Disney's Star Machine

The stage was set for "HSM" a decade ago with Disney's hiring of Anne Sweeney. A former top exec at rival Nickelodeon, Sweeney was charged with remaking the Disney Channel, then a pay-TV service in 18 million homes. Aided by other recruits from Nickelodeon, including the Disney Channel's current top boss, Rich Ross, Sweeney sped up the network's switch to basic cable (87 million U.S. homes now), expanded worldwide, targeted tweens and programmed "kid-driven, family-friendly shows." "Parents can come into the room and not be embarrassed" by what the kids are watching, says Sweeney, now boss of Disney's overall television business, including Disney Channel and ABC.

Around 2001, the strategy began to take hold with a string of new series. Among them: "Even Stevens," "Kim Possible" and the flagship show "Lizzie McGuire," starring Hilary Duff. Later, "That's So Raven," starring Raven Symone, became the channel's highest-rated hit. The current lineup includes "Hannah Montana" and "The Suite Life of Zack & Cody."

But Disney also realized it was missing out on a big piece of the pie that was a natural for its audience. By airing concerts, it was helping launch music acts with no Disney affiliation, including Backstreet Boys and LeAnn Rimes, into superstardom. "People said, 'My God, look at all those stars'," recalls Disney Channel head Ross. Adds Gary Marsh, president of entertainment: "We decided to do music to serve our brands."

First up was Hilary Duff, whose debut release on Disney's Hollywood Records was in 2003. Disney began to weave music into its series. In 2003, it also aired "Cheetah Girls," a movie about four friends aspiring to music stardom and featuring Symone of "Raven." A ratings smash, it also yielded a Disney hit soundtrack album. "It was the first musical to break out," recalls Debra Martin Chase, the top producer of "Cheetah Girls" and its upcoming sequel. Marsh says it "told us we had a model that could really shine."

Enter Borden, executive producer of "HSM." "I wanted to make a movie that we could watch over and over as a family," says the father of three. "The nature of the characters is right out of mythological storytelling. It is classical 'Romeo and Juliet,' searching for one's identity ... cliques in society and how you have to behave." But because of "HSM" 's simple storyline and music, the movie ended up luring 4- and 5-year-olds, too, he says, adding, "The energy of the movie is so clean, simple and good."

So is the cast, which Disney introduced on a New Year's Eve special. Most weren't new to Disney. Vanessa Anne Hudgens (Gabriella) hailed from two Disney pilots, while Lucas Grabeel (Ryan Evans) was in Disney's 2004 TV movie "Halloweentown." Tisdale's a star of "The Suite Life of Zack & Cody." Disney Channel execs remembered Zac Efron, who plays Troy, from a Disney sitcom pilot. Still, they all had to audition. "Disney wants you to go get it," says Tisdale.