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MySpace, O2 Hook Up; Service To Go Live In November, Will be Free Through 2007

By Staci D. Kramer - Wed 03 Oct 2007 02:45 PM PST

MySpace has its first European mobile deal beyond Vodafone (NYSE: VOD): a “partnership” with O2 being announced tonight. The mobile service is slated to launch in early November; to speed adoption, O2 users with data-enabled handsets—more than 80 percent of its customers—will have free use through 2007. O2 says, in an internal survey, its customers listed access to their social nets as the number one content priority after search. When the free data period ends, those who want to keep on using MySpace through O2 can choose from one of two plans: one for £7.50 a month (about $15) for unlimited browsing through a handset and one for £30 (about $61) for unlimited use through PC or as cell modem. Vodafone had the jump on MySpace Mobile with exclusives in the UK, France, Germany, Spain and Italy.

Late last month, Fox Interactive Media (NYSE: NWS) launched an ad-supported mobile edition of MySpace. But, for now, it’s limited to domestic U.S. so isn’t an option in the UK.

James adds: This is the way deals should be done. It’s not exclusive, and it’s not charging the customer for something they can get for free online. O2 is simply using MySpace to promote its data services, hoping that as people get used to using MySpace on their mobile they’ll want to keep doing so—and it will also get them used to using the mobile internet and (hopefully) seeing value in that, another good thing for O2. MySpace should like the deal for the same reason—promotion. O2 UK has 15.8 million customers with access to its O2 Active portal, and will put a link for the MySpace deal on its What’s New section. Whatever the limits of operator portals, getting on one is so far the best way to attract mobile traffic.

Posted in: Companies, News Corp., Operators, O2, Countries, Europe, UK, Social Media


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2 Responses:
  • From Roger Grice Thu 04 Oct 2007 02:22 PM

    Can James justify his comment?  How can offering a service for free be good business? It’s free on the internet, because theres no billing system, but there is on mobile. Why reduce the opportunity to the lowest common denominator?  The MySpace deal has it’s own dynamics which means it may be justified, but, in general, this is not the way deals in mobile should be done.  This internet thinking, transfered to mobile.  Ask the millions of investors who lost money in internet follies, whether this is the way deals should be done.

  • From James Quintana Pearce Thu 04 Oct 2007 06:10 PM

    MySpace is free on the internet because if it had required payment no-one would have used it. News Corp still thought it was worth $580 million.

    To clarify, I was referring specifically to mobile deals by big internet brands. These brands made their name by offering freely available and free services and looking for revenue from other sources, but when they launched a mobile feature they tended to make them exclusive, and to charge for them. If they’ve worked out how to generate revenue from their online services it’s a good idea to use similar business models on mobile, since that’s what their customers have come to expect.

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mocoNews.net is a news site covering the business of mobile content.

Rafat Ali
Publisher & Co-Editor

Staci D. Kramer
Co-Editor

Tricia Duryee
Principal Correspondent

Matt Kapko
Senior Entertainment Reporter

Dianne See Morrison
Contributing Writer

James Quintana Pearce
Contributing Writer

Robert Andrews
U.K. Editor

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