For app publishers wanting to enter Japan, this is a must-read material. This document unveils and points you where the most promising and growing app distribution platform is. Japan is a unique market. Even you have a great app, if you do not know what is happening in Japan, you will fail.

1. 1
Finding A Promising Market For An App
Smartphone Landscape in Japan
2013-2014ver.
I-FREEK MOBILE INC.
An I-FREEK HOLDINGS INC. Company
(Listed on the JASDAQ, securities code:3845)
http://mobile.i-freek.co.jp/en/
TEL：+81-3-6743-3004(JAPAN)
：
Mail：mobile-contact@i-freek.co.jp
：
http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.

2. 1．Promising Market In Japan
In Japan, the most promising model is “Unlimited content
model” in which a carrier provides the platform. I-FREEK
MOBILE Inc. distributes apps to all major platforms.
Carrier
NTT DoCoMo
au KDDI
Softbank Mobile
Name of platform
Sugotoku
au SmartPass
Yahoo Premium
Numbers of
subscribers
1 million
8 million
9.52 million
①Stickers and emoticons：DecoColle
Updated daily. Over 150,000
emoji, emoticons, and stickers
are available for unlimited
usage. These can be used on
email and major messenger
apps such as Facebook, LINE,
Kakaotalk.
High Usage!
Ranked in the top!
②Camera App：photodeco+
Lots of stickers and frames,
and useful features to
make your photographs
super cute! You can share
photos on major SNS such
as Facebook, Twitter.
High Usage!
Ranked in the top!
From app development, distribution, to operation, I-FREEK
MOBILE is an expert in Japan.
http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.

3. 2．Our Performance
3
I-FREEK MOBILE is successfully adopting smartphone
landscape in Japan. Our sales are increasing because of
continuing growth of smartphone business.
Strong sales on “Unlimited content model” in
which a carrier provides the platform.
Unlimited content model platforms
operated by carriers
64%, now,
comes from
smartphone Continuing
business.
growth! More
apps will be
launched!
More!
More!
More!
FY 2013 1Q 2013 2Q 2013 3Q 2013 4Q 2014 1Q 2014 2Q
http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.

4. 3．Our Role for App Publishers Abroad
4
I-FREEK MOBILE INC. has been successfully adopting
unique and lucrative smartphone market in Japan. In Japan,
“Unlimited content model” in which a carrier provides the platform, is
the most important distribution channel, now. I-FREEK MOBILE has
been distributing several apps on this promising channel, and I-FREEK
MOBILE has also established credibility and high performance.
Therefore, I-FREEK MOBILE is the best partner for app
publishers for entering and developing business in Japan.
So, call or email us now if you are an app publisher with a
great app.
【CALL US OR EMAIL US NOW】
I-FREEK MOBILE INC.
TEL：+81-3-6743-3004(JAPAN)
Mail：mobile-contact@i-freek.co.jp
http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.

5. 4．Now Offering!
5
We monetize your app in Japan!
Start to Success Program for Apps
I-FREEK MOBILE knows what-to-do and
how-to-do for your app to be successful in
Japan! Let us monetize your app!
1. Localization
• Japanese translation
• Data preparation for Japanese users
2. Grant funding for development
• Grant funding for app-to-web development
3. Channel acquisition for subscription model with unlimited use of
apps and digital contents.
• Preparation of proposal material for cellular service operators.
• Negotiations with cellular service operators.
• Registration with cellular service operators.(IP under I-FREEK
MOBILE INC.)
4. Service management
• Service management
• Content planning and update for Japanese users.
5. Revenue sharing
• We share 20% of revenue provided by a cellular service operators.
For example: If we receive ¥5,000,000 from an operator, we share
¥1,000,000 to your company.
http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.

6. Appendix
6
Mobile Content Business
and Smartphone
Landscape in Japan
※Remarks
This document (p6-p13) is a summary of “Mobile Content Market Scale 2012” published by Mobile Contents Forum.
Full article available for download. http://www.mcf.or.jp/en/releasedata/files/mobilecontent_market_scale2012_en.pdf
http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.

7. Table of Contents
7
1. The 2012 total for mobile content related markets was
2,350.7 billion yen.
2. The mobile content market accounted for 851 billion yen.
3. Uniqueness of mobile content market in Japan
4. Major billing models in Japan
5. Summary
http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.

8. １．The 2012 total for mobile content related markets was 2,350.7 billion yen.
8
▶The 2012 total for mobile content related markets was 2,350.7 billion yen.
▶The mobile content market accounted for 851 billion yen.
▶The mobile commerce market accounted for 1,499.7 billion yen
Mobile content market status
Mobile content
Mobile commerce market
Mobile content related markets
2009
2010
2011
2012
http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.

9. ２．The mobile content market accounted for 851 billion yen in 2012
9
▶The mobile content market accounted for 851 billion yen in 2012
▶The feature phone market accounted for 479.3 billion yen
▶The smartphone market accounted for 371.7 billion yen
Note: Values for the smartphone market prior to 2010 are reference vales and are not included in the market scale.
*1 Feature phones are defined as conventional mobile
phones that can make use of IP services for mobile phones
such as the i-mode. The feature phone market is defined
as the market for selling digital content such as music
and games, based on a main model representing carrier
charges on an official website related to feature phones.
*2 Smartphones (including tablets) are defined as
terminals that are Internet connectible open operating
systems that
can make general use via applications and Web browsers.
The smartphone market is defined as the market for
selling digital content (including applications) related to
smartphones. Although game dedicated terminals, which
can download game titles, and notebook PCs are capable
of connecting to the Internet, they have not been
included in this market.
http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.

10. ３．Uniqueness of mobile content market in Japan
10
▶In Japan, there are 3 billing models.
1. Application model in which the market of the OS business operator is the
platform.
2. Web content model in which the browser is the platform
3. Unlimited content model in which a carrier provides the platform
▶ Unlimited content model
High barrier to entry. Need high
performance record on web content
model. Entrance is limited and need to
pass review by carriers.
Unique in
Japan
▶ Web content model
Publisher company needs to be
registered in Japan.
▶ Application model
Low barrier to entry. At oligopoly
situation by major publishers.
This image is made by I-FREEK MOBILE INC.
http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.

11. ４．Three Major Billing Models ①, ②
①
Application model
②
11
Web content model
In this model, market management businesses, which
All three major mobile carriers in Japan, NTT DoCoMo,
distribute applications, set forth the business model,
au KDDI, SoftBank Mobile used to provide a portal site
creating a need to use the charging system (charging
for web-content from a range of publishers. Now NTT
fees of 30%) that the market management business
DoCoMo provides “dmenu”, and SoftBank Mobile provides
provides. Sales in the application market have been
“menu-list”. Compared with applications, it is considered to
dominated by games and social games. In addition to
be the best model for constructing a profitable
social game makers such as mobage and GREE, which
business model since charges are mostly left to the
have been providing applications since feature phones
discretion of the publisher. However,
have been available, content that is peculiar to
browser based content is not as expressive as native
smartphones has been spreading, such as game
applications, so if users begin to require richer
applications like Puzzle & Dragons, and communication
content, it can be thought that this will have a big impact on
applications like those represented by LINE.
the expansion of the market.
App Store
Characteristics
▶Low barrier to entry
▶Numerous competitors worldwide
▶Stable monetization is difficult
Characteristics
▶Needs to work with each carrier
▶Publisher company needs to be
registered in Japan
▶Stable monetization is expected,
but high barrier to entry
http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.

12. ４．Three Major Billing Models ③
12
③ Unlimited content model
Unlimited content model is unique in Japan. All major three mobile carriers such as NTT DoCoMo, au KDDI,
and Softbank provide platforms under this model. This model provides popular applications for a flat
monthly rate. This plan is also popular with users who don't use many applications, people who are new to
smartphone. Content providers receive revenue according to the usage status of the contents. As
Smartphone usage in Japan is growing, this model is successfully attracting smartphone users in Japan. It is
expected that this model continues to grow.
Characteristics
▶High performance on web content model is required to be a candidate.
▶Should be approved by a carrier which provides the platform.
▶There is a limitation on the number of apps to be accepted.
▶Stable monetization.
※As of Oct 2013
Name of platform
Available apps
Number of
subscrivers
Compatible devices
About 500
About 8 million
Android
iPhone
Web
About 100
About 1 million
Android
Web
About 1,000
About 9.52 million
Android
iPhone
Web
http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.

13. ５．Summary
13
The market scale of the "mobile content market" in 2012 was 851 billion yen,
which is up, providinga year-on-year increase of 116%. The market scale
includes calculation divided between the feature phone market, which is the
market for selling digital content such as music and games, based on a
main model representing carrier charges on an official website related to
feature phones, and the smartphone market, which is the market for selling
digital content (including applications) related to smartphones.
Among the figures for the market, the "feature phone market" accounted for
479.3 billion, but but shrank rapidly at only 73% of the previous year's figures.
On the other hand, the "smartphone market“ experienced quick growth at
371.7 billion yen for year-on-year growth of 461%.
In this trend, there is a unique billing model, Unlimited content model, that
started influencing smartphone landscape in Japan.
※Remarks
This document (p6-p13) is a summary of “Mobile Content Market Scale 2012” published by Mobile Contents Forum.
Full article available for download. http://www.mcf.or.jp/en/releasedata/files/mobilecontent_market_scale2012_en.pdf
http://mobile.i-freek.co.jp/en/ ©I-FREEK MOBILE INC.