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- Gary Gentile's Column, All of Newsvine
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 | Rumor: Disney Mobile to cease operations | paidContent.org | Thu Sep 27 | 0 |
| Disney to End U.S.-Based MVNO Operations | Business Wire | Thu Sep 27 | 0 |
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{"commentId":1058791,"authorDomain":"miguel"}
dah... right move but for the wrong reasons...
I was expecting the article to go something like "[..], but it was having a terrible influence on kids that ended up spending their whole life on their cellphone."
Instead, they said "[..] but that it was having problems getting the phone into large retailers".
Good one.
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- 1 vote
#1 - Thu Sep 27, 2007 11:01 PM EDT{"commentId":1059180,"authorDomain":"kikaiju"}
It's true. Places like Best Buy and Circuit City are tightly allied with one or two major carriers and one or two of the big MVNOs.
Circuit City carries Verizon and maybe Virgin. Too bad for you if you want somebody else and Disney is firmly in the "somebody else" tier. Best Buy and Radio Shack are similar to Circuit City. In fact, none of the big phone retailers sell ALL the brands.
If you are a Disney, you want to get the product in the stores where families shop and apparently they could not do that either because it would cost a lot or because the retailers already had contracts in place.
The bigger issue is that MVNOs aren't profitable enough unless they have huge market share, and getting that takes a lot of effort and a lean operation. Disney -and ESPN's MVNO before it- started with a fat operation and products that had niche appeal rather than mass appeal. That's a business model doomed from the start.
The message here is that Sprint is going to have to make it cheaper to operate an MVNO (I know, they don't care if the MVNOs fail, but imagine a world in which Sprint did give a damn) and allow the MVNOs to piggyback on Sprint's brandname (Disney pay as you go, offered by Sprint!) and get placement in retail stores. This also means Sprint needs to clean up its reputation .... in fact what they should do is change their name and start over.
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