TV deal link to Shanghai Disney
The Walt Disney Company is pressing China to allow its television programming into the mainland as part of a package deal that could bring a theme park to Shanghai, sources said yesterday.
They said talks had included a request that the Disney Channel, entertainment programming usually distributed for a fee over a cable television platform, should be a part of the discussions.
Shanghai government officials signed a framework agreement with the American company last month to build a theme park, in a move that surprised Hong Kong where a Disney theme park is under construction at Penny's Bay. SAR officials have said they were told there would be no competing park until the local one was 'mature'.
It was not immediately clear what other concessions were being sought by Disney but a source quoted an official familiar with the talks as saying: 'Disney are asking for a lot. The talks have been very difficult.' Having the Disney Channel would help Walt Disney boost its brand awareness and culture in the mainland's market of 1.3 billion.
Asked about the negotiations, a Disney spokeswoman in Hong Kong, Irene Chan, said: 'Right now our priority is to successfully open Hong Kong Disneyland in 2005-06. We have made no other definitive decision on commitments at this time.
'We have a continuing dialogue with China about a variety of Disney initiatives that are part of our overall China strategy, including television, motion pictures and consumer products, of which theme parks are only a part.'
Industry sources said that Shanghai would be a likely place to trial Disney's family entertainment programmes on a local cable television network, and local officials would be likely to agree to a package that also included a theme park.
They added that Disney probably had considerable leverage, at least at the local level.
The decision for so-called 'landing rights', or a licence to receive and legally distribute the programming, would require Beijing's approval. Officials at the State Administration of Radio, Film and Television said they were unaware of any such plans.
If Disney manages to obtain the rights, it would be the fourth such deal in China.
News Corp's Star TV, its partially owned Phoenix TV and AOL Time Warner's CETV have all received permission for programme distribution - though they have only been for Guangdong province.
Industry officials noted that the Shanghai Media Group, which includes the city's main television stations as well its key newspapers and radio stations, is planning to launch interactive cable operations later this year.
It was unclear if Disney might play any role in that venture. An official at the Shanghai firm said: 'A number of foreign companies have expressed interest in meeting us.'
He declined to elaborate.