Seeking to strengthen its position in the world's fastest growing media markets, the Walt Disney Co. together with Media-One Holdings Ltd., a Russian broadcaster that operates 30 stations countrywide, has unveiled 2009 plans to launch a nationwide, free-to-air television channel in Russia. While, Disney provides content, the channel will also broadcast local programming.

A 49% stake in the joint venture, Disney will provide cash and programming, as well as, expertise in content acquisition and marketing. While, Disney refused to comment on the size of its' joint venture investment, or the duration of the deal, Media-One, a majority stakeholder, brings 30-owned and operated Russian TV stations, including in-depth knowledge of Russia's market and regulatory environment.

Russia's regulatory environment for TV is similar to other western European countries and, will almost certainly give the deal its regulatory approval. Already, local retail, licensing, theatrical distribution, mobile and Internet businesses in Russia are being operated by Disney, with 75% of the Russian population 'extremely familiar' with the Disney's fairy tales and other products.

Since, paid cable and satellite TV subscription is 'very limited' in Russia, Disney opted for a free-to-air strategy, as the best way to get the broadest reach possible, and may expand its coverage by acquiring more TV stations to carry its' new channel. Operating 30-Disney Channels worldwide, mainly on cable and pay TV, they are crucial for familiarizing international consumers with Disney theme parks, movies and consumer products.

With international expansion a priority, Disney has already established TV presences in developing markets, like China, India ('Roadside Romeo'), Spain and Eastern Europe, making locally made programmes based on culturally relevant stories. For example, it recently partnered programmes with Indian creative partners for children's TV, including an animated film, as well as, feature films with Russian and Chinese partners.

With the Russian economy expected to do well in 2009, bucking the global economic downturn, 'a certain amount of optimism' is warranted on the part of Disney, which feels 'there is still a lot of room to grow' its' locally operated business.