Clearwire Media Exec Leaves; Is The WiMax Company Changing Its Content Strategy?
Clearwire’s content division, which has been building a web portal for its wireless broadband service, has lost its engineering leader and may be heading towards a restructuring, mocoNews has learned from people familiar with the situation.
SEE ALSO: Clearwire Launches WiMax In Atlanta—Its Largest City Yet
While the changes are in part a sign of the times, they may hint at a larger shift for the company’s overall content strategy. Clearwire (NSDQ: CLWR) could decide to offload the arduous task to Google (NSDQ: GOOG), which invested $500 million into the company for the right to provide some services to the network. So far, it doesn’t appear that any decision has been made, and the departure of Vincent Vu, who was the division’s head of engineering, was a mutual decision, according to sources, who say he disagreed with the company’s direction.
The question is what’s next for the Santa Monica, Calif.-based group, which was formed after Clearwire hired employees from Bankrupt MVNO Amp’d? Called ClearMedia, the team is responsible for inking content partnerships for the company’s online portal, Clear365: life goes online. But now those efforts seem to be in conflict, or at least overlap with the deal Clearwire made with Google.
As part of the search engine’s investment, Google was given the right to develop internet and advertising services and applications for Clearwire’s WiMax devices, including being the default search provider. In addition, Clearwire agreed to use Google’s Android operating system for future voice and data devices. A Clearwire spokeswoman declined to comment on particular individuals, but said that the ClearMedia division, which was operating independently until recently, has been integrated into the core business. While she would not say if more changes were coming for the unit, she emphasized that it is “an important part of Clear services.”
Change would not be unexpected. Clearwire hired Bill Morrow as CEO in March, and he has already made a number of high-level executive moves. Likely, he can’t afford to waste money supporting non-essential divisions when the company’s survival may hinge on its ability to build out its 4G network faster than the competition. Besides, the portal today is little more than a landing page for any internet service provider. Users can login to access a standard set of services, such as email and calendar (which Google is already hosting). It also has a variety of standard content sources, including news, entertainment, sports, music and games. Google is the default search engine, and people can also access Hulu.com to watch the latest TV programming. But it’s the same content you get directly from those two sites. It’s unclear how many employees remain in the division, but sources say the head of content, Seth Cummings, is still serving as general manager and EVP.
Originally, the concept of the portal was not to just be another news aggregator, but to be a location where users could purchase content once—like a TV show—and then view it on the phone, a laptop or at home streamed through the TV set-top box. That philosophy fits with Clearwire’s network plans, which will allow people to pay for broadband access once for the home and on the go through a variety of devices. However, the company may have bit off too much, too early. Handing it over to Google would mean giving up some control, but may not be such a bad idea, especially since Google was willing to pay $500 million for the right, and its first obligation is to build the network.
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