(keitai-l) Re: Content provider profits

From: Philip Sidel <psidel_at_iuj.ac.jp>
Date: 08/13/03
Message-Id: <5.1.0.14.0.20030813153729.01608db8@mail.iuj.ac.jp>
Hello,

Ok.  Let me ask this a little less quickly this time.  That obviously 
didn't work.

Most businesses have to justify all of the expenses in their budgets.  Even 
though from a sheer cash flow basis a content or service site isn't 
generating revenues, if there are increases in customer loyalty, 
satisfaction, brand recognition, etc.. (all which have monetary values 
associated with them) that business will continue.  Wells Fargo shut down 
their wireless site in the US, because of a lack of customer interest, 
while their online site remains best in class.  Obviously, the increases in 
customer loyalty, satisfaction, etc... didn't offset the costs of 
development and maintenance, and the project got shut down... Because I 
don't have good information on what mobile businesses are shutting their 
doors each day (if anyone has this type of information, I'd love it!!), I'd 
like to get a general understanding of how companies are faring in their 
efforts from the profitability side.

It may be meaningless on an industry level, but for an individual marketing 
exec trying to make the decision of just how much to invest in a mobile 
presence, I think any benchmark is considered helpful.  How about this, 
forget the profitability question for a second.  Do either of you (or 
anyone else on this list) have information on subscriber levels for 
different types of business categories or individual businesses?  Does 
anyone track this or are they compelled to report this somewhere?  Is there 
a report or organization tracking this regularly?  Cybird says that they 
have 3.4 million subscribers as of march 2003, Xavel has also publicly 
quoted subscription numbers for Girlswalker.  Again, if an exec in the 
consumer products sector can get a sense of how similar companies in japan 
or other markets are faring in terms of subscribers, etc... that would be 
great information to have.

So back to you all.  Any legitimate sources of information on either 
subscription levels across different sites or groups of sites, 
profitability measures for these, or even any sites tracking mobile content 
or service sites shutting down?  Any and all feedback would be 
appreciated...except more folks telling me my questions are meaningless.... 
one a day is enough.

--Philip

At 03:24 PM 8/13/2003 +0900, you wrote:

>Jeffrey L. Funk wrote:
>  > Hello everyone,
>  > the percentage of profitable content businesses is a fairly meaningless
>  > number. there are always a large percentage of firms that don't make money
>  > particularly during the early years of an industry. for example, there 
> were
>  > 75 manufacturers of automobiles in the US in 1925, most of whom were
>  > clearly not profitable.
>
>I totally agree with Jeff! Here are some more numbers:
>
>US Telegraph companies:
>1855: 50 companies
>1857:  6 companies
>1866:  1 company dominates
>
>US Railroads:
>1920: 186 major railroad companies
>1980:  39 major railroad companies
>
>US Cars:
>1908: 253 car companies
>1920: 108 car companies
>1929: 80% of cars are produced by Chrysler, Ford or GM
>
>PCs:
>1988:  45 PC companies
>1993: 100 PC companies
>2003: 51% of US market = Dell & HP
>
>The mobile industry is in the early stage, and much consolidation
>will come. As Jeff says, most of the i-mode industry will in the
>long run not be selling ringing tones and cartoon characters, or
>dating services of some kind. As I said in the previous email
>selling of JR-Tokkai Shinkansen tickets at US$ 125 a pop is not
>trivial, and it's off the DoCoMo balance sheet and off the DoCoMo
>statistics, and the profits are probably hidden elsewhere in
>JR-Tokkai's accounting. Their i-mode services even might appear
>as a loss-making IT-cost-center in the accounting.
>
>Gerhard
>---------------------------------------------------------------------
>Gerhard Fasol, PhD                         Eurotechnology Japan K. K.
>fasol_at_eurotechnology.com               http://www.eurotechnology.com/
>---------------------------------------------------------------------
>Find us in "IBM developerWorks" and in "Chemical & Engineering News":
>http://www-106.ibm.com/developerworks/wireless/library/wi-elite8.html
>http://pubs.acs.org/cen/topstory/8049/8049bus1.html
>---------------------------------------------------------------------
>
>
>This mail was sent to address psidel@iuj.ac.jp
>Need archives? How to unsubscribe? http://www.appelsiini.net/keitai-l/
Received on Wed Aug 13 10:13:20 2003