Card Flip: Disney Weighs New Partner

Brandweek, Oct 16, 2000 by Terry Lefton

While the contract Disney's longtime relationship with credit-card partner American Express doesn't expire for another 18-24 months, the entertainment conglomerate is already casting around to see if it makes sense to end its relationship of more than a decade.

No official solicitation has been sent, but sources at several large issuers said Disney has informally contacted them to see what they could bring to a potential Disney relationship. Although marketing tie-ins on a Disney cobranded card could range from video offers to discounts at ESPN Zone restaurants, sources said Disney is principally looking to add smart card technology to any deal plus interactive features that would work in its theme parks. Sources indicated the discussions were still exploratory

"They've even told us it's entirely possible they'll end up back with AmEx," said one marketer at a top issuer," but whoever gets the deal, it's clear that Disney wants to leverage its credit card relationship much more than they have been, which has been mostly co-promotions."

AmEx, which only began cobranding its various payment cards in the past few years with Delta, might also be pressured to co-brand with Disney Sources speculated that a co-branded Visa or MasterCard featuring the likes of Mickey Mouse would generate at least a million new cards, fueled by the Disney name. Another likely draw: the possibility of some powerful marketing incentives, such as card spending targets that would trigger Disney family vacations and other freebies.

Auriemma Consulting, Westbury, New York, is handling the review for Disney although execs there would not comment.