Post on 09-May-2015
description
The Japanese Mobile Internet Market Opportunities for international mobile content players
Colombia 3.0 – Oct. 26, 2012
Adrian Van Meerbeeck VP, Strategy and Research, NTT DOCOMO USA
The Japanese Mobile Market
2
Overview of the Japanese Mobile Market: The Size
• The Japanese Mobile market is one of the most important in the world. • The Japanese are outspending the Americans by almost 80% (per capita).
Source: Public sources from each company 3
188
139
USA (big 4) Japan
Revenues 2011 ($ billions)
70.2 63.2
33.7
20.6
53.0
Verizon W. AT&T W. Sprint/Nextel T-Mobile DOCOMO
Revenues 2011 ($ billions)
Overview of the Japanese Mobile Market: Subscribers
• The main carriers in Japan are DOCOMO, au (KDDI) and Softbank Mobile. • DOCOMO has by far the largest share of subscribers.
Source: Public sources from each company 4
- 10.00 20.00 30.00 40.00 50.00 60.00 70.00
2008 2009 2010 2011 DOCOMO 54.60 56.08 58.01 60.13 au 30.84 31.87 33.00 35.11 SoftBank Mobile 20.63 21.88 25.41 28.95
Number of Subscriptions (fiscal year)
DOCOMO, 47%
Market Share of Subscriptions (2011)
Overview of the Japanese Mobile Market: Revenues
Source: Public sources from each company 5
0.0
1000.0
2000.0
3000.0
4000.0
5000.0
2010 2011 DOCOMO 4224.3 4240.0 au 2590.7 2727.0 SoftBank Mobile 1944.5 2144.8
Revenues (Yen billions)
DOCOMO 47%
Market Share: Revenue 2011
Overview of the Japanese Mobile Market: ARPU
• Aggregate ARPU in Japan remains one of the highest in the world. • In 2011 the average ARPU in Japan was close to 60 USD.
Source: Public sources from each company 6
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2008 2009 2010 2011 DOCOMO 5,710 5,350 5,070 4,870 au 5,800 5,410 4,940 4,510 SoftBank Mobile 4,070 4,070 4,210 4,150
Aggregate ARPU (Yen)
Overview of the Japanese Mobile Market: ARPU (data)
Data ARPU has continued to grow steadily – now represents over half of the aggregate ARPU.
Source: Public sources from each company 7
-
500
1,000
1,500
2,000
2,500
3,000
2008 2009 2010 2011 DOCOMO 2,380 2,450 2,540 2,670 au 2,210 2,280 2,320 2,490 SoftBank Mobile 1,740 2,020 2,310 2,510
Packet ARPU (Yen)
Handset Sales in Japan
• The Japanese handset market had reached a mature phase several years ago but the introduction of smartphones in the last couple of years seems to be injecting some new vitality.
• 2011 saw a 20% increase in overall sales.
Source: Public sources from each company 8
39.36 37.37 40.87
48.1
20.13 18.04 19.06 22.09
2008 2009 2010 2011
Handset Sales (million units)
Total Sales (DOCOMO+au+SoftBank) DOCOMO
Japan: Smartphone Shipments
Sales of smartphones have grown ten-fold, from 2.3 million in 2009 to over 24 million in 2011.
Source: MM Research Institute Ltd 9 Note: Japanese fiscal year is Apr 1 to Mar 31
0.3
4.9
16.7
1.7 3.2
7.3
0.4 0.4 0.2 2.3
8.5
24.2
FY 2009 FY 2010 FY 2011
Japan Smartphone Shipments (million units)
Android iPhone Other Total
Android vs. iPhone in Japan
Android market share jumped from around 11% of the Japanese smartphone market in FY 2009 to over 69% in FY 2011.
Source: MM Research Institute Ltd 10
Share of Shipments by OS
Android vs. iPhone in Japan
Android is the dominant OS in Japan with over 60% of market share.
Source: comScore MobiLens 11
61.00%
33.00%
5.70%
0.30%
61.40%
34.20%
3.90% 0.50%
Android Apple Microsoft Other
Top Smartphone Platforms: Share (%) of Smartphone Subscribers
3 Month Avg. Ending Nov. 2011 3 Month Avg. Ending Feb. 2012
% of data service to total ARPU:
0%
10%
20%
30%
40%
50%
1999 2001 2003 2005 2007 2009 2011 (fiscal year)
USA (Verizon Wireless)
(Launched Oct. 2001)
Europe (Vodafone)
(Launched Feb 1999)
52.8% (FY2011/1Q)
37.1% (FY2010/3Q)
(FY2010/3Q)
Japan
30.0%
32.5% (FY2010/3Q)
Korea (KT)
* ARPU: Average Revenue Per Unit per month/subscriber
Japan: Data Contribution to Total Revenues
12
Japan leads the world in terms of data contribution to total revenues due to early introduction of i-mode and other advanced services.
% of 3G Subs to Total User Base
Forecast
日本
アメリカ・カナダ
東南アジア
西ヨーロッパ
0% 20% 40% 60% 80%
100% 120%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: Wireless Intelligence
* Southeast Asia: Malaysia, Thailand, Vietnam and the Philippines
Japan
West Europe
USA/Canada
Southeast Asia
3G adoption in Japan/North America/Western Europe and Southeast Asia (2003-2013)
Japan leads the world in the adoption of third-generation (3G) services
Japan: Highest 3G adoption in the world
13
Global Mobile Media: Revenues
Global consumers are spending $ 26 billions in apps.
Source: Strategy Analytics Global Media Forecast 2012 14
82,805
26,121 16,026
2,837
7,311
2,898
327
726
Data plans / web browsing
Applications & Games
Music Video
Global 2012 Mobile Media Revenues ($ millions)
Advertiser Spend Consumer Spend
17.0% 13.4%
85.4%
20.3% 14.1%
107.4%
22.1% 15.5%
128.9%
Total Market Consumer Spend Advertising Revenue
Year-on-year Mobile Media Market Growth: 2011-2012
Global Major Western Europe US
Japan’s Mobile Business Market
• The Japanese Mobile Content is one of the largest in the world. • It was worth $6.2 billion in 2009 – even before the introduction of smartphones.
Source: Ministry of Internal Affairs and Communication (Japan) & Strategy Analytics 15
260.30 315.00 366.60 427.20 483.50 552.50 259.30
407.40 564.10
732.90 868.90
969.10
2004 2005 2006 2007 2008 2009
Japanese Mobile Business Market (Yen billions)
Mobile Content Market Mobile Commerce Market
6.2 6.7
US Consumer Spending in Apps (2012)
Japan Consumer Spending in Mobile Content (2009)
Mobile Media Market: US vs. Japan ($ billions)
Revenues: Increased Interest on Japan by Developers.
Source: AppBrain
While the majority of apps are still made (and sold) in USA, Japan (¥) has already caught up with the Eurozone market (three times as large as Japan in subscriber base).
16
NTT DOCOMO Inc.
17
NTT DOCOMO: Handset Sales
• In the last years the number of handsets sales at DOCOMO has fluctuated between 18-22 million units - roughly half of the entire Japan sales.
• In 2011 there was a significant increase in sales helped by the introduction of smartphones.
Source: NTT DOCOMO 18
20.13
18.04 19.06
22.09
2008 2009 2010 2011
DOCOMO Total Handset Sales (million units)
NTT DOCOMO: Smartphones
• Steady growth of smartphone sales since the introduction in 2010. • In 2012, 55% of the entire handsets sold to DOCOMO customers will be
smartphones and almost 60% will be Xi (LTE) devices. Source: NTT DOCOMO 19
2.52 7.54 5.50
1.28 7.50
2010 2011 2012 (planned)
DOCOMO Smartphone Sales (million units)
FOMA smartphones Xi smartphones
Smartphones,55%,
2012,(forecast),,(13,million,Smartphones),
Smartphones,40%,
2011,,(8.82,million,Smartphones),
Smartphones,13%,
2010,(2.52,million,Smartphones),
2012 Summer smartphones
AQUOS PHONE sv
SH-10D
AQUOS PHONE ZETA
SH-09D ELUGA power
P-07D
Optimus Vu L-06D
(L-06D JOJO)
REGZA PHONE T-02D
ELUGA V P-06D
Optimus it L-05D
AQUOS PHONE st SH-07D
ANTEPRIMA F-09D Xperia SX
SO-05D ARROWS Me
F-11D
Jul. 13
Released Jun. 28 Jul. 26 Jul. 20
XPERIA GX SO-04D
Jun. 29
Jun. 30 Jun. 27 Jul. 12 Released Jun. 7
GALAXY S III SC-06D
ARROWS X F-10D
MEDIAS X N-07D
・ Released a total of 17 models of smartphones/tablets, overwhelming the offerings of the competitors
・ 11 models are Xi LTE-enabled, and many are equipped with popular features, such as waterproof casing, Osaifu-Keitai e-wallet, one-seg TV, infrared data exchange and other features
docomo tablet
Raku Raku smartphone F-12D
ELUGA Live™ P-08D
docomo tablet
docomo Rak
Raku Phone series
DOCOMO Smartphones/Tablets Lineup
20
0
200
400
600
800
1000
1Q 2Q 3Q 4Q 1Q 4Q
(Million subs)
0.12
Xi subscriptions
0.39
1.14
2.22
Over 10.00 million
3.32
FY2011 FY2012
Xi Coverage expansion plan
112.5MBps 75Mbps MAX throughput
2010 2011 2012
12月
2013 2014
Prefectural capital-size cities
Local cities
Major cities
All municipalities
Mar. 31, 2015: Approx.
50,000 BTSsApprox. 98%
Mar. 31, 2013: Approx.
21,000 BTSsApprox. 70%
Jun. 30, 2012: Approx. 9,800 BTSs Population coverage:
Approx. 32% Launched Xi LTE service
Dec.
・ Xi subscriptions grew steadily to 3.32 million as of Jun. 30, 2012 ・ Making steady progress in coverage expansion, aiming to complete installation of cumulative 21,000 Xi base stations by Mar. 31, 2013
10.00
8.00
6.00
4.00
2.00
DOCOMO: Xi Area Expansion Plans
21
DOCOMO: Evolution of Smartphone Services
Source: NTT DOCOMO 22
• The dmenu portal site provides a wide range of apps and other content from diverse providers, as well as enriched versions of DOCOMO’s popular i-mode™ content, optimized for easy-to-use smartphone interfaces.
• The dmarket content store offers a wealth of other content, including movies, music, e-books and Android™ applications
• DOCOMO’s smartphones also have access to a variety of other DOCOMO services, such as i-concier™ for push-based concierge-like personal assistance, ‘NOTTV’ a multimedia broadcasting station for smartphones and many more.
• VIDEO store and ANIME stores recording favorable increase in subscriptions and transaction volume
• Plan to introduce multi-device support from August 2012
dmarket
VIDEO Store
BOOK Store
MUSIC Store
Apps & Review
New stores to be added in the future Shopping Gaming
ANIME Store
Unlimited access to over 5,000 video titles for a flat monthly rate of \525 No. of subs topped 2.0 million on July 21, 2012
Distributes approx. 43,000 popular titles from various publishers
Acquired approx. 50,000 subs after “Music Store Selection” launch in July 2012 Offering unlimited access to selected 50 programs from approx. 1 million songs for \315/month.
Introduces selected applications that are fun and convenient from Google Play
Acquired approx. 40,000 subs after service launch in July 2012. Unlimited access to approx. 500 titles, 8,000 episodes of ANIME content for \420/month
・・・
0
10
20
30
40
50
3Q 4Q 1Q
(Billions of yen) Growth of dmarket transactions
FY2011 FY2012
5.0
4.0
3.0
2.0
1.0
23
DOCOMO: Enrichment of ‘dmarket’.
・ Received 3.00 million downloads and approx. 130 million accesses in about 5 months after service launch.* Improved convenience with the addition of knowledge Q&A function in June 2012
・ Aim to apply voice agent function to e-commerce services of “dmarket” in the future
Network cloud
Intention analysis engine
Voice recognition
engine
Voice command
Handset operation/ content display
Operated by
voice comm
and
Phone
Alarm
Memo
Scheduler
Camera
Music player
Timer
Content displayed
by voice comm
and
Area guide
Train transfer
Tweets
Recipe info
Weather
Photo content
Map
News
Video content
Music content
Book/comic
Apps
Knowledge Q&A
Gaming content
New
* As of July 25, 2012
Cloud-based Services: ‘Shabette Concier’.
24
• Launched “Mail Hon’yaku Concier” text translation service in June 2012 • Received 100,000 downloads and approx. 1.50 million accesses in approx. 2 months after launch*
Mail Hon’yaku Concier
Machine translation function
Network cloud
SNS
Japanese English Korean Chinese
Create message in Japanese Confirm message in native language
誕生日おめでとう
생일 축하합니다
생일 축하합니다
誕生日おめでとう ございます
*As of July 23, 2012
Cloud-based Services: ‘Mail Honyaku Concier’.
25
・ Trial service of “Translator Phone” supporting translation between Japanese and 10 foreign languages in progress since June, aiming for full-commercial introduction in autumn 2012
・ Recorded 220,000 accesses in approx. 2 months after launch*
Translator Phone
Japanese Foreign language
Mother (Japanese)
Host family and Maki
Translator Phone function
マキの母親です。 娘がお世話に なっています。
I am MAKI’s mother. Thank you for taking care of my daughter.
Network Cloud
Translation
【Supported languages】 Nov. 2011: English, Korean, Chinese Jun. 2012: French, German, Italian, Spanish, Portuguese, Thai, Indonesian
* As of July 23, 2012
Cloud-based Services: ‘Translator Phone’.
26
Automatic upload and synchronization across
multiple devices
Automatic grouping using face recognition feature
Photos of external services can also be viewed
・ “Photo Collection” service planned for launch in August 2012 ・ Photographs taken by mobile devices are automatically sorted and stored in docomo cloud using a wide variety of high-accuracy image recognition features
・ Can also be linked with external services such as Evernote, Eye-Fi, HighCam
Photo Collection Free of charge (Up to 5GB)
Cloud-based Services: ‘Photo Collection’.
27
・ Plan to start supporting cloud-based multi-device access to address book/email in this winter ・ Offers users with greater convenience and peace of mind through constant storage of latest data on the cloud
・ Aim for further service expansion through provision of supplementary services utilizing profile data of address book
Multi-device access (address book)
Tablet
Smartphone
Utilize for services/business
sp-mode mail
Photo sharing service
呍呍呍
Multi-device access ( sp-mode mail)
Tablet
Smartphone
Cloud-based Services: Multi-device Support.
28
Developer Support Page
Smartphone Developer Support page. Purpose: Create a one-stop information window in English for international developers who are interested in the Japanese market. Information included: • Information about the Smartphone activities in Japan:
• Penetration of Android at DOCOMO and in Japan • Android handsets introduced at DOCOMO • Information about DOCOMO’s Smartphone related services
http://www.docomo-usa.com/en/developer/index.php
29
Smartphone Related Activities at DOCOMO USA