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In late 1996, China’s leaders vehemently objected to Disney’s plans to distribute the movie ‘Kundun,’ Martin Scorsese’s film that told the story of Tibet’s exiled spiritual leader, the Dalai Lama, and China’s brutal occupation of that nation. Following the film’s release in 1997, China’s leaders made threatening statements concerning Disney’s future in their markets. Disney held firm on its position on the movie. “Disney’s potential business in China is infinite. But Disney has to decide whether it wants to facilitate business or stand for free speech.”4 Another Disney film, the animated movie ‘Mulan,’ about a legendary Chinese woman-warrior, proved to be a box-office disappointment in China. It was claimed that the film’s Chinese characters looked too Western. In addition, pirated video versions of the film were available in China before the film arrived in theaters.5 Not all of Disney’s relationships with China were negative however. The liberalization of China’s markets had generated benefits for the firm. ‘The Lion King’ had brought in almost $4 million in 1996 and the soundtrack had sold 1.4 million
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Between 1993 and 1998, more than 2000 theme parks had been opened in China, developed and financed by both domestic and foreign investors. Disney management was convinced that a huge, child-loving populace would support a lively theme park business. Instead, many projects were swamped by excessive competition, poor market projections, high costs, and relentless interference from local officials. Several hundred parks had already been closed, due to poor quality of service and less than exciting entertainment experiences. Instead of increasing, consumer enthusiasm for theme parks had dwindled. 6 These parks had also been unsuccessful at attracting a significant number of customers from other Asian nations. Other factors affecting the viability of an Asian theme park in China had to be evaluated. The Chinese economy was one of the fastest growing during the 1990s and was expected to experience significant growth well into the new millenium. At least onethird of the nation’s 1.2 billion people resided in the rapidly developing coastal region, the industrial heartland of the nation. The largest and most developed population centers were located in this area, where an awakening and growing middle class lived and worked. Their leisure time had increased significantly and was expected to continue to outperform the rest of the nation. With their income levels approaching $1,000 per month, China’s middle class families were a prime target audience for Disney theme park experiences. The Chinese had a cultural disposition toward pampering children, which had been accentuated by the nation’s one-child per couple policy. Although many theme parks in China had not been successful, it was still generally believed that an exciting experience of high quality would attract visitors to a park. A mundane experience would
Between 1993 and 1998, more than 2000 theme parks had been opened in China, developed and financed by both domestic and foreign investors. Disney management was convinced that a huge, child-loving populace would support a lively theme park business. Instead, many projects were swamped by excessive competition, poor market projections, high costs, and relentless interference from local officials. Several hundred parks had already been closed, due to poor quality of service and less than exciting entertainment experiences. Instead of increasing, consumer enthusiasm for theme parks had dwindled. 6 These parks had also been unsuccessful at attracting a significant number of customers from other Asian nations. Other factors affecting the viability of an Asian theme park in China had to be evaluated. The Chinese economy was one of the fastest growing during the 1990s and was expected to experience significant growth well into the new millenium. At least onethird of the nation’s 1.2 billion people resided in the rapidly developing coastal region, the industrial heartland of the nation. The largest and most developed population centers were located in this area, where an awakening and growing middle class lived and worked. Their leisure time had increased significantly and was expected to continue to outperform the rest of the nation. With their income levels approaching $1,000 per month, China’s middle class families were a prime target audience for Disney theme park experiences. The Chinese had a cultural disposition toward pampering children, which had been accentuated by the nation’s one-child per couple policy. Although many theme parks in China had not been successful, it was still generally believed that an exciting experience of high quality would attract visitors to a park. A mundane experience would