Service example. The internet is struggling to discover ways to make money, they essentially only can beg for some subscription revenues or hope to build ‘eyeballs’ to try to monetize on advertising. The mobile services industry has invented four newer business models and thus has six, as I explain in my recent books. Consider social networks. Twitter, Facebook, YouTube, Flickr, Wikipedia, etc, how can they earn money? Apart from some advertising income they have millions of users but make pitifully little money if any. Meanwhile mobile social networks from Itsmy out of Germany, Flirtomatic out of the UK, Cyworld out of South Korea, Frenclub out of Malaysia, Mixi, Mobagetown and Gree out of Japan etc – these all make money. Tons and tons and tons of money. Now think of this. All three Japanese mobile social networks, Mixi, Mobagetown and Gree – have similar modern new business models with no or modest subscription fees, and advertising accounts for a small minor part of their total income. Yet all three are making between 200 and 400 million dollars annual in revenues and each of the three generates profits – and get this – all three are listed on the Japanese stock market! That is a business that has become ‘mature’ enough if it is accepted by the stock market. None of that ‘new economy’ nonsense of ‘build enough of an audience but don’t know how to monetize it’ nonsense.
The mobile telecoms industry was launched in Japan by NTT in 1979 (the industry was not launched by Motorola in 1983). In only 29 years the global mobile telecoms industry breached the Trillion dollar annual sales level, becoming the fastest-growing Trillion dollar industry of all time, and doing it so rapidly, odds are this record will stand for centuries. And even in the time of the economic downturn, the mobile industry grew 7% in revenues.