Potential and Pitfalls for Playboy on 3G
“We know what kind of contents sell, we know what the customers want and we can create a great user experience for the users on the networks,” says Playboy.com’s VP of Global Licensing, Markus Grindel, talking to Wireless Watch Japan in Part 2 of our exclusive video coverage from the 3G Mobile Forum 2004. With adult content helping kick-start and then drive the VHS and DVD revolutions, estimates of a $4-7 billion market for this content category in the wireless space in 2006 don’t seem far-fetched at all. But a number of roadblocks, including carrier technologies, billing and DRM pose significant hurdles as well. “Right now its very hard for me to determine if someone receives an image from us if that image is being sent to someone else. How old is that person.. I don’t know, and that’s a key factor to figure out,” says Grindel. Full Program Run-time 12:47
“The single biggest benefit that was discovered in Japan was that you need to be fair in sharing the revenues with the content developer. It is not fair to say to a Disney or a CNN, ‘Give me half your money, and then I will put you on my network.’ DoCoMo approached this with the rough idea they would like to keep 10% and give the content developer 90%,” says 
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Tune in for a WWJ exclusive year-end interview with IDC Japan Communication Research Division’s Senior Analyst Michito (Mitch) Kimura. In this video program, Kimura, a veteran IDC analyst, casts his eyes on the ups and downs over the last year in the world of wireless and takes a look at prospects for 2004. He details the strategy at Japan’s three carriers, NTT DoCoMo, KDDI, and Vodafone, and offers his view on the prospects for Japan’s ever-surging content business. Kimura-san also gave us his perspective on the continued evolution of 3G, handset replacement cycles, and – a favorite topic of ours – Japan’s first packet pricing war. 
Wireless Watch Japan attended NTT DoCoMo’s December 15 press conference demonstrating the first phones to feature the Sony developed “Felica” peer-to-peer payment system. To debit the cash stored on the phone’s IC chip, all you do is swipe the handset in front of a reader; more cash can be downloaded via the i-mode network. The trial, using 2,500 each of the N504iC and SO504iC handsets (engineered by NEC and Sony) will run from today and until mid-2004, when full commercial service is expected to start. DoCoMo have lined up 27 e-payment service providers, including banks, convenience stores, TV broadcasters, game software publishers, and a retail ticketing outlet. There are already 17 million Japanese happily using Felica-based IC cards for train tickets and convenience store payments, many of whom have – surprise! – cell phones. We think the synergy and revenue potential of the two technologies is obvious – and so do DoCoMo’s accountants. Watch our first-on-the Web video report from Monday’s press event – and rethink your i-mode forecasts. Full Program Run-time 3:00
DoCoMo Chieftain Tachikawa gave his final press conference of the year and looked happier and more relaxed than we’ve seen him for some time. And he should. After good first half financials and FOMA finally taking off, he was able to give a good spin on DoCoMo’s performance and managed to sling an arrow at Microsoft, as only a spin-off from a monopoly can! Japan’s phone market unexpectedly achieved solid 1H growth; net additions were almost the same 1H 03. 2H was down, but overall growth for DoCoMo will be 80 percent of 02. Japan’s phone market is NOT saturated. DoCoMo still thinks it will achieve 8 percent growth. Non-voice is growing, as well as voice. Japan’s penetration rate still lower than Europe. DoCoMo still sees growth opportunities. Full Program Run-time 20:24
Japan is famous for cool camera-phones and its massive vending machine industry, put them together and you’ve got a significant business opportunity. We visited Pinchange Co. Ltd, and got a step-by-step demo. of their lean, mean Print Club Sticker making vending machine. Spun out of Panasonic’s Central Research Institute in 2001, the company is making a digital photo printing unit thats sure to follow in the foot steps of digital cameras – on phones or otherwise – around the world. By allowing users to input their photos from almost any type of memory card or even straight from the handset IR Port, we think they’ve tapped into a global goldmine. But thats not all we saw, they also gave us a sneak preview at a prototype LED virtual keyboard for mobile devices set to hit the streets here in 2004.
It’s sassy, not clunky – but analog only. If this sounds like an ode to Japan’s first Tellycelly, please make your call swift: The TV will only run about an hour before the batteries poop, but the sales potential is, we think, killer. Vodafone’s V601N [
Do you have BREW contents that you want to put into 10 million cellphone browsers? We know somebody who wants to hear from you. Spun out of trading powerhouse Nissho Iwai and backed by camera giant Olympus, ITX E-Globaledge Corp. is a small company hungry to meet U.S., Korean and European ventures to introduce your BREW content, and your cutting-edge soft- and hardware, to a company with a huge appetite: KDDI. More than just a go-between to help customize ideas for the Japanese market, ITX also creates its own content. More interestingly, it recently put $4 million into a Seattle-based venture blending XML. Full Program Run-time 18:28
Japan is the nation of early adopters for mobile, but there’s one consumer app. that went flat and is now undergoing heart massage by some of the country’s biggest and best companies: Telematics is the name, and subscribers is the game. 2004 is supposed to be the year when Japanese Telematics Ver.2 gets cranked into first gear and out of the highway rest area (it was also supposed to happen this year.. shuuush!) Japanese Telematics comes in three main flavors, and in this program you’ll get a taste of two of them. We managed to go for a ride on Toyota’s G-Book and learn more about their new sense of community offering. And we interviewed Nissan –which has great future plans you’ll get to virtually-virtually test drive– about City Browse. Full Program Run-time 21:58