Cellular phones new choice for e-commerce platform Industry News Posted: Feb. 3, 2000 JAPAN? Cellular phones are said to have already surpassed PCs as the viable platform for digital content sales to consumers, according to a new research report from Tkai Inc.
Digital content providers have won thousands of paying subscribers, besides successfully collecting fees under a secure and robust cost-effective micropayment system that may later go on to serve as a model for e-commerce throughout the rest of Asia.
Kevin Schaer, Tkai's lead writer, said "Toy maker Bandai, for example, has won more than 600,000 subscribers to its cellular-based content services, and is taking in revenues well in excess of $300,000 each month. The combination of a satisfying online experience, especially for novice users, and a powerful co-operative settlement scheme has created an online content sales model of unparalleled success worldwide."
He added that caution is necessary when extrapolating trends in Japan with respect to other markets. Growth of Internet-enabled cell phones in Japan owes much to factors peculiar to the country. These include NTT DoCoMo's dominant, market-maker position, consumer commuting patterns, high cost of social interaction in Japan, and cultural and logistical factors that make consumers receptive to a handset-based online experience.
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