Guest Column: The Disney Channel - Apr 29, 2004

Guest Column: The Disney Channel
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Disney Channel stars are quickly placed in multiple projects throughout Disney, from theatrical releases and albums to additional series and movies on Disney Channel. It’s a win-win for everyone involved. The frequent exposure builds the performers’ repertoire and star power, while their built-in base of fans practically guarantees financial success for Disney. It’s not a new concept by any means – Walt Disney exploited it to full advantage with Annette Funicello and Hayley Mills in the 1960s – but never has it been used so extensively or successfully.

There’s Christy Carlson Romano from Kim Possible and Even Stevens, who plays Belle in Disney’s Beauty and the Beast musical on Broadway. Raven stars in the upcoming Disney film All-American Girl, and her first solo album for Disney is on the way, following the lead of Hilary Duff, whose debut album on Disney’s Buena Vista/Hollywood Records was the eighth highest-selling album in the US last year, easily making her Disney’s most successful music act in recent memory, if not the first.

The only Disney Channel star bigger than Hilary Duff may be the character she made famous, Lizzie McGuire, who’s become the poster child for the success of Disney Channel franchises. It started with the series, which spawned the hit series soundtrack, the hit movie, the hit movie’s chart-topping soundtrack and the best-selling DVD releases. Kim Possible has gotten in on the action with a soundtrack, a movie on Disney Channel, DVDs, and a live-action film in the works. Raven is set to follow suit, starting with a soundtrack this spring.

And then there’s the merchandise. From books and dolls to clothes and video games, Kim Possible and Lizzie McGuire merchandise has been turning up everywhere in the past two years, with expanding product lines at stores like Toys “R�? Us and Wal-Mart. It’s a growing opportunity that Disney’s only begun to tap into, yet the results are already impressive. There’s the Lizzie McGuire books that have sold more than two million copies since spring 2002, and the line of Kim Possible merchandise that debuted at Wal-Mart last summer, quickly matching sales of merchandise from Finding Nemo. Andy Mooney, Disney’s head of Consumer Products, has already estimated that one day more than half of all Disney merchandise will be based on Disney Channel characters.

It all underscores one of Disney Channel’s most remarkable strengths – it’s supporting Disney through nearly every segment of the company. And that doesn’t include the money Disney Channel is making on its own.

Even without the traditional advertising of other networks, Disney Channel is pumping a ton of cash into the company. How are they doing it? If Disney Channel is in your home, your household is likely paying around 74 cents a month for it as part of your cable or satellite bill. Multiply that by 12 months and 84 million households, throw in paid sponsorships on Disney Channel by companies like McDonald’s and Dannon, along with the network’s carefully-leashed programming budget, and it’s easy to see why Disney Channel is Disney’s most profitable network outside of ESPN. It’s a well-run operation that’s lining Mickey’s pockets with loads of cash, and that’s awesome.

But here’s the best part of all: Disney Channel is also raising up the next generation of Disney fans. We’re talking millions and millions of kids growing up watching Disney Channel who think Disney is really cool. And with every new hit, franchise and star launched at the network, Disney continues to gain new loyal young fans, more than ever before. That is such an exciting thing to witness. Someday these kids will be growing up and bringing their own kids to Disney Channel, but in the meantime, there’s more to come.

Over a dozen new animated and live-action projects are on tap for Disney Channel in the next year, including new shows like Phil of the Future and American Dragon: Jake Long, while hot new Disney Channel stars like Ricky Ullman are waiting to emerge. And the network continues its expansion to new destinations around the world -- India appears to be next on the radar. These are truly exciting times at Disney Channel, and the fun is just beginning.

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-- Matthew
-- Posted April 29, 2004

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