Mobile ESPN Fumbles...Is Disney Next? Or will Apple's MVNO Get the Content? Plus: Why Cabela's Should Acquire the ESPN MVNO Assets.
The news of today in mobile is that ESPN is cutting it's Mobile ESPN MVNO (mobile virtual network operator) service. I'm sure this was a supervise to many, however, a long list of industry pundits have been on the Mobile ESPN deathwatch almost since its birth.![]()
Many will drumbeat this as a "lost game", however, I think that this was a merely a First Quarter fumble and ESPN is still poised to win the mobile and wireless sports content game.
(What I do know is that a lot of bloggers -- including myself -- will use this as an opportunity to write some really bad sports cliches in their posts <grin>!)
A notice to the Mobile ESPN Web site today states:
"Thank you for your support of Mobile ESPN. We have been proud to provide fans like you the best wireless sports content experience.
We have, however, decided to change the direction of Mobile ESPN. As of December 31, 2006, Mobile ESPN will cease its wireless service...
...good news is the Mobile ESPN content you have come to enjoy and expect will soon be available through the service of another nationwide wireless provider."
Hmmm. So let's look at some scenarios moving forward that explain today's actions. Comment back what scenario you think is most likely, or add your own:
- Disney/ESPN thinking: Let's cut all the branding, billing and MVNO overhead and pitch it back upstream to Sprint for an exclusive carrier-on-deck content deal.
- Disney/ESPN thinking: Let's cut all the branding, billing and MVNO overhead and pitch it out to all the carriers for a long-term non-exclusive carrier-off-deck subscription fees and/or consumption "taxes".
- Disney/ESPN/Apple thinking: Apple will have their "MVNO/i-phone" out in the next year...we'll scuttle Disney's MVNO and roll ESPN/Disney content in to an Apple MVNO exclusive. An iTunes/Disney/ESPN content conglomerate that only Elliot Spitzer could stop. After all, the only reason Dad will move the whole famdamily over to an Apple MVNO for the Disney iTunes is if there's "something in it for me". (Not that I would know <grin>!)
Anyway, one could easily get carried away with trying to "over-guess" this.
Bottom line is really simple: not enough subscribers. For this, however, there will be no simple answer. (Yes, one will be given, however, we know it ain't always simple to explain away these things.)
Was Sprint the wrong partner? This is doubtful, they were clearly the best network for pushing the 3G video content.
Was the phone selection too expensive or not age-demographic appropriate? Again, not clear. The phones were great, however, amid the Motorola Razr tsunami and a Windows Mobile 5.0 launch, the initially expensive Sanyo was a brand and a price that sports fans may have found too much to digest to switch carriers for.
My guess is it simply came down to the paradigm shift and timing of the content distribution. Should ESPN be available for fees and subscriptions to all major US carriers? Hell yes. Just as ESPN content is not exclusively restricted to just cable operators and not available to DirectTV satellite providers. And from a paradigm shift, we're still trying to piece together the social aspects of why MySpace -- with a clearly inferior user-interface and kludgy functionality -- blew the pants off of Friendster, Ryze, Tribe, Facebook, Xanga etc.
So does this spell disaster for the myriad of MVNO's out there today? Yes and no. Disney may be up the same creek. They're probably better off long-term focusing on making their content as "widely" distributed over as many carriers as possible than "exclusive" deals.
Cabela's MVNO Would Work
I've been joking around for at least three years now that Cabela's should startup an MVNO. My partners would be stoked just so I'd quit yammering about it. The social demographics of Cabela's customers are compelling and they have the distribution channels nailed. I would soooo love to be sitting in a London coffee shop at some trade show talking on an Advantage Camo cell phone. The stares from the London business elite alone would be worth a 30% premium price for the phone.
The Salt Lake City Cabela's store pulled in more visitors than the Mormon Temple in its first year. Cabela's is an Internet commerce, direct-mail catalogue, retail success story like no other right now:
- Cabela's is the nation's largest direct marketer
- Cabela's is the leading specialty retailer for
- hunting, fishing and camping (the nation's pastime)
- (more folks do these activities than get ESPN on cable, that's for sure)
Hunting, fishing and camping are social-oriented lifestyle brands that Cabela's can easily capitalize on, more than content like Disney, ESPN, or the Outdoor Channel for that matter.
Reno has promised our collective first-born sons (well at least their college education funds in my case <grin>) to get Cabela's to open a retail location here.
I can hope by the time it's open here they've acquired the ESPN MVNO assets and are offering cell phones in Wetland, Advatage and Scent-Lok! If you're from Cabela's and are reading this...give me a call. I've got three years of thought in to this one!
