Siemens pushing brand name in US via Disney deal
Tue Nov 8, 2005 5:30 PM ET
By Jim Finkle
BOSTON (Reuters) - From New York's Times Square to the Epcot Center theme park in Florida, German electronics and engineering company Siemens AG <SEIGn.DE> is pushing some of the world's top names out of the branding limelight, thanks to a deal with Walt Disney Corp. <DIS.N> announced on Tuesday.
In Times Square, Siemens is replacing Sony Corp. <6758.T> on a big billboard run by Disney's ABC television network. And at the Disney-owned Epcot Center, the German company is taking over Spaceship Earth, a golf-ball-shaped attraction that AT&T Corp. <T.N> controlled for two decades.
Siemens will be putting its logo on those Disney showpieces and other prominent properties as part of a 12-year deal aimed at boosting its brand recognition in the United States.
The German company will also be able to use Disney characters for conferences and other events, said Siemens spokeswoman Paula Davis.
The companies did not disclose financial terms of the agreement, but TSE Sports & Entertainment President Robert Tuchman, who represents corporations in promotional deals with sports teams and other entertainment companies, estimates Siemens will get about $100 million in promotional and marketing rights.
"Disney is such a good brand. This is worth much more than, say, naming rights to a stadium," said Tuchman.
The Disney promotions are part of a major marketing push by Siemens, which wants to boost its brand after a decade of acquisitions and growth in the United States, where it now has some 70,000 employees.
Siemens is an industrial, engineering and electronics giant whose products include power plants, subway cars and phone systems, along with dishwashers, wireless phones and lightbulbs.
By the end of the year, Epcot visitors will see the Siemens name inside "Spaceship Earth."
AT&T, which is being acquired by SBC Communications Inc. <SBC.N>, had sponsored the attraction since Epcot Center opened in 1982. AT&T let the agreement expire as the company began to place less emphasis on marketing directly to consumers, said AT&T spokesman Jim Byrnes.
In the first half of next year, Siemens will get its permanent spot on the billboard in Times Square, Davis said.
Disney and Siemens also said they plan to collaborate in developing and implementing new technologies that can be used in a variety of settings, including theme park attractions and resorts.