© conit co., ltd. All rights reserved. 1

August 21, 2009

CONIT Co., Ltd.

A New Profit Model for iPhone/iPod Touch

© conit co., ltd. All rights reserved.

Profit Model for the Japanese Mobile Market

 Users pay a monthly subscription to access content through a mobile carrier portal

↓

 Japan is perhaps the only country with this system

Carrier

Application Development Vendor

Provide Content

Content DL

Monthy Subscripion

Subscription Payment

User

・・・

・・・

© conit co., ltd. All rights reserved.

Profit Model for the iPhone market (pre-3.0)

 Users pay a one-time fee to download an application through Apple’s iTunes App Store

↓

 Revenue from app sales are thus much smaller

Apple

Content DL

Initial Payment

App Development Vendor

Payment Content Provider

User

© conit co., ltd. All rights reserved.

Profit Model for the iPhone market (post-3.0)

 Subscriptions are now available with the release of iPhone 3.0

 …and it was believed that more revenue would come for Japanese content providers, BUT…

 Unlike the mobile market, it is up to the developer to handle subscription content and sales

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Developer's Content Server

Requirements for iPhone in-app content payment

 App developer provides content server

 Content Management

 Downloads  Data transfer with Apple

↓

 Significant costs for app developer

Apple

App DL Payment

App Development Vendor

Monthly Subscription

Provide App

User

・・・

・・・ Content DL

Provide Content

・・・

・・・

© conit co., ltd. All rights reserved.

No Need to Worry.

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The Conit Content Subscription Model

 Conit provides a solution for managing content subscriptions and in-app purchases

 Subscriptions can be added to new and existing apps

Content Server

Apple

Payment

App Development Vendor

Monthly Subscription

User

・・・

・・・ Content DL

Provide Content

・・・

・・・

© conit co., ltd. All rights reserved.

Content Subscription Applications: Example 1

 Magazine Subscriptions ‒ Subscribers can be billed for a new issue each month

‒ Example：Secret (I am sorry...)

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Content Subscription Applications: Example 2

 Custom Themes ‒ Ability to pay for new in-app skins or themes

‒ Example：KEWPhone c Rose O'Neill Kewpie

International

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Content Subscription Applications: Example 3

 In collaboration with J's Avenue, Conit is making a 3d sports game with an in-app subscription service

 Coming soon!

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© conit co., ltd. All rights reserved.

At the last

 Today, I have this presentation with ‘TapNext’ that Conit made.

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© conit co., ltd. All rights reserved.

Thank You!

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