The Walt Disney Company has announced that it will discountinue the popular Disney Club effective December 31, 2003. All memberships and benefits will expire on that date.
Disney has also announced, in conjunction with the closing of the Disney Club, there will now be a Disney Visa card announced. Holders of the new Disney Visa wil be able to earn points and discounts good on Disney items. No other specifics are available concerning the Visa card.
Orlando Sentinel Article
Disney Club's demise dismays the Mouse's devotees
By Richard Verrier
LOS ANGELES -- Die-hard Disney fans say they are being short-changed by the company's decision this week to shut down a discount club inspired by the company's founder.
The latest dispute between fans and Disney's corporate managers centers on the Burbank entertainment company's decision to shut down the Disney Club by next year. The club, which at its peak a year ago had a half million members, gives 10-percent to 20-percent discounts off Disney Store merchandise, theme-park admissions, car rentals and hotel packages at Walt Disney World and Disneyland.
Members also get special privileges, including a subscription to Disney Magazine and invitations to advance screenings of movies.
Disney said Monday it will replace the Disney Club with a "co-branded" Disney/Visa credit card in which customers will be able to accumulate points that can be redeemed toward discounts on Disney merchandise and vacations.
Although Disney would not comment on the financial terms, such corporate alliances are lucrative and important for Disney as its seeks to shore up its bottom line.
Even so, the decision has incensed the typically passionate Disney fans, who think the company is relentlessly pursuing the bottom line at their expense.
For them, the club carries special significance because it was a successor to the original Magic Kingdom Club, the group Walt Disney created in 1958 to promote Disneyland to Southern California businesses and their employees. And fans are still smarting over Disney's decision two years to shut down the Magic Kingdom Club and replace it with a similar discount service charging a $39.95 annual subscription fee.
"It's just one more thing they are taking away from guests," said Arlen Miller of Orlando, noting the company's recent decision to raise admission prices at its Walt Disney World theme parks. "Disney used to set themselves as a standard above everyone else by offering extra services to their guests."
Raymond Locke, of Saddlebrook, N.J., has headed the local Disney Club for 15 years at United Parcel Service, where he works as a clerk.
"I'm disappointed," said Locke, 47, "It was one of the only ways that the general public could get any type of discounts or benefits from the company. As little as they were, they were at least something."
As for the credit card, he said, "you still have to spend the dollar to get the points and get the benefits that before were totally free."
Although Disney wouldn't discuss details of the planned card, customers will get more and better services and discounts, said company spokesman Gary Foster. Disney does not expect to charge an annual fee for the card, which will be introduced next year. Points will be accumulated based on general credit card purchases.
"We have not forgotten these club members," Foster said. "We do feel like we're developing a program that is going to be much better than the Disney Club."
Disney informed club members this week that the club will be disbanded Dec. 31 of next year. The company will stop taking memberships by year's end.
The feud is just the latest clash between Disney fans and the company.
Last month, a seemingly mundane programming change at the Disney Channel to replace Vault Disney -- which showed classic Disney programs from decades ago -- with newer teen and preteen dramas such as Lizzie McGuire and Kim Possible created an uproar among older Disney fans, who saw the decisions as another affront to the Disney heritage.