Viewpoint
Viewpoint

Viewpoint

Mobile Music Best Practices from Japan and Korea

While Japan’s music market is second only to the US, with $3.5 bn in CD sales, it ranks first in mobile music in terms of market size, service penetration and sophistication. Japanese record labels have managed a powerful comeback from their failure in the wild, MIDI ring tone-based 2G music market to massive success in the master-rights-based "Chaku-uta" 3G universe. They already own a 20-percent share of Japan’s $1-billion-plus mobile music market. How did they pull off this stunning achievement? The labels identified their core assets in the mobile universe: trust and convenience.

Editor’s Note: Today’s guest Viewpoint is based on "Mobile Music Best Practices from Japan and Korea," a 103-page report recently released by Vectis International. WWJ subscribers login to read the article and receive a special 10% discount coupon!!

Researched and written over a period of several months by Simon Bureau, Managing Director and Editor, and Benjamin Joffe, Japan Market Analyst — two of the saviest mobile industry watchers in Asia — Vectis’ "Mobile Music Best Practices" provides 103 pages of sharp and critical analysis covering mobile music downloading as it has developed in the world’s top two wireless markets. With reference to carriers, content providers, networks, terminals, pricing, marketing and end-user behavior, "Mobile Music" is a must-read for anyone involved in planning and commercializing on-the-go music services anywhere.

Japanese TV Powers Up Over Fast Networks, 3G Phones

Japanese TV Powers Up Over Fast Networks, 3G Phones

Japan’s PoweredCom announced the start of a Video on Demand (VOD) distribution service over high capacity fiber optics broadband networks. Powered Theater will soft launch August 11. Full service should begin in mid-September. Tokyo Electric Power Company (TEPCO) is a partner in PoweredCom and very interested in seeing more traffic on their fiber optic networks. For this project, the company tied up with cell phone content provider Index Corps’ subsidiary Neo Index and Mitsubishi as a technology/programming partner.

In a separate development Tokyo Broadcasting System (TBS) and Culture Convenience Club, parent company of video rental giant Tsutaya, have put together a joint venture to distribute programming over Internet broadband networks, original DVDs and through mobile phones. Though few details are available the new company should start at the end of October. TBS owns a controlling interest of 51 percent and CCC 49 percent. TBS also recently partnered with ColorZip Japan for a late-summer launch of TV applications using ColorZip’s server based ColorCode code recognition system linking TV broadcasts to related digital content for sponsored websites, music samples, contests and prize drawings.

Mobile Commerce Surges in Japan over Wireless Networks

Mobile Commerce Surges in Japan over Wireless NetworksMobile commerce over cell phones jumped 25 percent last fiscal year to around 971 billion yen ($8.8 billion) according to a survey on e-business just released by Japan’s Ministry of Economy, Trade and Industry [.pdf in Japanese]. Covering all of fiscal 2004 (which in Japan ended March ’05), the survey showed wireless purchases of books and music had grown by 85 percent from virtually nothing the previous year to 330 million yen ($3 million). Shopping for clothing and accessories over the smallest screen accelerated 79 percent, taking in 150 hundred million yen ($1.3 million).

Researchers for the report noted that consumers are comfortable with shopping on the Web, grouping it with other mainstream retail experiences. Individual online (Internet) purchases rose nearly 29 percent to 5.64 trillion yen in fiscal ’04. This confidence has users embracing the anytime, anywhere convenience of the mobile Web in addition to — and even sometimes preferably to – the PC experience.

ColorZip Partners with TV Broadcasters for Mobile Marketing

ColorZip Partners with TV Broadcasters for Mobile MarketingNow that TV viewing has jumped off the couch and onto the streets over wireless handsets, Japanese TV broadcasters are scrambling to adapt content and programming to mobile viewing. Colorzip Japan is introducing a Technicolor technology that could bring TV mobile marketing into focus for broadcasters.

Colorzip Japan recently announced it is working with strategic partners Fuji Television Network, and Tokyo Broadcasting System (TBS) on a late-summer launch of TV applications for its two-dimensional server based code recognition system, ColorCode, linking TV broadcasts to related digital content for sponsored websites, music samples, contests and prize drawings.

The technology could eventually provide easy access to TV programming in progress or rebroadcasts via subscriptions. For now though, the developers are looking at links to mobile program websites as well as contests and promotions. Colorzip Japan CEO Christopher Craney told WWJ, “TV companies are working on this initially as a way to promote their programming.” (Evan Owens, Director and CTO, made a presentation about this technology at Mobile Monday Tokyo’s April Event — Ed.).

Suica IC Cards Make a Splash with Electronic Posters

Suica IC Cards Make a Splash with Electronic PostersJapanese IC cards have pop posters grooving to a techno beat this summer. Fans of hunky J-Pop star Shogo Hamada just flash their Suica rechargeable RFID train commuter card at specially designed high-tech poster displays around town to reserve a copy of his newest album, My First Love. Japanese are calling this new interactive ad medium, “Denki Posta” (electronic posters). Popping up in all sorts of variations, most have plasma-display panels and flat-panel speakers.

Suica’s IC card technology has been a runaway hit in Japan. More than ten million are in circulation around the country and the service has brought in numerous retail partners for cashless payments at shops and restaurants within the stations. It was developed by Sony together with Japan Railways East Corporation and will soon migrate from hands to handsets. In January 2006, DoCoMo plans to combine their Felica smart card e-money platform with the Suica commuter card into a series of mobile handsets.

Motorola Debuts 3G Smartphone in Japan

Motorola Debuts 3G Smartphone in JapanDoCoMo’s hybrid 3G-PDA M1000 handset is off the showroom floor and finally on the street. WWJ was at the launch event and we’ve put together a quick video program showing just what sort of hoops this smartphone jumps through. Previewed at an April 15 press conference, the tri-band business-use handset from Motorola juggles W-CDMA, GSM and GPRS for global roaming, opens Microsoft Word, Excel and PowerPoint programs as well as PDF files, and allows multiple email functions including POP and IMAP email. Internet access channels through the Opera 7.5 browser. DoCoMo took the (daring) step of dropping i-mode capability for the M1000 in favor of global compatibility. More PDA than phone, all navigation is through the bright, 2.9-inch touch screen.