Another Innovative MVNO Falls (Disney Mobile)

Disney announced yesterday that their wireless service will be shut down at the end of the year. It's too bad (though not surprising) to see them go. Many of their services and offerings to families (parents and kids included) seemed to really hit the mark.

Like many other MVNO's, they faced an uphill (and costly) battle to acquire customers in an environment in which wireless subscribers mostly care about quality of network (where MVNO's by definition can't differentiate) and perceived value (low cost minutes and data plan) are the most important factors for subscribers when selecting a provider. Too few (though an increasing number) view other services or entertainment as key criteria in selecting a provider.

I keep wondering when or if carriers will adopt the strategy of brands within their larger brand. With as many MVNO's as have been launched, it's clear that media companies want more than the carriers are offering now in terms of platforms/technology/services to support their efforts to engage with their consumers in the mobile environment. MVNO's are too costly. Incumbents are offering too little.

Categories: