Disney Mobile intros its second phone for Japan, the DM002SH
[Via Akihabara News]
Disney Mobile posts
Perhaps Disney hoped that its MVNO bearing the corporate name would fare a little better than its doomed sibling, Mobile ESPN, but it was not to be. Making good on some ominous verbiage last week from CFO Thomas Staggs, Disney Mobile has announced that it will "cease its wireless operations" as of December 31, 2007. MVNOs have generally had a tough time navigating through the dog-eat-dog world of profitable wireless service, and Disney Mobile was dogged from the very beginning with tough competition on kid-friendly features and hardware from larger rivals and a dearth of quality handsets. Though it seems that existing subscribers will be able to continue to use most or all features of the service through then, folks are being encouraged to pack their bags and move elsewhere by November 30 to ensure plenty of time to get numbers ported. Furthermore, hardware purchased directly through Disney Mobile will be subject to a reimbursement of some sort, with details going up early next month.
In today's day and age, playing the MVNO game is a bit of a challenge. Some can't keep their head above water, others need a life raft, and a select few can actually stay afloat on their own. Disney's CFO Thomas Staggs -- who spoke at Merrill Lynch's Media and Entertainment Conference recently -- alluded that Disney was in the process of evaluating "where it sits" because of "some challenges" having the Disney Mobile brand distributed. "It's still too early to determine any losses for the MVNO," he concluded. With a variety of services targeted at kids filtering through virtually every mainstream carrier these days, does Disney still have a solid business model to work with?
We love when a carrier or MVNO announces that a "heap" of new features is about to be released; it's sort of like winning the lottery, but with more marketing mumbo-jumbo and less cash. It seems the kid-friendly MVNO Disney Mobile wants to sell more handsets to parents and is about to add several new handset features just in time for that busy summer mommy season. Among them are the new "scout" feature that will locate and show points of interest (using GPS positioning, we suspect), one-click photo uploading to a shared family photo area and a "family calendar" feature in late 2007 or 2008 that will push PC-created calendar entries and changes directly to the Disney Mobile handset. Disney Mobile still does not plan to add any EV-DO phones ($99 is the magic price point there, it seems), so your kindergartner's high-speed 3G data will have to wait for now.
One of the lovely perks of existing as a tiny entity within a global megacorporation is that you can be a little coy with your public disclosure and get away with it. That's exactly the game kid-friendly Disney Mobile is playing as it gears up to celebrate its first anniversary, completely ignoring the burning question of subscriber count to concentrate on inane stats like how many people use its GPS tracking services (30 percent, by the way) and the balance of adult users to kids (56 to 44 percent). Sub count is particularly interesting here for a couple reasons: first, all eyes are on the still-maturing MVNO market as players try to find their niches and stake their claims against the big guys, and second, stablemate ESPN Mobile bit the dust last year for lack of interest. To be fair, Disney Mobile's target demographic is utterly different than ESPN's was -- and kiddie phones seem to be hot items these days -- so it's entirely possible all's well in the Magic Kingdom; until Disney decides to release more deets or the division closes up shop, though, it's all speculation.
As MVNOs seemingly struggle to gain traction stateside, some are looking outside their home borders for an additional revenue stream -- while others are starting to reevaluate the wisdom in taking their business model abroad. Case in point: Disney, which has been having a rough go of it with its first MVNO (ESPN Mobile) and recently launched a second with Disney Mobile, has shelved plans to take Disney Mobile to the UK via O2's network, citing "the rapidly changing competitive environment" (when we run that bit through Babelfish's corporate lip service-to-English translator, we get "we're getting our rears handed to us at home, and we need to figure out what the heck we're doing wrong before we launch elsewhere"). Of course, this is technically an indefinite delay, not a cancellation -- meaning that there may yet be hope for Brits looking forward to tracking the little ones via Disney's Family Locator service -- just not any time soon.
Parents, rejoice: Disney wants you to know that your MVNO has arrived. Disney Mobile, Disney's second MVNO after launching Mobile ESPN earlier this year, pulls no punches about its target demographic -- family plans are the carrier's emphasis, although individual plans are also available. Family plan pricing on two lines ranges from $59.99 for 450 minutes to $249.99 for 4500 teenager-pleasing minutes; individual plans start at $39.99 for 400 minutes. All plans include "Family Monitor" for setting minute limits, "Call Control" to set schedules during which the phone cannot be used, and "Family Locator," a GPS-enabled service presumably similar to Verizon's freshly-launched "Chaperone." A potential roadblock to Disney Mobile's success in the rough-and-tumble MVNO game? Phone-savvy kiddies might whine about the phone selection -- a forgettable Pantech DM-P100 is the only model currently available, but fear not, boys and girls, a slightly higher-end LG DM-L200 is promised shortly.
UK
cellphone users just got their invitation to join the Mickey Mouse Club. Disney's MVNO, which launched in the US earlier
this month, is set to roll out in the UK in partnership with O2. Like the US version of the service, which is powered by
Sprint Nextel, the UK service will offer extensive parental controls. Specific handsets for the service have yet to be
announced, though Disney has said that the phones will not be include extensive Disney character branding. In the US,
the service features phones from a number of vendors, including the LG DM-L200 (pictured). The US service also includes
a GPS tracking function; Disney has not commented as to whether the feature will be available to UK customers.
They're still keeping Mickey's lips zipped on
pricing plans, but Disney has dropped a few more details about the Disney Mobile service,
including initial handset pricing starting at $59.99 with a contract. And even though they have yet to say which handset
they'll actually be offering for that price, LG has announced its first Disney Mobile phone, the DM-L200
(pictured), which joins Pantech's previously announced DM-P100. Nothing too exciting
about this clam; trimode CDMA, Bluetooth, 1.3 megapixel cam, and, presumably, that GPS service Disney's boasting of to
spy on your kids (though that's not listed in LG's specs). Speaking of which, Disney has added some more info about
that as well. The service is going to be called the Family Center, and will include the GPS tracker, parental controls
for minutes allowed, text messaging and multimedia features, restricted numbers, and the ability for parents to
remotely shut down their kids' phones during prohibited hours. Looks like this will be be the perfect service for
parents who want to make sure their kids aren't yapping on the phone when they should be doing their homework -- or
watching Lilo & Stitch on the Disney Channel.
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