
- One day something could be in

00:15:10.103 --> 00:15:12.529
and three months later
it's completely out

00:15:12.689 --> 00:15:13.864
and no one's buying a thing.

00:15:15.617 --> 00:15:17.943
Meanwhile,
their nemesis, Hasbro,

00:15:18.027 --> 00:15:20.862
successfully
relaunches "G. I. Joe,"

00:15:20.947 --> 00:15:25.459
and finds a $115 million
mega hit franchise

00:15:25.543 --> 00:15:26.702
in "Transformers."

00:15:26.795 --> 00:15:29.621
And by 1991, Hasbro has acquired

00:15:29.706 --> 00:15:33.050
board game giants, Milton
Bradley and Parker Brothers,

00:15:33.134 --> 00:15:37.471
leaving them with a veritable
monopoly in the game space,

00:15:37.630 --> 00:15:40.641
making Hasbro the number one
toy company in the country.

00:15:42.969 --> 00:15:45.562
Desperate to find a way
back to their top spot,

00:15:45.647 --> 00:15:48.056
Mattel establishes
a games division,

00:15:48.149 --> 00:15:51.393
but they won't stand a chance
unless they find a hit.

00:15:51.486 --> 00:15:56.323
Are they too late, or can
they still find the one?

00:15:57.909 --> 00:16:00.569
But first, a snack sized quiz.

00:16:00.662 --> 00:16:03.414
In the 1980s, Mattel made
toys to try to cash in

00:16:03.498 --> 00:16:05.916
on the popularity of
the movie "Gremlins."

00:16:06.001 --> 00:16:08.168
What were they called?

00:16:08.327 --> 00:16:09.336
Critters,

00:16:09.495 --> 00:16:10.504
Ghoulies,

00:16:10.663 --> 00:16:11.922
Boglins,

00:16:12.007 --> 00:16:13.757
or Squanchers?

00:16:22.684 --> 00:16:23.925
So what were Mattel's

00:16:24.019 --> 00:16:25.477
imitation "Gremlins" known as?

00:16:27.180 --> 00:16:28.680
Boglins.

00:16:28.765 --> 00:16:30.107
The creature feature craze

00:16:30.191 --> 00:16:32.526
inspired Mattel
to sell "Boglins."

00:16:32.610 --> 00:16:36.363
The puppet toys were advertised
as "Creepy Swamp Goblins."

00:16:36.522 --> 00:16:38.198
Although they never
got their own movie,

00:16:38.283 --> 00:16:40.192
the toys were
designed by an alum

00:16:40.276 --> 00:16:42.194
of the Jim Henson Company.

00:16:42.278 --> 00:16:45.122
In 1990, Mattel is no longer

00:16:45.206 --> 00:16:47.124
the number one toy
company in America.

00:16:47.208 --> 00:16:51.453
That title now belongs to
their fiercest rival, Hasbro.

00:16:51.546 --> 00:16:54.798
Hasbro's acquisition of Milton
Bradley and Parker Brothers

00:16:54.957 --> 00:16:55.966
helped them over the top.

00:16:56.125 --> 00:16:57.801
- Hasbro essentially controlled

00:16:57.960 --> 00:17:00.387
the entire board game industry.

00:17:00.472 --> 00:17:03.474
But there's one
now iconic game they missed,

00:17:03.633 --> 00:17:06.310
a sleeper hit called UNO.

00:17:06.469 --> 00:17:08.470
So where did it come from?

00:17:08.554 --> 00:17:10.806
The game was invented in 1971

00:17:10.890 --> 00:17:12.900
by a man named Merle Robbins,

00:17:13.059 --> 00:17:15.227
as a solution to an
argument with his son

00:17:15.320 --> 00:17:17.395
around the of "Crazy Eights."

00:17:17.489 --> 00:17:19.564
Robbins sells it out
of his barbershop,

00:17:19.657 --> 00:17:21.483
and soon, across the country.

00:17:21.567 --> 00:17:24.995
By 1972, it's bought
by International Games

00:17:25.080 --> 00:17:27.831
who add a bold red and
black color scheme.

00:17:27.916 --> 00:17:30.834
By 1991, UNOs got
Mattel's attention

00:17:30.919 --> 00:17:34.421
with over 87 million decks sold.

00:17:34.506 --> 00:17:36.414
But if Mattel wants UNO,

00:17:36.508 --> 00:17:38.926
they'll have to play
their cards right.

00:17:39.010 --> 00:17:42.838
International Games has turned
down multiple bids for UNO,

00:17:42.922 --> 00:17:44.848
but Mattel wins with their offer

00:17:45.007 --> 00:17:49.770
to acquire the entire company
for an undisclosed amount.

00:17:50.357 --> 00:17:52.099
Riding the success of UNO,

00:17:52.184 --> 00:17:55.102
Mattel sets their sights
on more acquisitions.

00:17:55.195 --> 00:17:57.947
In 1993, they buy Fisher Price

00:17:58.106 --> 00:18:01.284
for $1 billion in
stock from Quaker Oats.

00:18:02.778 --> 00:18:04.445
Yeah, that Quaker Oats.

00:18:04.529 --> 00:18:06.447
And in 1997,

00:18:06.540 --> 00:18:09.584
they buy former rival, Matchbox.

00:18:11.119 --> 00:18:13.454
But with all these new
brands under their belt,

00:18:13.538 --> 00:18:15.381
Mattel might not be
paying enough attention

00:18:15.540 --> 00:18:17.884
to their tried and true Barbie.

00:18:17.982 --> 00:18:22.819
By 2014, Barbie sales
have plummeted 16%.

00:18:23.084 --> 00:18:24.584
The risk pays off,

00:18:24.678 --> 00:18:27.513
Barbie's new shade lands
the cover of Time Magazine,

00:18:27.672 --> 00:18:30.590
and her sales climb
to a five year high.

00:18:30.675 --> 00:18:33.352
- Body confidence
was so important.

00:18:33.436 --> 00:18:35.846
So this was really
the right time.

00:18:35.930 --> 00:18:38.098
But in 2018, Barbie

00:18:38.191 --> 00:18:42.111
and the entire toy industry
are in for another big change,

00:18:42.270 --> 00:18:45.698
their largest retailer,
Toys "R" Us files for bankruptcy.

00:18:47.358 --> 00:18:49.526
If Mattel is going to make
it in the digital age,

00:18:49.610 --> 00:18:52.454
they'll have to figure out
how to capitalize on it.

00:18:52.613 --> 00:18:54.698
- Mattel really understood

00:18:54.791 --> 00:18:57.376
how important content
was going to be

00:18:57.460 --> 00:18:59.286
to engage children
in the stories.

00:18:59.370 --> 00:19:00.871
Mattel dives headlong

00:19:00.964 --> 00:19:02.965
into mobile apps
and entertainment

00:19:03.049 --> 00:19:04.791
with hit shows based on brands

00:19:04.876 --> 00:19:06.468
like "Thomas, the Tank Engine,"

00:19:06.553 --> 00:19:08.804
"Polly Pocket," and "Barbie."

00:19:08.888 --> 00:19:11.298
- Companies were starting to
look within their company,

00:19:11.382 --> 00:19:13.642
to go, "Why don't we
just use what we have?"

00:19:13.727 --> 00:19:15.469
And so that saves
them a lot of money.

00:19:15.553 --> 00:19:17.804
It gives their product
way more visibility,

00:19:17.889 --> 00:19:19.732
and it gives them an
opportunity yet again,

00:19:19.816 --> 00:19:21.391
to sell more toys.

00:19:21.476 --> 00:19:23.736
Mattel even reboots
"Masters of the Universe"

00:19:23.820 --> 00:19:25.738
in the fall of 2021.

00:19:25.897 --> 00:19:28.432
- These have been toys
that have created memories

00:19:28.577 --> 00:19:31.070
From their early
days as picture frame makers

00:19:31.154 --> 00:19:34.165
to Barbies world and
mastering the universe,

00:19:34.324 --> 00:19:39.003
Mattel has sold billions of
toys in over 100 countries.

00:19:39.088 --> 00:19:40.663
- And you asked
somebody about them,

00:19:40.747 --> 00:19:43.249
and they light up because
they remember those toys,

00:19:43.333 --> 00:19:45.668
they were part of their
formative childhoods.