Moves brand to Orange as "exclusive partner"
Ad-funded MVNO Blyk will cease operating as an MVNO in the UK, and will move its customer base to Orange outright, with the Blyk brand existing with Orange's operational base. The move mirrors Blyk’s recent news that it will partner with Vodafone to bring the Blyk brand and media model to consumers and advertisers in the Netherlands.
Blyk has a symbolic significance within the mobile industry beyond its actual presence, as it was the first operation that attempted to change the way it attracted customers, and how those customers accessed services. Although much has been made of its ad-sponsored services, it also sought out a new demgraphic, developing a much more socially-connected user base.
Its demise as a separate entity doesn't mean that giving away services in exchange for exposure to ad campaigns could never work, but it is certain to be interpreted in that light by many. Pekka Ala-Pietilä, however, said that the model is now "proven." It is not, though, a proven success.
“For Blyk, the MVNO enabled us to build an optimal user experience for young people while at the same time providing an engaged audience, accountability and overall media effectiveness for advertisers. The Blyk media model is now proven and we are accelerating Blyk’s growth through operator partnerships.” said Pekka Ala-Pietilä, Blyk co-founder and CEO. “We’ve had an excellent relationship with Orange UK in our capacity as an MVNO and our move to operator partnering naturally served to propel the evolution of this relationship. We see this as a major building block for Blyk’s international expansion and continued growth.”
Blyk’s MVNO operation ends in the UK on 26th August. It says that it has proven that sending timely, interesting and relevant messages to young people from brands builds high levels of engagement and illicits high response and action rates. Going forward Orange says will continue to offer brands this direct communication.
Marc Overton, VP of Wholesale, Business Development & Partnerships, Orange UK says, “Orange has enjoyed a close working relationship with Blyk since it first entered the market in 2007. It is a progressive, innovative, and exciting company and one which matches a proven capability with Orange’s ambition to grow its media business in order to offer a portfolio of opportunities for consumers and media houses alike. Integrating Blyk’s capabilities into our own will allow Orange customers access to great brand offers, benefits and promotions in a timely fashion which are specifically tailored and relevant to them.”