ESPN has announced that it would shut down its ESPN Mobile service, following a poor response from consumers.
ESPN said on September 28 2006 that it would close its ESPN Mobile service by the end of 2006, as it couldn't gather many subscribers. Mobile ESPN, a virtual mobile network provider, uses an existing cell phone network to provide sports related content to its subscribers.
General manger of Mobile ESPN, Manish Jha said that the firm learned that consumers do not switch mobile operators on the basis of entertainment services they offer. Jha confessed that they couldn't reach a comfort zone while running the services. He also admitted that it's not easy to change standards in this industry.
Mobile ESPN was formed in collaboration with Disney Mobile and uses Sprint for offering cellular services. Walt Disney recently unveiled that they spent around US$ 150 Million towards the development of mobile ESPN & Disney Mobile.
Main reason for this shut down is considered to be high costs involved in using this service. Mobile ESPN consumers had to buy special handsets priced up to US$ 199, designed specifically for the service in addition.
However, ESPN will continue its critically acclaimed award-winning service as an add-on to existing mobile operators. It aims to make the service similar to present Mobile ESPN service.
"Brand doesn't always matter when it comes to choosing mobile service. The demise of ESPN Mobile has shown exactly that. One needs to provide a service, which gives customer a reliable & cost-effective solution for survival in this industry. You can't expect consumers to switch operators just because you offer live scores on mobile phones", said an analyst at RNCOS.
Purchase cost of the handsets will be refunded to customers, as they won't be of any use once ESPN discontinues its service. Only one-third of employees will remain in ESPN mobile unit after shutting downs the service.
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