Comments from Disney CEO on Shanghai Disney Theme Park and HKDL,Reuters,2006-8-9

[HongKongDisneyland]

SHANGHAI, Aug 9 (Reuters) - Authorities in Shanghai have started preparing a site for a Disneyland theme park, although central authorities have not yet reached any agreement with Walt Disney Co. (DIS.N: Quote, Profile, Research), an official newspaper said on Wednesday.

The amusement park, planned for construction in the outskirts of Shanghai's Pudong New District, would cover an area of 4.25 square kilometres (1.641 sq mile), China Securities Journal reported, citing sources.

Disney Chief Executive Robert Iger told CNBC on Wednesday that the company has been long interested in Shanghai for a theme park but had nothing further to add about whether plans had been finalized.



Iger said the nearly year-old Hong Kong Disneyland park "is a major brand builder for the company in China."
"If we build at another area in China it won't affect Hong Kong," Iger told the network.

The Shanghai Disneyland, which would be the first Disney theme park on the Chinese mainland, is expected to open when the city hosts the World Expo in 2010, the report said.

But authorities in Beijing have still to decide whether to give permission for construction of the park, a spokesperson for the Shanghai municipal government said.

Shanghai's mayor in March said the city was eager to host Disney, after the $1.8 billion Disneyland Hong Kong opened in 2005, while China's capital city Beijing also wants one. (Additional reporting by Gina Keating in Los Angeles, editing by Dave Zimmerman)

Source : Reuters

[Loomis]

Was just reading this article.

It is interesting that they are going ahead without official word yet. Will this end up being a big hub shaped plot of land, or a Disneyland? I suspect something more concrete has been agreed upon in theory, otherwise there probably wouldn't be all this effort.

[DisneyMickey]

The government and Disney are starting to treat Disneyland's as if they are real estate developments. If Disney builds a Disneyland in Shanghai and in Bejing, they will have officially sold of Disneyland and they will become a chain like Disney Stores.

The newer the Disney theme park, the cheaper it is. They can barely get the Hong Kong resort off the ground. It has had nothing but problems, and they already want to build again in China. I'm sure they will build it the exact same way as HKDL- cheap and small. They are hesitant to expand Hong Kong (which desperately needs it)...and they are going to plan a Shanghai resort? It doesn't make any sense.

[WDW1974]

It doesn't have to make sense to the fan community.

China is the largest untapped market in the world, with a growing middle class (more like working class but anyway ...).

Other media companies have made inroads in China. Disney wants the potential billions that can be made there.

FWIW, from what I have heard, the park that is being pushed for Shanghai is NOT a MK-style park. But I also have serious questions and issues with Disney making their parks as ubiquitous as WalMarts, McDonald's or Starbucks here.

More importantly, Disney hasn't learned a thing from its cultural missteps in Paris and in Hong Kong. The Chinese officials have had major issues with the Disney team negotiating for the park ... which I am sure had nothing to do with China's refusal to release PoC: Dead Man's Chest there (this is sarcasm, btw)!

Disney officials don't know how to negotiate in China ... and their paranoia is showing.

[bigglesworth003]

I Don't see it being as 'small and cheap' as hong kong in another article it is said to have a budget of $3.8 Billion,(http://www.chinadaily.com.cn/bizchin...ent_660807.htm)

Triple what Hong Kong's Was!

but still i'm not sure about all this

[tloolgb]

which I am sure had nothing to do with China's refusal to release PoC: Dead Man's Chest there (this is sarcasm, btw)!
.

And here we go. There are billions to be made...if the communists don't censor your product. It is one thing to sell a boat load of toys and movies to the Reds, another thing to get in bed with them on a park and have them censoring your every move.

[lazyboy97O]

And here we go. There are billions to be made...if the communists don't censor your product. It is one thing to sell a boat load of toys and movies to the Reds, another thing to get in bed with them on a park and have them censoring your every move.

But think how good you look when you start sending everybody in your country to the "Happiest Place on Earth".

I really believe this was decided long ago when Hong Kong was approached.

[Cmash95]

in this case the chinese government wants this park more than disney from what I have read about it. and I think disney realises if they don't build china will just do a disney clone park. they are notorious for copying western technology. just ask gm about the chinese"cherry" car.

[tloolgb]

/\ Thats true. The Reds want this, with or without help. They seem malcontent with the nil control they have over HKDL.

[Rosso11]

After going to China last year and seeing the potential Disney has there, I would be shocked if Disney didn't put one in Shanghai. The number of people there is amazing to see. However, I really believe at this point and time Disney must make the decision not to put another Magic Kingdom there. They need to build something entirely different. If they don't the Dinsney parks will become to common very very soon. Unfortunatly, for Disney this is the riskier move. They have never opened any park without a MK first. However, I really feel they need to do this, especially since they are guranteed to continue growth after Shanghai. Shanghai will not be the last and if they don't start to become extremly distict between one another they will only hurt each other down the road.

[WDW1974]

Disney needs to replace most of its 'negotiating' team to begin with.
It might be best if they looked outside the company because so far, the results aren't promising.

And if they think they've had problems in Hong Kong -- and they do, even if they won't admit for five years (the DCA phenomenon), just wait until they hit Shanghai!

Man, that chicken will be a spicy dish ... wait, that's not chicken??!?!?

[jml338]

More importantly, Disney hasn't learned a thing from its cultural missteps in Paris and in Hong Kong.


You are right! All the problems for DLRP were coming from their lack of understanding of the French. Their spectacular failure was not due to the quality of their product but to their arrogance. Hire the right people for the negotiation (and for the management) and it will change everything.

For example, I still remember the scandal surrounding the cast members' hiring (which was all over the news). If they had shown some flexibility, it would not have given Disney such a bad reputation and hurt them.

Thank God, they changed their way but it is always hard to recover from a very bad beginning.

[riding_big_thunder]

NOOOOOOOOOOOOOOOOO!!! Please please please stop turning Disney resorts into Starbucks! I'll be very very angry if this park is built. There is no need for it.

[bigglesworth003]

Of course theres always no need for a new one when you live not far from one and doesn't cost 5-10 thousand to get to one.......

[WDW1974]

More importantly, Disney hasn't learned a thing from its cultural missteps in Paris and in Hong Kong.


You are right! All the problems for DLRP were coming from their lack of understanding of the French. Their spectacular failure was not due to the quality of their product but to their arrogance. Hire the right people for the negotiation (and for the management) and it will change everything.

For example, I still remember the scandal surrounding the cast members' hiring (which was all over the news). If they had shown some flexibility, it would not have given Disney such a bad reputation and hurt them.

Thank God, they changed their way but it is always hard to recover from a very bad beginning.

Trust me, they haven't changed. Even at DLP, where they have two WDW-castoffs (Karl Holz and George Kalogridis) making the same mistakes they've made at their past exec positions.

You should have seen Karl try and 'host' the Shanghai delegation back in May, he and his team of Americans looked like WalMart regional managers dealing with royalty. Yeah, that went swell ...

I can't for the life of me understand why men (and women) of such little talent, and absolutely no vision, continue to remain with TWDC.