Walt Disney Internet Group Launches Web Site in China

In a further step to extend its brand overseas, Walt Disney Co. this week launched its first Chinese-language Web site and reiterated its goal of possibly building a second theme park in China.

The Web site, Disney.com.cn, will be operated with a Chinese partner and will tout the company’s theme parks, television programs and movies. As with Disney.com, the site also will feature Disney’s online subscription service Blast, which offers games and attractions for children. The site won’t have links to other Disney sites, such as ESPN and ABC.

“Disney’s content, including such recognizable characters as Mickey Mouse, Minnie Mouse and Donald Duck, has universal appeal to children and families of all cultures and children,” said Mark Handler, international executive vice president with Walt Disney Internet Group. “We’re excited to be part of the Chinese Internet market.”

Handler made the announcement in Beijing with executives from Disney’s partner, SeaRainbow Holding Corp., which owns the top three game sites in China.

SeaRainbow will operate the Web site and pay a fee to Disney. Disney would not discuss its investment or fees.

The new China Web site reflects Disney’s growing international expansion. Disney has several international language Web sites to promote its brand throughout Europe and Asia.

Disney will open a second theme park in Japan, Tokyo DisneySeas, on Sept. 4.

China is especially appealing to Disney because of its vast market, with more than 1.2 billion people.

Disney is building a theme park in Hong Kong, set to open by 2006, and may build a second one in mainland China.

Walt Disney officials Monday would not confirm a report in a Chinese newspaper that the company might be negotiating to open a theme park in Beijing in time for the 2008 Summer Olympics.

Irene Chan, spokeswoman for Walt Disney Co. Asia-Pacific, would not discuss the report in the Beijing Evening News but said “two theme parks in China is always a possibility.”

Chan said Disney’s current “focus is to concentrate on opening our park in Hong Kong.”

Disney Chief Executive Michael Eisner was set to meet with Chinese officials this week to get an update on the $3.3-billion Hong Kong Disneyland project, which will have up to 2,100 hotel rooms and a 28,000-square-foot entertainment district similar to Downtown Disney in Anaheim.

Disney is among several major multinational corporations, including Microsoft Corp., News Corp. and Viacom Inc.’s MTV, that are seeking inroads into China.

“It’s a significant market, with the explosion of capitalism and a lot of newfound wealth,” said Stuart Linde, an analyst with Lehman Bros. “And Disney needs to capitalize on that, especially with something as universal as family entertainment.”

The new Web site could help promote one or more theme parks in China.

But like other U.S. companies, Disney faces some political risks in doing business in China.

Disney angered Chinese officials in 1997 by distributing a film about the Dalai Lama, the exiled Tibetan leader. More recently, Chinese officials complained that Disney’s animated feature “Mulan” was too “foreign looking.”

Although China has blocked several foreign Web sites from its citizens, Disney officials say they don’t expect a problem.

“We’re not going to be the subject of censorship,” said Steve Wadsworth, president of the Walt Disney Internet Group. “Disney is a highly regarded company and brand in China so I don’t think there’s any concern there.”