Tracy Lapa
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High School Musical 2: Can Disney (DIS) repeat success?

Posted Aug 16th 2007 8:30PM by Tracy Lapa (RSS feed)
Filed under: Television, Walt Disney (DIS), Film

The Disney (NYSE: DIS) Channel original movie High School Musical turned out to be nothing less than a gold mine. The musical phenomenon -- a perfect balance of innocence and coolness -- has been seen by roughly 160 million people, according to Disney. It has generated $500 million in sales of DVDs, soundtracks (it was the top-selling album last year) and other retail items. A subsequent concert tour, stage version, and ice show are also bringing in the dough, and the movie has inspired real-life high school musical productions numbering in the thousands.

Will the sequel live up its growing giant of a predecessor?

The sequel is "a scootch more mature," Disney Channel Worldwide entertainment chief Gary Marsh says. But that's not likely to affect viewership, since the film fundamentally seems to fit in with the big cultural picture: "It keys into the popularity of music and dance that's sweeping the country with shows like So You Think You Can Dance, Dancing With the Stars and American Idol," says Neil Meron, producer of the new movie musical Hairspray.

According to USA Today, word on the street is that many analysts are expecting HSM2 to match or exceed the premiere ratings of the original. The song "What Time Is It?" from the sequel was released in May and holds a top 50 spot on iTunes' Top 100 Songs list, and a music video for the song was released in June. It is also the first Disney Channel original movie to run commercials on ABC (a Disney property).

High School Musical 2 debuted on Disney on Demand via Cablevision (NYSE: CVC)'s digital iO service and Verizon (NYSE: VZ)'s FiOS TV last Friday, a week earlier than The Disney Channel premiere August 17th. Interesting move Disney.

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Will Miley Cyrus last as Disney's (DIS) new teen queen?

Posted Aug 10th 2007 4:33PM by Tracy Lapa (RSS feed)
Filed under: Consumer Experience, Television, Walt Disney (DIS)

It doesn't seem that long ago that Hilary Duff was The The Walt Disney Company (NYSE: DIS) Channel's shining -- well more like blinding -- star. Hilary had it all: talent, looks, and an innocence that emanates only from Disney Channel stars. But once Duff's 65-episode Disney series Lizzie McGuire peaked in 2001, she went on to other things, including a 2003 album that reached No. 1 on the Billboard 200 (the project sold 3.7 million copies), an Elizabeth Arden fragrance, a clothing line, and another album that debuted earlier this year. What that meant for Disney was that Hilary was out. It didn't take long for someone else to move in -- Miley Cyrus.

You're probably wondering why that name sounds so familiar. Well, it's because Miley Cyrus is the daughter of country singer Billy Ray Cyrus, best known for his top 40 hit "Achy Breaky Heart." Not only are both father and daughter singers, but they are also actors and show off both of their talents, together, on Disney Channel's new hit show Hannah Montana. The show premiered with 5.5 million viewers and 2.3 million tweens (kids 9-14) and became basic cable's top series in the tween demo in its first seven weeks. On the show, Miley plays a teenager trying to lead a normal life while hiding her secret, alter-ego rock star persona Hannah Montana from her classmates. Billy Ray plays her father (you can't get anymore true-to-life than that).

How are Miley and Hannah doing? According to Fortune, "The Disney Channel Hannah Montana series hasn't just been a huge hit with kids and 'tweens; it's become a ubiquitous franchise." The 2006 Hannah Montana soundtrack entered the Billboard 200 at No. 1 and has gone double platinum, with 2.2 million copies sold since October. Hannah clothes are already the No. 1 tween brand at Macy's, and her new double-CD set that serves as a soundtrack and showcase for the actress, Hannah Montana 2: Meet Miley Cyrus, has outsold American Idol winner Kelly Clarkson's new album, both released June 26, by 34,000 copies.

As if that isn't enough for a 14-year-old, Miley's The Best of Both Worlds tour kicks off October 18 and features songs that showcase Miley Cyrus as an artist as well as Hannah Montana. This best of both worlds concept seems to be a smart move for a budding star, since she is establishing her career as a solo artist (Miley Cyrus) as well as a Disney star (Hannah Montana). In a few years, she may be able to drop the whole Hannah persona and continue a singer/actress career as Miley. But for the time being, It makes you wonder if there will be any room in toy and department stores for anything without the Hannah brand-stamp come holidays. Looks like Disney Channel has become nothing more than Miley's kingdom.

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Cabela's Inc. (CAB) earnings hike stock 16% higher

Posted Aug 3rd 2007 2:28PM by Tracy Lapa (RSS feed)
Filed under: Major Movement

Starting a business is tough enough, but achieving success in the outdoor industry is a real challenge since business comes and goes with the seasons.

Cabela's Inc. (NYSE: CAB), which makes hunting, fishing and outdoor gear hailed victory during Friday morning's trading, when shares soared $3.23 higher, gaining more than 15%.

Cabela's 52-week high was surpassed during earlier sessions, with shares trading as a high as $28.80. There's no doubt the rise in shares is a result of Cabela's 34% profit jump in the second quarter.

The retailer reported profit of $11.3 million on revenue of $451.2 million, against last year's second-quarter profit of $8.4 million on revenue of $387.3 million.

Shortly after 2 p.m., Cabela's shares were trading at $24.20, $3.46 higher than Thursday's $20.74 close.

The Nebraska-based company strategically opens up shop in areas such as Hazelwood, Missouri, and Greenwood, Indiana, zeroing in on their target customers to bring in revenue. According to Dennis Highby, Cabela's president and chief executive officer, Cabela's is scheduled to open seven new stores by the end of 2007. Sound risky? Never fear -- for the outdoor industry, peak selling season is here.

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Major mover: Dolan Media Company (DM) jumps in debut

Posted Aug 2nd 2007 3:12PM by Tracy Lapa (RSS feed)
Filed under: Major Movement, Initial Public Offerings

Dolan Media Company (NYSE: DM) saw a staggering surge of more than 20% in its market debut Thursday. Shortly before 3:30 p.m., Dolan shares were fetching $17.55, gaining more than $3 from its $14.50 offering price and beating expectations that topped out at $15.50. The offering totaled 13.5 million shares, 3 million more shares than expected.

Dolan Media Company is a Minneapolis- based business news publisher operating numerous print and online publications circulating mainly throughout the East Coast and Midwest . The company also provides many different business services for law firms, financial and real estate markets. Dolan Media was founded in 1992 by Jim Dolan and Cherry Tree Investments.

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Zac Efron is a doll -- literally

Posted Jul 23rd 2007 4:30PM by Tracy Lapa (RSS feed)
Filed under: Marketing and Advertising, Walt Disney (DIS), Film

Zac Efron has been turned into a plastic doll. Not only Zac Efron, but all the leads from the new film Hairspray. At this point, two questions probably come to mind:

1. Who is Zac Efron?
2. Why does he matter?

If you can already answer either of these questions, you are either one of the 100 million people who have seen the Disney (NYSE: DIS) film High School Musical or something HSM-related, or you are one of the millions of people who have heard of the film-turned-Broadway-musical-turned-back-to-film Hairspray, which opened in theaters Friday. What is interesting about Zac Efron is that while his only acknowledgment in the Hairspray trailer is within a list of names trailing the major celebrities, Efron should be a featured star.

If you have never heard of High School Musical, let me get you up to speed. The Disney Channel original movie, featuring Zac Efron and Vanessa Hudgens (a budding superstar with a gold debut album, figured to have earned $2 million last year), has sold over 7 million DVDs. The High School Musical soundtrack was the No. 1 CD last year, selling more than 3.7 million copies. The film was exported to 100 nations, launched an arena tour and "High School Musical: The Ice Tour," and will by followed by the sequel, High School Musical 2, due out this August. This is all, of course, in addition to your licensed merchandise. Yeah, I guess you could call it a franchise.

In essence, High School Musical has become a worldwide brand phenomenon, propelling Zac Efron to the forefront of popularity for a good segment of the population. Hairspray, on the other hand, is really Efron's ticket to breaking out from under Disney and reaching a different, older demographic. It is also rumored that Zac Efron will star in the remake of the musical movie Footloose. Apparently Efron is the go-to guy when it comes to musicals. So, whether or not you've seen or heard Efron, there's a pretty good chance you will sometime in the near future.

It seems like Play Along, a division of Jakks Pacific (NASDAQ: JAKK) and the makers of the 12" inch tall Hairspray dolls, are onto a good thing turning Efron into a collectible. Especially since his role in the film, about which co-star Nikki Blonsky raves, "He just jumps off the screen and right into every girl's heart," undoubtedly contributed to the film's weekend gross of $27.8 million. While loyal Disney kids may or may not see Hairspray, it's likely that their next visit to Toys 'R' Us will result in a quest for the plastic Efron, and now you newly exposed adults will be able to relate to their kids for $14.99 (or a singing version for $20-25).

Maybe Zac Efron is more doll-worthy than we may think.

Tracy Lapa is an AOL Money & Finance intern who recently graduated from the University of Wisconsin-Madison with a B.A. in Communications.

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