Thursday, September 28, 2006
Mobile ESPN's Fallout
ESPN's announcement that it's shuttering its mobile offering was expected. But what does it mean for other emerging MVNOs like Helio and Amp'd? Perhaps the biggest lesson: consumers aren't going to shell out money to buy phones for niche content. Appealing to a demographic -- as Disney Mobile does, complete with Disney-styled phones is one thing; telling somebody to build their entire persona around sports is another. Virgin Mobile is profitable and has more than 3 million customers because it appeals to young people, not because it's touting specific content. Also, size does matter: when you invest a combined total of $150 million in Mobile ESPN and Disney Mobile, and ESPN pulls in only 30,000 subscribers, you're not long for this world.
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