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Shanghai Disney Plans Unveiled: Big on ‘Pirates,’ but No Space Mountain Shanghai Disney Plans Unveiled: Big on ‘Pirates,’ but No Space Mountain
(about 11 hours later)
SHANGHAI — The Walt Disney Company unveiled on Wednesday the designs and attractions at the new megaresort that is expected to open here in Shanghai in the spring, its first theme park in mainland China. SHANGHAI — The Walt Disney Company unveiled on Wednesday the designs and attractions at the mega-resort that is expected to open here in Shanghai in the spring, its first theme park in mainland China.
The company said it was completing work on a 1.5-square-mile area that will house the Shanghai Disney Resort, with six themed areas, including one devoted to the hit “Pirates of the Caribbean” film series, as well as live entertainment venues, a Broadway-style theater, two hotels and the “tallest, largest and most interactive castle at any Disney theme park.” The company said it was completing work on a 1.5-square-mile area that will house the Shanghai Disney Resort, with six themed sections, including one devoted to the hit “Pirates of the Caribbean” film series, as well as venues for live entertainment, a Broadway-style theater, two hotels and the “tallest, largest and most interactive castle at any Disney theme park.”
“We are taking everything we’ve learned from our six decades of exceeding expectations — along with our relentless innovation and famous creativity — to create a truly magical place that is both authentically Disney and distinctly Chinese,” Robert A. Iger, Disney’s chief executive and chairman, said at a news conference here.“We are taking everything we’ve learned from our six decades of exceeding expectations — along with our relentless innovation and famous creativity — to create a truly magical place that is both authentically Disney and distinctly Chinese,” Robert A. Iger, Disney’s chief executive and chairman, said at a news conference here.
Shanghai Disneyland represents an enormous bet on China’s shifting approach to westernized entertainment and leisure travel. Mr. Iger has said the company considers the $5.5 billion resort to be as transformative for the company as the establishment of Walt Disney World in Florida was in the 1970s. Shanghai Disneyland represents an enormous bet on China’s shifting approach to westernized entertainment and leisure travel. Mr. Iger has said that Disney considers the $5.5 billion resort to be as transformative for the company as the establishment of Walt Disney World in Florida was in the 1970s.
Disney’s goal is to create an engine that will drive demand in China for a wide range of Disney products: toys, clothes, furnishings, movie downloads and video games. Disney typically relies on the creation of new Disney TV channels to pump its brand abroad, but China’s limits on foreign media have made that impossible. Disney’s goal is to create an engine that will drive demand in China for a wide range of Disney products: toys, clothes, furnishings, movie downloads and video games. Disney typically relies on new Disney TV channels to pump its brand abroad, but China’s limits on foreign media have made that impossible.
But Disney is walking a careful line. China approved the resort only after Disney promised that it would reflect Chinese culture. To that end, Disney’s messaging has been careful, with executives at the company’s headquarters in Burbank, Calif., repeatedly referring to the park as “authentically Disney and distinctly Chinese.” But Disney is walking a careful line. China approved the resort only after the company promised that it would reflect Chinese culture. To that end, Disney’s messaging has been careful, with executives at the company’s headquarters in Burbank, Calif., repeatedly referring to the park as “authentically Disney and distinctly Chinese.”
Disney has tried to keep its specific plans for the Shanghai resort a secret, partly because it wants to control the marketing message and partly because of fears that Chinese parks would churn out copycat attractions. Those worries were stoked earlier this month, when a Chinese animated movie called “Autobots” was marketed with images that were nearly identical to characters from Disney-Pixar’s “Cars.” Disney has tried to keep its specific plans for the Shanghai resort a secret, partly because it wants to control the marketing message and partly because of fears that Chinese parks would churn out copycat attractions. Those worries were stoked this month, when a Chinese animated movie called “Autobots” was marketed with images that were nearly identical to characters from Disney-Pixar’s “Cars.”
Despite Disney’s efforts, however, plans for the park have leaked for months onto fan blogs. Generating particular interest online ahead of Wednesday’s announcement was Disney’s decision to build a major “Tron”-themed attraction. “Tron: Legacy” was released in China in 2010, but it took in only $19 million there. Disney recently decided not to move ahead with a sequel. Despite Disney’s efforts, plans for the park have leaked for months onto fan blogs. Generating particular interest online before Wednesday was Disney’s decision to build a major “Tron” film-related attraction. “Tron: Legacy” was released in China in 2010, but it took in only $19 million there. Disney recently decided against a sequel.
To compare, the last “Pirates of the Caribbean” movie, subtitled “On Stranger Tides,” took in $70 million in China in 2011. The strong audience response was one reason Disney felt comfortable in moving ahead with plans for a large “Pirates”-themed area. To compare, the last “Pirates of the Caribbean” movie, subtitled “On Stranger Tides,” took in $70 million in China in 2011. The strong audience response was one reason Disney has said it felt comfortable in moving ahead with plans for a large “Pirates”-themed area.
Disney knows all too well the downside of skimping on rides and shows. A boutique-size Hong Kong Disneyland, which opened in 2005, struggled with losses for its first six years, in part because attendance was lower than expected; visitors and the local news media criticized the park as not offering enough to do. Disney knows all too well the downside of skimping on rides and shows. A boutique-size Hong Kong Disneyland, which opened in 2005, struggled with losses for its first six years, in part because attendance was lower than expected. Visitors and the local news media criticized the park as not offering enough to do.
Disney and the Hong Kong city government, which owns 52 percent of that resort, have since poured more than $1 billion into a resort expansion that will stretch into 2017. Last year, Hong Kong Disneyland attracted 7.5 million people — roughly flat compared with 2013 — and generated $42.8 million in net profit, a year-over-year increase of 36 percent, according to Disney. Disney and the Hong Kong city government, which owns 52 percent of that resort, have since poured more than $1 billion into an expansion that will stretch into 2017. Last year, Hong Kong Disneyland attracted 7.5 million people — roughly flat compared with 2013 — and generated $42.8 million in net profit, a year-over-year increase of 36 percent, according to Disney.
In its announcement Wednesday, Disney said the new resort had more technology and original features than previous parks, including many Chinese features blended into mosaics, gift items, performances and even the huge castle. On Wednesday, Disney said the new resort had more technology and original features than previous parks, including many Chinese features blended into mosaics, gift items, performances and even the huge castle.
Some of Disney’s most iconic attractions, including Space Mountain, It’s a Small World and Star Tours, a “Star Wars”-themed journey through space, will not be featured when the park opens.Some of Disney’s most iconic attractions, including Space Mountain, It’s a Small World and Star Tours, a “Star Wars”-themed journey through space, will not be featured when the park opens.
Perhaps surprisingly, “Star Wars” and the Marvel superhero movies will be represented upon opening, not by showpiece rides but by costumed character meet and greets, a comic book drawing area and a “cinematic experience.” When the resort opens, its Broadway-style venue, the Walt Disney Grand Theater, will have a global premiere of Disney’s hit show “The Lion King” in Mandarin.Perhaps surprisingly, “Star Wars” and the Marvel superhero movies will be represented upon opening, not by showpiece rides but by costumed character meet and greets, a comic book drawing area and a “cinematic experience.” When the resort opens, its Broadway-style venue, the Walt Disney Grand Theater, will have a global premiere of Disney’s hit show “The Lion King” in Mandarin.
Shanghai Disneyland will most likely rely less on repeat attendance and annual passes than its Hong Kong cousin. Disney estimates that 330 million people live within three hours of the Shanghai property, which is in the Pudong district. Shanghai Disneyland probably will rely less on repeat attendance and annual passes than its Hong Kong cousin. Disney estimates that 330 million people live within three hours of the Shanghai property, which is in the Pudong district.
Disney owns about 43 percent of Shanghai Disneyland, with the balance held by Shanghai Shendi, a government-controlled entity; Disney retains operational control, however, holding a 70 percent stake in the management company created with Shendi to run the resort. Disney owns about 43 percent of Shanghai Disneyland, with the rest held by Shanghai Shendi Group, a government-controlled entity. Disney retains operational control, however, holding a 70 percent stake in the management company created with Shendi to run the resort.
Early this year, Disney said that it was moving the opening of the park to next spring, a delay from early 2016, and that the company and its Chinese partner would spend an additional $800 million to increase the number of rides on opening day, bringing total spending to $5.5 billion.Early this year, Disney said that it was moving the opening of the park to next spring, a delay from early 2016, and that the company and its Chinese partner would spend an additional $800 million to increase the number of rides on opening day, bringing total spending to $5.5 billion.