Major cellular companies are launching "unlimited" content services one after another. In March, au (no.2 carrier) started the iOS support of the service "Book Pass" and "Video Pass" in addition to "Song Pass", where users can download contents without limitation with fixed price. Also Softbank (no.3 carrier) launched "UULA" where you can watch video unlimitedly in February. NTT DoCoMo (no.1 carrier) is also under consideration. We interviewed Mr. Takeshi Horin, an IT journalist familiar with the mobile industry, about the background and the future of the market.
- What is the background that each company focuses on its own content services?
"Each company has been focused on the development of devices for the past few years, which were transition period from featured phone to smart phone. Now that sophisticated devices are on the table, it's rather a stage of 'how to let people use a smartphone.' However, since all those companies mostly sell either Android or iOS devices, it is hard to differentiate in terms of functionality, so they try to differentiate by original contents."
-Any other background info?
"In terms of revenue, they cannot expect increase transaction fee because of a fixed packet communications charges. By strengthening their own content service, they intend to acquire a new source of revenue by strengthening their own content services."
- Who did it first?
"It was au who first started 'unlimited' service for applications. They focus on apps, video, music, and books from the beginning. In March, 2012, launched 'Smart Pass' for Android where users can download apps unlimitedly with fixed price. The service significantly reduced the hurdles that users use the content by clearly showing its merit."
- And there are more "unlimited" service other than just app.
"au creates an environment that users can easily consume contents; multiple contents services, such as 'Song Pass' with unlimited music and 'Video Pass' with unlimited video, and the discount for users of 'Smart Pass'."
"These 'Pass' services' adoption to iOS also brings a big impact to the mobile industry. These services did not exist in iOS ecosystem. au successfully responded to the users' voice."
"You should not say 'You cannot use 'Pass' because the service is not available to iPhone.' They bring great benefit for users by achieving 'fun for everyone'."
- How is the overall trend?
"Softbank launched UULA in collaboration with Avex Inc. of the music industry, which allows users to watch movie unlimitedly with fixed price, in addition unlimited web app service that they started with Yahoo already. Variety of musical contents has become a feature, but degree of seriousness is still unknown since the service was launched very recently. NTT DoCoMo also line-ups unlimited video, music, and animation services. DoCoMo is also said that they are preparing their version of 'Smart Pass', but is it already one year later than au. 'Smart Pass' of au is one step ahead of other companies, with 5 million memberships in March."
- What is the point for the future?
"More 'unlimited' services, that users can consume contents easily, will be launched. What is important for major mobile carriers is, in addition to the performance of devices, the quality of communication line and the good contents, 'how much the users actually use their service'. The point is 'how to design the easiness of service' for ordinary people to enjoy smartphone without stress."
