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I think that Disney is hoping that we'd forget. I haven't seen Ariel's daughter Melody be referenced since the DTV came out years ago. I think for the Disney Princess line, we have to imagine that it takes place sometime between the original movie and the DTV sequel, before Ariel had a kid. After all, if Ariel is a mom with a daughter, then she'd technically be a queen, and since this is Disney, we can't have that.
They're hoping we'd forget, yet they went and released the movie on Blu-ray last year? Yeah, good luck Disney.