The Walt Disney Company will launch a free-to-air Disney Channel in Russia, a mega-market that Western media companies have been trying for decades to crack with little success.

The entertainment conglomerate based in Burbank, Calif., will form a subsidiary, which will hold a 49% stake in the venture with Russian broadcaster Media-One Holdings Ltd. Disney will invest cash and provide content to Media-One, which will allow the company to expand viewership of its popular U.S. franchises - such as "Hannah Montana" and "High School Musical" - as well as locally produced shows.

Media-One, has 30 owned and operated TV stations throughout Russia, as well as knowledge of the Russian market and regulatory environment, in order to adjust the viewers’ needs to Disney’s entertainment offer.

The deal still must be approved by the Russian authorities, which require foreign investors to have Russian partners. Russia has taken over the regulatory environment for TV from western European countries.

“This has been an effort to move deeper in the market and deliver Disney-branded programming, wrapped in a package that is very Disney, and appeals to local kids and families," said Rich Ross, president of Disney Channels Worldwide.

Due to limitation of cable and satellite television audience in Russia, Disney Channel will be broadcast over the airwaves for free in most of the country. In big cities, such as Moscow and St. Petersburg, it will be delivered by cable. Consequently, the channel could reach up to 75% of Russian television viewers.

Disney also has insisted upon locally made programming based on culturally relevant stories, recently partnering with Indian creative partners on children's TV and an animated film, and with Russian and Chinese partners on features films. It has also created this year a Russian version of its Web site, begun a stage version of "Beauty and the Beast" and started production of its first Russian-language film, expected to be released in Russia next fall. Disney's blockbuster films, including the "Pirates of the Caribbean" franchise, have also fared well theatrically in Russia. Next year, Disney will overtake the market in St. Petersburg.

Disney has been active in Russia since 2006. The studio collaborated with Sony Pictures Releasing International to distribute films in Russia, and Walt Disney Studios International just finished filming its first Disney-branded Russian movie, "The Book of Masters," a successful comedy based on traditional children's stories.

“Russia is an extremely important market for Disney and this new Disney channel is a great way for us to expand our brand and business,” said Robert A. Iger, Disney’s chief executive.

Disney sees Russia and China as crucial to its growth in the coming years. The deal makes Disney the master United States media company with a full-time branded television channel in the country.

"The Russians, as a people, have a great history and fondness for storytelling. They have great stories of their own, and they have a great appreciation and affinity for Disney, both our classic stories and our modern franchises," Bird said. "So we feel that the brand is very well placed in the Russian market already. We feel with the addition of Disney Channel, this can only enhance and build off the foundations we've laid today."

However Disney's expansion took place in a vulnerable period for the Russian economy. Doing business in Russia - particularly in media – may turn out to be challenging because of an unpredictable political and economic climate.