Hannah Montana Brand At Risk With Wal-Mart? (DIS, WMT)

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By Douglas A. McIntyre Published
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A report from the USA Today last night put Wal-Mart Stores (NYSE: WMT) in a partnership with Disney (NYSE: DIS) whereby Wal-Mart will sell more than 140 products based on Disney’s famed Hannah Montana teen and child craze.

If you have ever read any of the financial aspects behind the Hannah Montana franchise for Disney, the numbers are pretty big.  If this is 140 products or 500 products, it won’t make a difference individually to Wal-Mart because of its endless product line-up and its near-$100 Billion in quarterly sales.  Disney does over $8 Billion per quarter in revenues. 

This Hannah Montana has been reported as not just having sold out shows, but one where parents are pulling teeth out and paying in some cases ridiculous sums of cash to get concert tickets.  Wal-Mart isn’t exactly known for brand-luxury even if it is roughly 10% of U.S. retail spending.  Disney better hope this doesn’t dilute the franchise too much.  Maybe it already sees an end coming to this craze.

Why does this feel like another teen star or craze is being set up for a future version of "Where Are They Now?"

Jon C. Ogg
January 30, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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