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Disney to decide its other MVNO's future
Walt Disney's CRO Thomas Staggs said that the Disney MVNO has faced "some challenges," and now the parent company is "in the process of evaluating where we sit." Staggs made the comment during an appearance at the Merrill conference in Marina del Rey, according to a report in Silicon Alley Insider. Staggs added that the MVNO business lacks the scale necessary to be successful. While Staggs declined to project Disney Mobile's losses in 2008, he said that the upcoming budgetary analysis will help Disney "decide just what our plan is going forward." Disney terminated its Mobile ESPN MVNO service a year ago this month.
For more on Disney Mobile's future:
- read this Silicon Alley Insider article
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Disney release metrics for Disney MVNO Article
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Comments
I am amazed that more of the MVNO's and investors did not look at the CLEC track record of the mid 90's before proceeding. In essesence it was the same play but with a wireless front end. Sure the mobile operators made some money with all the MVNO's that have recently launched but probably not enough to overcome the disctraction to their core businesses. Disney's MVNO management team lacked the experience to understand the lessons of the CLEC market. They also did not truly comprehend that parents are NOT going to switch out their phones so that their child can have a Mermaid themed phone. Disney is the most amazing marketing company in the world as evident when I go to Orlando. Great marketing though cannot overcome an MVNO's challenges when trying to acquire a mobile user. I suggest that Disney work with Motorola or some other handset vendor and launch a Disney phone with each operator. In addition they can develop an application and bundle Disney content that can be installed on any phone via over the air activation for those folks that do not want to switch handsets or operators.
Great comments. I couldn't agree more with you. Through Apple's iPhone, we are witnessing the power a device wields. Such a Disney phone you mentioned would be a better proposition.--Lynnette
Your comments show a lack of understanding about both the MVNO model, and specifically the Disney Mobile offering. It is hardly a "mermaid themed" phone; on the contrary it is a service that allows parents to allow kids to learn responsibly how to use cellular service while providing a wireless service for the children where they can monitor usage as well as keep track of the child's whereabouts. These were industry-leading features and have been avaialble since Disney Mobile came into the amrket last year, and even large carriers such as AT&T were only able to offer something similar months later (only a few days ago).
Disney is horribly pathetic..Walt is currently doing the Mickey mouse tilt a whirl in his grave as we speak. 9 year olds do not need cell phones and no teenager on the planet wants a phone with goofy on it. Disney should stick to crappy movies and dangerous, child tossing amusement park rides, they seem to do well in those areas.



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