Disney MVNO: In Process of Evaluating


Disney (NYSE: DIS) CFO Thomas Staggs spoke this morning at Merrill Lynch Media and Entertainment Conference in Marina Del Ray, and AlleyInsider picks up on it: Staggs said Disney has seen “some challenges” on Disney MVNO, and is “in the process of evaluating where we sit.” He said it needs scale to be successful…it will analyze the MVNO during its budget process and “decide just what our plan is going forward.” Translated, it means the going’s tough and it may close, for all you know.



I am amazed that more of the MVNO's and investors did not look at the CLEC track record of the mid 90's before proceeding. In essesence it was the same play but with a wireless front end. Sure the mobile operators made some money with all the MVNO's that have recently launched but probably not enough to overcome the disctraction to their core businesses. Disney's MVNO management team lacked the experience to understand the lessons of the CLEC market. They also did not truly comprehend that parents are NOT going to switch out their phones so that their child can have a Mermaid themed phone. Disney is the most amazing marketing company in the world as evident when I go to Orlando. Great marketing though cannot overcome an MVNO's challenges when trying to acquire a mobile user. I suggest that Disney work with Motorola or some other handset vendor and launch a Disney phone with each operator. In addition they can develop an application and bundle Disney content that can be installed on any phone via over the air activation for those folks that do not want to switch handsets or operators.

steamboat willie

Lord, when will folks stop expecting Steve Wadsworth to launch anything successful??!!?? He's a nice guy, smart, but a MANAGER not a LEADER. He's never launched anything in his life. Good at layoffs though.

Andrew Deal

I have offered to help them diversify and expand their product offerings. Not heard back, so I guess they are doing just fine without new innovation.

Apart from that, all I can recommend is that they take a look at Cricket's growth


Of course it's going to fail…see Amp'd and ESPN Mobile. Same challenges some result.

Death. Taxes and MVNOs failing.

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