Disney's Star Machine

Disney also wants its stars to be embody its brand of family wholesomeness. To that end, it looks at more than how well a kid can perform. Casting is as much about personal character as it is about talent. All of this is unspoken; there's nothing in any contract about not staying out late on the Sunset Strip. "I don't want to be seen buying cigarettes and liquor," says Efron. "It wouldn't be a smart move to be out doing promiscuous things." For Disney, the key to keeping its kids tabloid-free is involving the parents. "I'm hiring the family," says Marsh. Literally, in some cases. Billy Ray Cyrus plays dad to his daughter Miley Cyrus in "Hannah Montana." And the upcoming Disney Channel movie "Jump" pairs Corbin Bleu (Chad in "HSM") and his dad, David, as father and son.

The synergistic spectacular that is "HSM" caps an equally spectacular rebound for Walt Disney Co. from the last tumultuous years of CEO Michael Eisner's reign. For now, it's Disney's world again. Under the low-key, but high-impact--so far, anyway--stewardship of Robert Iger, CEO since September, the company has emerged as the leader of Hollywood's digital age. After forging a groundbreaking deal to sell downloads of ABC shows for iPod, Iger next pulled off a bold acquisition of Pixar. And "Pirates of the Caribbean: Dead Man's Chest," its sequel to the 2003 surprise smash hit, sold $132 million in tickets on opening weekend, a record. In a note to clients last week, Goldman Sachs research analyst Anthony Noto estimated that "HSM" soundtrack sales plus "Pirates" box office could add the equivalent of an extra three cents a share to Disney's 2007 earnings. Disney had been playing to rave reviews overall on Wall Street, with its stock price up about 20 percent this year. Then last week reports surfaced about a looming and deep retrenchment in the movie division, and later Disney's stock shed some of its hefty gains after one Wall Street analyst surmised that the company can't possibly repeat this year's brilliant performance in its next fiscal year.

The "HSM" cast may beg to differ. They'll all return in full feuding form next summer for the sequel. East High is on summer hiatus, so the battleground shifts to the country club, founded by (who else?) Sharpay's granddad. Troy, Gabriella and the others show up as lifeguards, waiters and caddies. And the haves and the have-nots tee off in the club's annual midsummer night's musical. There'll be plenty of drama: this time around, Ryan may turn on his sis.

But will Troy finally get to kiss Gabriella?

CORRECTION: The name of the producer of "Cheetah Girls" was misstated ("Disney's Star Machine"). She is Debra Martin Chase.

With Jessica Ramirez, Karen Springen, Jamie Reno, Marc Peyser and Ramin Setoodeh

© 2006