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

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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