1

Finding A Promising Market For An App

Smartphone Landscape in Japan
2013-2014ver.

I-FREEK MOBILE INC.

An I-FREEK HOL...
1.Promising Market In Japan
In Japan, the most promising model is “Unlimited content
model” in which a carrier provides th...
2.Our Performance

3

I-FREEK MOBILE is successfully adopting smartphone
landscape in Japan. Our sales are increasing beca...
3.Our Role for App Publishers Abroad

4

I-FREEK MOBILE INC. has been successfully adopting
unique and lucrative smartphon...
4.Now Offering!

5

We monetize your app in Japan!
Start to Success Program for Apps
I-FREEK MOBILE knows what-to-do and
h...
Appendix

6

Mobile Content Business
and Smartphone
Landscape in Japan

※Remarks
This document (p6-p13) is a summary of “M...
Table of Contents

7

1. The 2012 total for mobile content related markets was
2,350.7 billion yen.
2. The mobile content ...
1.The 2012 total for mobile content related markets was 2,350.7 billion yen.

8

▶The 2012 total for mobile content relate...
2.The mobile content market accounted for 851 billion yen in 2012

9

▶The mobile content market accounted for 851 billion...
3.Uniqueness of mobile content market in Japan

10

▶In Japan, there are 3 billing models.

1. Application model in which ...
4.Three Major Billing Models ①, ②
①

Application model

②

11

Web content model

In this model, market management busines...
4.Three Major Billing Models ③

12

③ Unlimited content model
Unlimited content model is unique in Japan. All major three ...
5.Summary

13

The market scale of the "mobile content market" in 2012 was 851 billion yen,
which is up, providinga year-o...
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Finding A Promising Market For An App, Smartphone Landscape in Japan

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For app publishers wanting to enter Japan, this is a must-read material. This document unveils and points you where the most promising and growing app distribution platform is. Japan is a unique market. Even you have a great app, if you do not know what is happening in Japan, you will fail.

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Finding A Promising Market For An App, Smartphone Landscape in Japan

  1. 1. 1 Finding A Promising Market For An App Smartphone Landscape in Japan 2013-2014ver. I-FREEK MOBILE INC. An I-FREEK HOLDINGS INC. Company (Listed on the JASDAQ, securities code:3845) http://mobile.i-freek.co.jp/en/ TEL:+81-3-6743-3004(JAPAN) : Mail:mobile-contact@i-freek.co.jp : http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.
  2. 2. 1.Promising Market In Japan In Japan, the most promising model is “Unlimited content model” in which a carrier provides the platform. I-FREEK MOBILE Inc. distributes apps to all major platforms. Carrier NTT DoCoMo au KDDI Softbank Mobile Name of platform Sugotoku au SmartPass Yahoo Premium Numbers of subscribers 1 million 8 million 9.52 million ①Stickers and emoticons:DecoColle Updated daily. Over 150,000 emoji, emoticons, and stickers are available for unlimited usage. These can be used on email and major messenger apps such as Facebook, LINE, Kakaotalk. High Usage! Ranked in the top! ②Camera App:photodeco+ Lots of stickers and frames, and useful features to make your photographs super cute! You can share photos on major SNS such as Facebook, Twitter. High Usage! Ranked in the top! From app development, distribution, to operation, I-FREEK MOBILE is an expert in Japan. http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.
  3. 3. 2.Our Performance 3 I-FREEK MOBILE is successfully adopting smartphone landscape in Japan. Our sales are increasing because of continuing growth of smartphone business. Strong sales on “Unlimited content model” in which a carrier provides the platform. Unlimited content model platforms operated by carriers 64%, now, comes from smartphone Continuing business. growth! More apps will be launched! More! More! More! FY 2013 1Q 2013 2Q 2013 3Q 2013 4Q 2014 1Q 2014 2Q http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.
  4. 4. 3.Our Role for App Publishers Abroad 4 I-FREEK MOBILE INC. has been successfully adopting unique and lucrative smartphone market in Japan. In Japan, “Unlimited content model” in which a carrier provides the platform, is the most important distribution channel, now. I-FREEK MOBILE has been distributing several apps on this promising channel, and I-FREEK MOBILE has also established credibility and high performance. Therefore, I-FREEK MOBILE is the best partner for app publishers for entering and developing business in Japan. So, call or email us now if you are an app publisher with a great app. 【CALL US OR EMAIL US NOW】 I-FREEK MOBILE INC. TEL:+81-3-6743-3004(JAPAN) Mail:mobile-contact@i-freek.co.jp http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.
  5. 5. 4.Now Offering! 5 We monetize your app in Japan! Start to Success Program for Apps I-FREEK MOBILE knows what-to-do and how-to-do for your app to be successful in Japan! Let us monetize your app! 1. Localization • Japanese translation • Data preparation for Japanese users 2. Grant funding for development • Grant funding for app-to-web development 3. Channel acquisition for subscription model with unlimited use of apps and digital contents. • Preparation of proposal material for cellular service operators. • Negotiations with cellular service operators. • Registration with cellular service operators.(IP under I-FREEK MOBILE INC.) 4. Service management • Service management • Content planning and update for Japanese users. 5. Revenue sharing • We share 20% of revenue provided by a cellular service operators. For example: If we receive ¥5,000,000 from an operator, we share ¥1,000,000 to your company. http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.
  6. 6. Appendix 6 Mobile Content Business and Smartphone Landscape in Japan ※Remarks This document (p6-p13) is a summary of “Mobile Content Market Scale 2012” published by Mobile Contents Forum. Full article available for download. http://www.mcf.or.jp/en/releasedata/files/mobilecontent_market_scale2012_en.pdf http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.
  7. 7. Table of Contents 7 1. The 2012 total for mobile content related markets was 2,350.7 billion yen. 2. The mobile content market accounted for 851 billion yen. 3. Uniqueness of mobile content market in Japan 4. Major billing models in Japan 5. Summary http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.
  8. 8. 1.The 2012 total for mobile content related markets was 2,350.7 billion yen. 8 ▶The 2012 total for mobile content related markets was 2,350.7 billion yen. ▶The mobile content market accounted for 851 billion yen. ▶The mobile commerce market accounted for 1,499.7 billion yen Mobile content market status Mobile content Mobile commerce market Mobile content related markets 2009 2010 2011 2012 http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.
  9. 9. 2.The mobile content market accounted for 851 billion yen in 2012 9 ▶The mobile content market accounted for 851 billion yen in 2012 ▶The feature phone market accounted for 479.3 billion yen ▶The smartphone market accounted for 371.7 billion yen Note: Values for the smartphone market prior to 2010 are reference vales and are not included in the market scale. *1 Feature phones are defined as conventional mobile phones that can make use of IP services for mobile phones such as the i-mode. The feature phone market is defined as the market for selling digital content such as music and games, based on a main model representing carrier charges on an official website related to feature phones. *2 Smartphones (including tablets) are defined as terminals that are Internet connectible open operating systems that can make general use via applications and Web browsers. The smartphone market is defined as the market for selling digital content (including applications) related to smartphones. Although game dedicated terminals, which can download game titles, and notebook PCs are capable of connecting to the Internet, they have not been included in this market. http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.
  10. 10. 3.Uniqueness of mobile content market in Japan 10 ▶In Japan, there are 3 billing models. 1. Application model in which the market of the OS business operator is the platform. 2. Web content model in which the browser is the platform 3. Unlimited content model in which a carrier provides the platform ▶ Unlimited content model High barrier to entry. Need high performance record on web content model. Entrance is limited and need to pass review by carriers. Unique in Japan ▶ Web content model Publisher company needs to be registered in Japan. ▶ Application model Low barrier to entry. At oligopoly situation by major publishers. This image is made by I-FREEK MOBILE INC. http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.
  11. 11. 4.Three Major Billing Models ①, ② ① Application model ② 11 Web content model In this model, market management businesses, which All three major mobile carriers in Japan, NTT DoCoMo, distribute applications, set forth the business model, au KDDI, SoftBank Mobile used to provide a portal site creating a need to use the charging system (charging for web-content from a range of publishers. Now NTT fees of 30%) that the market management business DoCoMo provides “dmenu”, and SoftBank Mobile provides provides. Sales in the application market have been “menu-list”. Compared with applications, it is considered to dominated by games and social games. In addition to be the best model for constructing a profitable social game makers such as mobage and GREE, which business model since charges are mostly left to the have been providing applications since feature phones discretion of the publisher. However, have been available, content that is peculiar to browser based content is not as expressive as native smartphones has been spreading, such as game applications, so if users begin to require richer applications like Puzzle & Dragons, and communication content, it can be thought that this will have a big impact on applications like those represented by LINE. the expansion of the market. App Store Characteristics ▶Low barrier to entry ▶Numerous competitors worldwide ▶Stable monetization is difficult Characteristics ▶Needs to work with each carrier ▶Publisher company needs to be registered in Japan ▶Stable monetization is expected, but high barrier to entry http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.
  12. 12. 4.Three Major Billing Models ③ 12 ③ Unlimited content model Unlimited content model is unique in Japan. All major three mobile carriers such as NTT DoCoMo, au KDDI, and Softbank provide platforms under this model. This model provides popular applications for a flat monthly rate. This plan is also popular with users who don't use many applications, people who are new to smartphone. Content providers receive revenue according to the usage status of the contents. As Smartphone usage in Japan is growing, this model is successfully attracting smartphone users in Japan. It is expected that this model continues to grow. Characteristics ▶High performance on web content model is required to be a candidate. ▶Should be approved by a carrier which provides the platform. ▶There is a limitation on the number of apps to be accepted. ▶Stable monetization. ※As of Oct 2013 Name of platform Available apps Number of subscrivers Compatible devices About 500 About 8 million Android iPhone Web About 100 About 1 million Android Web About 1,000 About 9.52 million Android iPhone Web http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.
  13. 13. 5.Summary 13 The market scale of the "mobile content market" in 2012 was 851 billion yen, which is up, providinga year-on-year increase of 116%. The market scale includes calculation divided between the feature phone market, which is the market for selling digital content such as music and games, based on a main model representing carrier charges on an official website related to feature phones, and the smartphone market, which is the market for selling digital content (including applications) related to smartphones. Among the figures for the market, the "feature phone market" accounted for 479.3 billion, but but shrank rapidly at only 73% of the previous year's figures. On the other hand, the "smartphone market“ experienced quick growth at 371.7 billion yen for year-on-year growth of 461%. In this trend, there is a unique billing model, Unlimited content model, that started influencing smartphone landscape in Japan. ※Remarks This document (p6-p13) is a summary of “Mobile Content Market Scale 2012” published by Mobile Contents Forum. Full article available for download. http://www.mcf.or.jp/en/releasedata/files/mobilecontent_market_scale2012_en.pdf http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.

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