Mickey Mouse phone probably doesn't have Disney / Apple's blessings
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Posts with tag disney
You know what they say: nothing gets you over the last one like the next one. Apparently, Disney is totally signed on to the aforementioned mantra, as just under seven weeks after Disney Mobile hung its US-based ears in shame, the Japanese unit of Walt Disney Company will reportedly be firing up similar operations in its neck of the woods. Apparently, the outfit has "reached a basic agreement" with Softbank Mobile to lease telecom networks and start providing nationwide service to those interested. Furthermore, it will be buddying up with Softbank to "develop handsets and consign its output to other companies," and if all goes to plan, Disney hopes to sign up "more than one million subscribers." Oh, and if that wasn't enough to make you scrounge up that decade-old Mickey Mouse figurine and give it a long overdue hug, users of the service will also have exclusive access to "animated film downloads." Regrettably, there's no word on an actual launch date just yet, but we'll be keeping a (grossly oversized) set of ears to the ground.
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.
Whoa Nellie. The folks who scooped Disney's ESPN-branded cellphone service -- MobileESPN -- are now calling for "big changes" in the MVNO. According to Rafat Ali and Staci Kramer who cite "numerous sources," the doomed MobileESPN MVNO is set for "a phased winding down/transition, or getting sold" outright this week, just before Disney's fiscal year draws to a close. A spokeswoman for MobileESPN confirmed an announcement was coming, most likely on Thursday, and that staff would not be laid off this week contrary to rumors. Merrill Lynch already asked Disney to pull the plug in a research note published back in July estimating that MobileESPN had only snagged 30,000 of the 240,000 anticipated subscribers since its Superbowl launch representing a loss of some $135 million for The Mouse. All this is potentially bad news for the likes of Amp'd Mobile and Helio who may be in for an MVNO backlash on The Street where investor sentiment is already pretty low. Oh BJ, not you and the Bear too?
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.





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