Disney Freezes Plan for UK Mobile Virtual Network Operator
A ZDNet report stated today that Disney’s plan to launch a family-friendly mobile virtual network has been put on hold indefinitely across the Atlantic. The media giant launched a mobile virtual network operator (MVNO) in the US earlier this year that allows the sharing of calls and texts among family members, prevents child access to certain services, and features a parental tracking service.
Disney had intended to offer an identical MVNO in the UK using wireless provider O2’s network.
A Disney spokeswoman explained that the decision to freeze the plan was the result of a “rapidly changing competitive environment” in the UK. She added that “Retail distribution outlets in particular have consolidated in recent weeks, which has impacted our distribution opportunities.”
Others in the mobile industry have suggested that slow reception of the brand’s services abroad have caused it to hold off on the UK launch. Alex Zadvorny, senior analyst at Analysys, told ZDNet, “The (U.K. market) is quite saturated and maybe there’s some experience in the US that’s putting them off… They have a lot of content and they can push that without an MVNO.”
While Disney’s family-sharing plan is appealing, analysts have pointed out that it caps spending while other companies in the industry are finding ways to get people to spend more.
The Disney spokeswoman stated that the company is not abandoning its mobile efforts in the UK and “will continue to evaluate the U.K. retail landscape for mobile services and remain positioned to move on this initiative as the environment becomes more conducive.”
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