DISNEY ENTERS CREDIT KINGDOM.

Byline: Evan Pondel Staff Writer

BURBANK - Disney fanatics who prefer credit over cash will soon have further incentive to whip out the plastic - a credit card that rewards consumers with theme park getaways.

The Walt Disney Co. plans to launch a credit card in the first half of 2003 with the help of Visa USA and Bank One Corp. The companies wouldn't reveal the financial terms Tuesday, although the deal stands to strengthen Disney's revenues, while extending the media giant's marketing might, said Peter E. Murphy, a senior executive vice president and chief strategic officer at Disney.

The card will ultimately enable Burbank-based Disney to better understand consumers' spending habits, rewarding its usage through the company's domestic businesses in much the same way airlines and hotel cards offer rewards, Murphy said.

Still, the credit card industry is highly competitive, even more so when companies are attempting to enter the arena. For that reason, Disney said it will approach this business with the same full-force marketing prowess seen in other areas of the company. That effort will take the form of credit card applications at Disney stores, commercials and mailing information to consumers. But unlike many credit-card campaigns, telemarketing will not be a part of Disney's marketing repertoire.

``Consumers are smart,'' Murphy said. ``And this is more of a consumer oriented card. People are looking for ways to stretch their Disney experience.''

Disney, Bank One and Visa are also looking for ways to imprint their brand names on consumers. Instead of perceiving the deal as a major plus to Disney's revenues, Stuart Linde, an analyst with Lehman Brothers in New York, said the credit card's primary function is branding.

``Disney is a powerful global brand,'' he said. ``And the essence of the Disney brand is its parks and animation. I'm sure Disney received something upfront for the deal.''

More than 30 percent of Disney's consolidated income stems from Walt Disney World. And companies that have an opportunity to profit from the Magic Kingdom would be amiss if they didn't partake in a credit card deal.

``Disney World is a huge piece of the income and there are a lot of companies that can benefit from associating with the brand,'' Linde said.

Visa's alliance with Disney will give the Foster City-based company a foothold at theme parks, resorts and studios. The credit card company will also continue its extensive advertising on Disney's media properties, such as its ABC Television Network, ESPN, ABC Family, SoapNet and ABC Radio Network.

``In creating a successful alliance, though, you also have to deliver added value for the card holder,'' said Michael Lynch, a senior vice president with Visa. ``And no one is better at delivering to the family audience than Disney.''

Aside from Disney's partnership with Visa for inherent marketing benefits, Chicago-based Bank One was accessed for its deep pockets. The bank is the nation's sixth-largest bank holding company, with assets exceeding $260 billion.

``We had talked with several financial institutions, but we felt the most comfortable with Bank One's philosophies,'' Murphy said.

The bank's name will be inscribed on the card, yet Murphy would not disclose how the Disney logo will play on the plastic.

Disney shares declined 26 cents, or 1.16 percent, to close at $22.24 Tuesday.