Feeds

Disney immobilizes Disney Mobile

Family Center = Bambi's mum

Choosing a cloud hosting partner with confidence

First it killed Bambi's mother. And now it's decided to kill a fourteen-month-old wireless service.

Today, the Walt Disney Company said it will soon shut down Disney Mobile, the US-based wireless service it offers on bandwidth rented from Sprint Nextel. Unhappy with life as a mobile virtual network operator (MVNO), the company has already put the kibosh on sales of Disney Mobile, and those already using the service will get the boot on December 31.

Basically, the let's-rent-some-bandwidth model didn't pan out the way the company expected. "The MVNO model has proven, as we’ve seen with other companies this past year, to be a difficult proposition in the hyper-competitive US mobile phone market," said Steve Wadsworth, president of Disney's internet group. "In assessing our business model, we decided that changing strategies was a better alternative to pursue profitable growth in the mobile services area."

What's the new strategy? The company still believes in Disney Mobile's Family Center suite - which lets parents keep close tabs on their kids - and it hopes to move the suite onto someone else's mobile service via a licensing deal.

According to a company spokesman, recent changes in the mobile market made licensing far more attractive than MVNO. With the major carriers signing exclusive deals with big-name retailers, he told us, it became more and more difficult for Disney to compete. Verizon, for instance, has teamed up with Circuit City.

"A lot changed while we were ramping up the service in terms of the distribution landscape. We came to the conclusions that given all the changes in the retail model of the major carriers, it didn't make sense for us to undergo the investment needed to overcome the obstacles that cropped up."

This is hardly new territory for Disney. In February last year, the company launched ESPN Mobile, an MVNO service that dovetailed with its popular cable TV sports network/hype machine. This rental network was shutdown after just 11 months, and Disney stomached $30m in losses. Today, the company offers ESPN Mobile applications over the Verizon Wireless network.

As it seeks a similar licensing deal for Family Center, Disney will throw some dough at current users and help them transition to other services. "We will be communicating directly with customers about reimbursement for their handsets and their accessories," the company told us. "We'll also assist them find a new service and port their content over - if they like."

What's the financial damage this time around? Disney won't say. But it's fiscal year ends over the weekend, and an earning statement is just around the corner. ®

Intelligent flash storage arrays

More from The Register

next story
FCC, Google cast eye over millimetre wireless
The smaller the wave, the bigger 5G's chances of success
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.