Disney Following The Content-Based MVNO Model: Hype, Slash Prices, Fail
from the it's-in-the-book dept
Our Spidey senses detect a pattern here: MVNO launches and announces a bunch of exciting new non-voice services that it says justify its premium prices, and it gets a whole lot of hype but few actual subscribers. Then, a few months later, it cuts its prices in a desperate attempt to gain users, before later going out of business or retooling its business model. Amp'd? Launch hype, check. price cuts, check. New business model? Check. Mobile ESPN: high-priced launch, then the price cuts, then, of course, failure. It's not clear if Disney learned anything from that debacle, having surged full speed ahead with its Disney Mobile MVNO for paranoid parents, even when the writing was on the wall for Mobile ESPN. Given the pattern, it's hardly surprising to see Disney cutting its handset prices to try and attract more users. The company says it's part of a holiday-season promotion -- perhaps calling it a final-throw-of-the-dice promotion wasn't too attractive. It's getting increasingly difficult to understand why these sorts of companies think that they'll be able to lure users to their dedicated mobile services, and why that's a better idea than doing what they've always done -- be content providers and sell their content to whoever wants it.