Disney plans to end its U.S. mobile phone service in December and to compensate will turn to the Japanese market early next year. The company is hoping that the demand for its online content will be able to compete in the world’s biggest market of third-generation phones. Disney will use local mobile phone carrier Softbank Corp’s network. The two companies have plans to develop new mobile phones and content for Japan’s competitive market.
Softbank, which is new to Japan, has been gaining market share with its low-cost price plans. Softbank hopes that a partnership with Disney will induce subscribers to use their phones for more downloads, and switch to more expensive handsets and calling plans.
Michito Kimura, a market analyst at the research firm of IDC Japan, has doubts about the new partnership. Disney phones might appeal to hard-core Disney fans, children and adolescents; they are unlikely to win more than 100,000 to 200,000 subscribers out of a market of 100 million mobile phone users.
“Softbank is eyeing long-term growth from this partnership, and the question is if Disney will stick it through,” Kimura said. “You need to constantly come up with new and quality content to keep users interested.”
Hi,
I found your blog a very good source of information. It is very informative!
I am a student at the Columbia University of NY and currently doing a research paper on the subject of mobile banking. I am of the firm belief that Mobile banking is there to stay and is definitely beginning to gain traction in the United States.
For that matter I also came across a lot of vendors providing solutions in the mobile banking space in the process of doing my research. And when I look it from the vendors point of view how do I take into account the risk involved in these investments. I want to know how vendors of mobile banking such as mfoundry, firethorn, obopay and the host of other new players entering the market are able to justify there investments. In particular what kind of discount factor or cost of capital do they go with when venturing into creating solutions for mobile banking considering that mobile banking has still not started to generate any substantial revenue for banks.
I would appreciate your advice and suggestions in helping me solve this puzzle.
Thanks,
Rakesh