The Hindu Business Line : A stock index on Harry Potter!

Chennai, July 25 Children are smart and businessmen who have realised this have usually struck a goldmine in a short time. With the phenomenal commercial success of the latest Harry Potter sweeping across all countries including India, which saw the final volume Harry Potter and the Deathly Hallows becoming the fastest selling book in history, an online stock recommendation portal has now developed an index of stocks connected with the estimated $10 billion opportunity related to t he boy wizard.

Compiled as the ‘Harry Potter Stock Index’, the index developed by Stockpickr ( www.stockpickr.com) represents 13 stocks from companies connected to the Harry Potter phenomenon. The index contains movie producers (Time Warner Inc), merchandisers (Amazon, Johnson & Johnson) and advertisers (like Coca Cola which has won rights to tie-in products in the film series), apart from the publishers currently associated with the series. Just to give an idea about the business opportunity surrounding the fictional character — global revenues from Harry Potter movies are estimated in excess of $3 billion, coming second only to the book sales that have reportedly grossed nearly $6 billion — excluding the sales of the current book.

Advantage investors

Five video games and over 400 additional Harry Potter products have been introduced into the market that has led to creation of an industry generating millions of dollars in sales. With each new book edition or movie release, Stockpickr believes investors can benefit by investing in companies involved with Harry Potter branded items.

“The Harry Potter phenomenon is a worldwide one that hits all age groups and both sexes and has created a $10-billion industry of books, dolls, games and even glasses and watches — it’s such a mini-industry of its own that you can plausibly build a portfolio of stocks to catch a little magic from this pubescent warlock,” Internet writer James Altucher says about the index.

Right from the word go in 1997 when the first book was published, till June this year over 320 million copies have been sold and translated into over 63 languages.

The final volume in the Harry Potter series has already been crowned the fastest selling book in history thanks to more than 11 million copies being bought during the very first day.

Another constituent in the index, US internet commerce firm Amazon sells the latest book for $17.99 in its official Harry Potter Merchandise site housing nearly 40 collectibles and this has led to its admission.

Others are US publisher Scholastic, Time Warner Inc (the parent of the motion picture producer Warner Bros), General Electric Co. While the logic behind including publishers is commonplace, Stockpickr says General Electric Co owns 80 per cent stake in NBC Universal whose subsidiary Universal Studios looks after the “The Wizarding World of Harry Potter” theme park in Orlando.

Hasbro (which has been awarded rights to Harry Potter trading card games, role playing games etc.), videogame publisher Electronic Arts and Mattel Inc, Harry Potter games and master toy licensee are a few other companies included in the index.

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A stock index on Harry Potter!