(keitai-l) Re: Content provider profits

Philip,

Here is one estimate of the size of the japanese mobile contents market in 
billions of yen for 2002:
         Total   150
         Ringing tones    80
         Screen savers    25-30
         Games    15-20
         Other entertainment      5-10
         Other contents   10-15
         Shopping                30-40
   Cybird is not the largest content provider and certainly not the most 
profitable (but it may be in the future). Xing and giga networks have more 
than 5 million subscribers and bandai and disney and possibly index also 
probably have more than cybird. the profits for individual firms can be 
obtained from those publicly listed firms who only do mobile content 
(cybird, index, faith and many more). Subscriber numbers are also not hard 
to find for other firms as most firms will tell you. profits for non-listed 
firms can be estimated by knowing the number of subscribers and 
understanding the cost structure  of their services. The top ringing tone 
providers have margins that are probably higher than 70%. leading providers 
of screen savers and games are also very profitable. Most official shopping 
sites are profitable. Outside of the entertainment and shopping contents 
there are fewer success stories. but they include many retail outlets 
sending coupons (tsutaya, jeansmate, first kitchen), toshiba, JR, Guru Navi 
and several map providers in navigation services, and many, many 
manufacturing firms who have realized cost savings and faster customer 
response by having their employees access information on their mobile phones.


>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.

You are not going to find this information in a handy table. Andrea, 
Gerhard, I, and others have spent the last three years gathering this 
information. We are reacting the way we are because many people have used 
the 20% figure to say the Japanese mobile Internet is unsuccessful. And 
your question suggests that the profitability of the mobile Internet is 
dubious (albeit I realize you don't think this). As Gerhard said, firms 
offer these services because they are profitable. Just because Japanese 
banks and some large electronic firms are stupid enough to continue 
offering services in spite of no profitability does not mean that all 
Japanese firms are stupid. Enron and a few other US firms also fooled 
people. but in the end, you can't fool everyone and you have to provide 
services that make money.
cheers,
jeff funk
P.S. I remember reading a reaction by Natsuno to the one hundred millionth 
time he was asked about the applicability of the mobile Internet to the 
West: "Japanese are not aliens." Many times I have also wanted to answer 
that question in the same way.