The Death of Disney Mobile

[iDisney]

Taken from Engadget

Disney Mobile, R.I.P.: 2006 - 2007
Posted Sep 27th 2007 2:58PM by Chris Ziegler

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.

[Ian]

Not to be blunt about it, but Disney needs to stop wasting time and money on this dumb stuff that they know nothing about.

I know Iger considers himself a "technology CEO", but he clearly is out of his element in many cases.

This was one of them. Stupid idea that was doomed to fail from the start.

[IloveDisney71]

Not to be blunt about it, but Disney needs to stop wasting time and money on this dumb stuff that they know nothing about.

I know Iger considers himself a "technology CEO", but he clearly is out of his element in many cases.

This was one of them. Stupid idea that was doomed to fail from the start.

I have to agree with this post. While I love all things Disney, I was never tempted to "buy into" this mobile venture.

[ElenitaB]

"Stupid" is a word I hesitate to use in most cases, but I will say that the poor handsets offered, the service provider (Sprint... I was actually counting down the days until I could drop them when Disney announced their new service) and the high costs they were charging all combined to condemn this service to an early grave.

Similarly, Apple might have seen more people buying an iPhone and signing up for phone service IF they chose a better service provider. I don't know about your corner of the country, but AT&T/Cingular in my part of the country is terrible! Until they improve drastically or Apple finds a different provider, I won't be getting an iPhone (and I would love one).

[PirateLover]

I don't know about your corner of the country, but AT&T/Cingular in my part of the country is terrible! Until they improve drastically or Apple finds a different provider, I won't be getting an iPhone (and I would love one).

Not to get too off topic but this is something that has struck me as really odd... I used to have great signal with Cingular, but ever since they became "The New AT&T" my service has been ATROCIOUS. I probably drop every other call, and often get no signal.

Back to the Disney Mobile thing, it never really struck me as being a lucrative venture in the first place, so I too am not shocked that it is folding.

[lockedoutlogic]

Here's an idea for the Diz people....

How about making more movies, tv shows, and rides????

People might get into those types of things with Disney slapped onto them....think?

Just another in the long line of stupidity that started with the purchase of Go.com....

I do still hold out hope that they will someday come up with a game that allows construction of disney themeparks..a la..rollercoaster tycoon...I will continue to dream for that one, though

[mickey&missy]

Not to be blunt about it, but Disney needs to stop wasting time and money on this dumb stuff that they know nothing about.

Here's an idea for the Diz people....

How about making more movies, tv shows, and rides????

I totally agree. It wasn't the brightest thing they ever did!

[GrumpyFan]

This was a big "What the...?" to me when they announced they were doing it. Admittedly, they had some great ideas and features that I would like to see on other providers' phones, but the whole idea of Diseny trying to be a Mobile provider just didn't make any sense to me.

[GrumpyFan]

I found the following on another site.

from blog.wired.com/business/2007/09 - By Terrence Russell

Yet another MVNO bites the dust. Disney Mobile announced today that it will be discontinuing wireless service for its customers on December 31st, 2007. Content and application downloads will be the first features to go dark for the wireless provider, effective immediately. The closure comes at a rough time for the MVNO business model as high profile entrants like Mobile ESPN and Amp'd Mobile have also had to close shop due to financial woes.

However, the closure doesn't mark the end of Disney's mobile aspirations, as company executives have announced that the move will ultimately facilitate a more profitable transition to its Family Center suite via another major wireless provider.
Steve Wadsworth, president of the Walt Disney Internet Group further explained the transition in a company release:

". . .the MVNO model has proven, as we've seen with other companies this past year, to be a difficult proposition in the hyper-competitive U.S. mobile phone market. In assessing our business model, we decided that changing strategies was a better alternative to pursue profitable growth in the mobile services area."

The Family Center suite offers a host of applications geared towards parental monitoring of mobile use including location based services, and predetermined limits for voice and data usage. At the time of posting Disney was not able to provide details on which U.S. wireless carrier it plans to collaborate with.

Leads me to two questions, 1)What is "The Family Center" and 2) Does this mean they're partnering or are selling the features to another carrier? AT&T maybe?

[JPL]

The family center allows parents to control number of minutes and text messages as well as times when their child can make and receive calls and text messages. It also features a tracking feature that allow parents to locate their child provided the phone is on.

But back to Disney Mobile Definately doomed to fail after the novelty wore off.

[iDisney]

I never thought that it was the best idea in the world, but I didn't expect it to go under so quickly either. They did have some innovative features though. Its always a shame to see Disney fail.

[Tekneek]

Disney is so desperate to "grow", as dictated by Wall Street, that they are going to be throwing everything they can against the wall in hopes that something will stick.

It is pretty clear to me that the MVNO model is a disaster. As far as I know, only MetroPCS has been able to be successful with it.

[DizneyRox]

Not surprising... I originally predicted this here.

[Tinkermom]

Ok, so don't flame me but we bought Disney Mobile phones for our family. I personally have loved mine, mainly because I love having all of the Disney ringtones/wallpaper. Whenever my phone rings people around me smile, including me. DH's ringtone is "Yo-Ho-Yo-Ho " and my kids are "It's a Small World" and some of my friends are "Mickey Mouse March". We also really like the GPS tracking for our kids.

Now, truth be told I actually wondered how long Disney Mobile would last. I am not surprised that it has gone under but I am surprised at how fast they pulled it. I was hoping to see some upgrading as they needed to stay competitive but obviously that never happened.

My question now is...
Anyone know where I can download Disney ringtones for another phone? If so which phones/services offer this?

[thrillme]

With all the other cell companies out there offering family plans I'm a little surprised they tackled this one. But a super idea would probably be getting into accessories, ringtones and mobile games.

I just wish I could find a cell phone that withstands dropping, washing, flushing, flying off the car hood and comes back to you when you call.

K

[GrumpyFan]

As an investor, this is just a little bit frustrating to me. There were lots of people in the Disney community, on this board and others, that were skeptical and some even predicted that this wouldn't work. What I wonder is why, if so many of us thought it was a less than great idea, would the financial "geniuses" and Disney execs even go forward with such an idea? Are we just skeptical, or maybe smarter than the so-called "financial/business experts"? And, shouldn't we all send a letter to Mr Iger and tell him to quit wasting time and money with the silly side-businesses and stick to what Disney has done best for decades, make movies, and build theme parks.

Sorry, I know it was a bit of a rant, but I just felt like I needed to get that off my chest.

I feel better now.

[Tekneek]

And, shouldn't we all send a letter to Mr Iger and tell him to quit wasting time and money with the silly side-businesses and stick to what Disney has done best for decades, make movies, and build theme parks.

Personally, I would settle for not using mothballed/shuttered attractions/restaurants as convention space or other special VIP space and return them to guests overall. I would prefer that they also have a moratorium on attractions based on movies/shows in order to force the greenlighting of some completely original concepts that exist only within one of the domestic parks. Disney is all about taking the easy road these days and that is not the path to greatness. The path of least resistance and risk is the road to mediocrity.

I am not surprised that it has gone under but I am surprised at how fast they pulled it.

They have little stomach for anything that is not a runaway hit. From my point of view, this applies to the entire Disney business right now.

[doombuggy]

To be honest, I haven't thought much about Disney mobile, period. I have a cell phone but don't use it much - I actually have it thru my mom. We have Sprint and she's in Philly and I'm in Orlando. I have had very little trouble with it (and it's nice I don't have to pay for it, just don't text me....)

Not to get too off topic but this is something that has struck me as really odd... I used to have great signal with Cingular, but ever since they became "The New AT&T" my service has been ATROCIOUS. I probably drop every other call, and often get no signal.

My dad had the opposite problem. He works at home now in Chester Co and that used to be his "bad spot" for the phone. Now it's fine...go figure (they have AT&T).

Ok, so don't flame me but we bought Disney Mobile phones for our family. I personally have loved mine, mainly because I love having all of the Disney ringtones/wallpaper. Whenever my phone rings people around me smile, including me. DH's ringtone is "Yo-Ho-Yo-Ho " and my kids are "It's a Small World" and some of my friends are "Mickey Mouse March". We also really like the GPS tracking for our kids.

My question now is...
Anyone know where I can download Disney ringtones for another phone? If so which phones/services offer this?

I wouldn't mind having some Disney ringtones & paper on my Katana 2......someone has to know where we can get these...

[LandFan]

"Similarly, Apple might have seen more people buying an iPhone and signing up for phone service IF they chose a better service provider. I don't know about your corner of the country, but AT&T/Cingular in my part of the country is terrible! Until they improve drastically or Apple finds a different provider, I won't be getting an iPhone (and I would love one).

I agree with the fact that these people need to pick better service providers - I would be stupid to leave Verizon (who has fabulous service) for either AT&T/cingular OR Sprint. Even though I would have liked an iPhone or a Disney phone product.

[Dixie Springs]

Dittos Ian. So many silly, expensive departures from their core businesses (theme parks & films), and they all end up in the dumpster. Sometimes, the "thinking outside the box" business cliche has adverse consequences. I say hire less MBA's and more Imagineers! I vote for Beastly Kingdom over Disney Savings & Loan.