O2 Says Disney Content Deal In Place Despite Mobile Delay

LONDON -(Dow Jones)- Mobile phone operator O2, a subsidiary of Telefonica, said Monday that its media content deal with the Walt Disney remains intact, despite Disney's decision to postpone its launch of a mobile phone service in the UK.

A spokesman for 02 said that despite Disney delaying the launch of a family-targeted mobile phone service that would run over O2's telecommunications network, the two companies will continue to sell exclusive content, such as ring tones and movie clips, to UK. customers.

"We have already benefitted from exclusive access to Pirates of the Caribbean 2 content and will continue to work with them for other forthcoming films," the spokesman said.

Earlier Monday, Walt Disney said that due to a rapidly changing competitive environment in the UK. mobile phone market, it had decided to postpone the launch of its mobile phone service.

"Retail distribution outlets in particular have consolidated in recent weeks, which has impacted our distribution opportunities," Disney said in a statement. "We will continue to evaluate the UK. retail landscape for mobile services and remain positioned to move on this initiative as the environment becomes more conducive."

Company Web site: http://www.02.co.uk

-By Daniel Thomas, Dow Jones Newswires; 44-20-7842-9264; dan.thomas@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 14th August 2006