(keitai-l) Re: Content provider profits

From: Gerhard Fasol <fasol_at_eurotechnology.com>
Date: 08/13/03
Message-ID: <3F39D994.2030602@eurotechnology.com>
Jeffrey L. Funk wrote:
 > Hello everyone,
 > the percentage of profitable content businesses is a fairly meaningless
 > number. there are always a large percentage of firms that don't make money
 > particularly during the early years of an industry. for example, there were
 > 75 manufacturers of automobiles in the US in 1925, most of whom were
 > clearly not profitable.

I totally agree with Jeff! Here are some more numbers:

US Telegraph companies:
1855: 50 companies
1857:  6 companies
1866:  1 company dominates

US Railroads:
1920: 186 major railroad companies
1980:  39 major railroad companies

US Cars:
1908: 253 car companies
1920: 108 car companies
1929: 80% of cars are produced by Chrysler, Ford or GM

PCs:
1988:  45 PC companies
1993: 100 PC companies
2003: 51% of US market = Dell & HP

The mobile industry is in the early stage, and much consolidation
will come. As Jeff says, most of the i-mode industry will in the
long run not be selling ringing tones and cartoon characters, or
dating services of some kind. As I said in the previous email
selling of JR-Tokkai Shinkansen tickets at US$ 125 a pop is not
trivial, and it's off the DoCoMo balance sheet and off the DoCoMo
statistics, and the profits are probably hidden elsewhere in
JR-Tokkai's accounting. Their i-mode services even might appear
as a loss-making IT-cost-center in the accounting.

Gerhard
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Gerhard Fasol, PhD                         Eurotechnology Japan K. K.
fasol_at_eurotechnology.com               http://www.eurotechnology.com/
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Received on Wed Aug 13 09:30:33 2003