By: Evan Pondel

February 2, 2005, Los Angeles Daily News

Walt Disney Co. executives continued to tout China and India at an investors conference Tuesday, saying the two countries represent significant areas of growth for the entertainment titan.

But analysts question just how profitable a company like Disney could be in countries that may not embrace American prices.

"Everyone loves Disney in Europe, even though they are not making any money over there," said Thomas Lys, a professor at Northwestern University's Kellogg School of Management. "And I wouldn't be all that optimistic that Asia is going to be the company's big salvation."

With Disney poised to open a new theme park in Hong Kong this fall, the Burbank-based company is preparing a series of product releases throughout Asia. Furthering its campaign abroad, Disney recently hired managing directors for China and India.

"There's growth in international markets," Bob Iger, Disney's president and chief operating officer, said at the company's investor conference Tuesday in Orlando, Fla. "And there is more money being spent on entertainment and mass communications (in Asia)."

In December, Disney launched a 24-hour Hindi channel in India. Lys said Disney's content will likely go over well, but he can't fathom the existence of a theme park in India. "The expense would be too great."

At the same time, a burgeoning economy in China may welcome Disney's presence. Shi Zhang, associate professor of marketing at the University of California, Los Angeles, Anderson School of Management, said Disney is the darling of Asia.

"The desire of the consumer in greater China is more in tune with what's happening in America. They love the brand," Zhang said. "And Disney has a great opportunity to take advantage of this with their 50th anniversary."

Shares of Disney added 17 cents to close at $28.80 Tuesday on the New York Stock Exchange.