Disney Will Shut Down Cellphone Service
Business Law
[##_1L|1111371765.jpg|width="69" height="80" alt=""|_##]A year after shuttering its ESPN cellphone company, Walt Disney Co. said it is closing its Disney cellphone service. Walt Disney launched Mobile ESPN and Disney Mobile last year as mobile virtual network operators, or MVNOs. Under that business model, the Burbank, Calif., company leased wireless spectrum from Sprint Nextel Corp. and sold its cellphone service directly to customers. But in the competitive U.S. cellphone market, Disney struggled in its fight against the major carriers.
Disney announced in September 2006 that it was closing Mobile ESPN, eight months after its debut. The company initially remained optimistic about its Disney-branded service, which sold phones featuring Disney content and services aimed at children and their parents. However, Disney failed to make headway with the big-box retailers and find outlets to sell its phones and related services.
Disney will instead license its content to bigger carriers to sell. Earlier this year, it forged a partnership with Verizon Wireless, which is owned by Verizon Communications Inc. and Vodafone Group PLC, to sell ESPN sports news and video. Disney said yesterday it is considering offering some of its Disney-branded services through a partnership with a major carrier. Disney Mobile included services that let parents locate their kids as well as content such as ring tones and games with Mickey Mouse and other Disney stars.
Disney isn't the only company to stumble in the MVNO arena. Amp'd Mobile Inc. sought Chapter 11 bankruptcy-court protection this year, after its youth-focused service burned through $350 million in start-up funding.
Disney declined to comment on how much it had invested in its MVNOs or the cost of closing them. During a conference call in August 2006, Disney Chief Executive Bob Iger said the company was investing $150 million in Mobile ESPN in 2006. After announcing its closure last September, Disney Chief Financial Officer Tom Staggs told an analysts conference that the cost of closing it would be about $30 million.
Related listings
-
Wal-Mart expands $4 prescription drug program
Business Law 09/27/2007Wal-Mart Stores Inc said on Thursday it has added more medicine to its $4 prescription program, including certain new generic drugs, as part of its push to expand its health and wellness services.The world's largest retailer said it will make availab...
-
Mutual-Fund Suit Vs Citigroup Dismissed
Business Law 09/27/2007[##_1L|1062093828.jpg|width="120" height="88" alt=""|_##]A federal judge in New York on Wednesday dismissed a lawsuit against Citigroup Inc. that alleged it didn't disclose to mutual-fund customers millions of dollars in savings allegedly pocketed by...
-
Vonage Gets Another Black Eye
Business Law 09/26/2007[##_1L|1394250783.jpg|width="120" height="138" alt=""|_##]For Vonage, things have gone from bad to worse. On Sept. 25, a jury found that Vonage infringed on Sprint Nextel's patents. It asked Vonage to pay $69.5 million in damages and a 5% royalty rat...
Victorville CA DUI defense Attorneys
The outcome of a DUI defense will have a long-term effect on anyone’s life, making the decision to receive legal representation an easy one. The fact is, most people accused of a DUI are first offenders with no criminal background. Whether this is your first run in with the law or you have had previous convictions, you are in need of a DUI defense attorney.
The charges you are facing for a DUI range from fines, a 12-month suspension on your license and worst-case scenario, prison time. Your attorney will be able to analyze your situation to decide the best way to go about your case.
Our attorneys know the tricky ways to challenge all of the DUI tests and know how to claim improper collection of evidence. We will be able to negotiate on your behalf and free you from charges and help you keep your drivers license. The DUI process can last up to several months, we can make this process easier on you. .