Decline in Users Due to Platform Policy Changes and Migration to Smartphones
First written in FY2016. 6 of 16 entries say "Materialised", first in FY2017-Q3. Latest entry: FY2025.
Media Kobo moved to the "Worse" side of this theme in 2017, 7 years before the typical company in this theme (2024).
The whole theme swung hardest in 2023: 3 of 9 companies on the "Worse" side.
11 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「Meanwhile, ISPs and certain other platforms have decided to discontinue or reduce the distribution of fortune-telling content, and have also increased distribution fees. Going forward, platform providers and others may decide to produce content in-house or limit or discontinue the number of content offerings or distribution itself.」
The Company continues to disclose the risk of an impact on revenue from platforms discontinuing or reducing distribution, raising fees, or producing content in-house. - FY2024WorsenedAnnual report
「Meanwhile, ISPs and certain other platforms have decided to discontinue or reduce the distribution of fortune-telling content, and have also increased distribution fees. Going forward, platform providers and others may decide to produce content in-house or limit or discontinue the number of content offerings or distribution itself.」
Regarding platform dependence risk, the Company has explicitly identified not only the continued discontinuation or reduction of distribution, but also the risk of higher distribution fees and potential in-house content production. - FY2023-Q3MaterialisedAnnual report
「Revenue declined because new content performed poorly and could not offset the decline in revenue from the ISPs' discontinuation or reduction of fortune-telling content distribution.」
The ISPs' discontinuation or reduction of fortune-telling content distribution actually affected the cumulative results for the current quarter as a factor behind the decline in revenue in the digital content business. - FY2023-Q2MaterialisedAnnual report
「Revenue was affected by the ISPs' discontinuation or reduction of fortune-telling content distribution, sluggish performance by new content, and a trend toward declining revenue as existing content was operated over longer periods.」
The discontinuation or reduction of fortune-telling content distribution by platform providers actually affected the current quarter, resulting in lower revenue in the digital content business. - FY2023-Q1MaterialisedAnnual report
「During the first quarter cumulative consolidated accounting period, revenue declined year on year due to decisions by the ISPs to discontinue or reduce the distribution of fortune-telling content. As a result, revenue from the digital content business during the first quarter cumulative consolidated accounting period was ¥313 million, down 11.5% year on year, while operating income was ¥117 million, down 20.5%.」
The ISPs' decisions to discontinue or reduce the distribution of fortune-telling content actually affected the current quarter, resulting in lower revenue and earnings in the digital content business. - FY2022MitigatedAnnual report
「Revenue declined year on year as a result of decisions by the ISPs to discontinue or reduce the distribution of fortune-telling content. Accordingly, certain distribution platforms reported lower revenue and earnings. However, several new content releases achieved moderate success, and the strengthening and streamlining of the operating structure, centered on hit content from the previous consolidated fiscal year, extended content life cycles compared with previously. As a result, revenue and earnings increased year on year, mainly for content aimed at mobile carriers.」
Although reduced distribution by the ISPs led to lower revenue and earnings in some areas, hits among new content and stronger operations resulted in higher revenue and earnings for the business as a whole. - FY2022-Q3MitigatedAnnual report
「Revenue declined on some distribution platforms due to ISPs' policies of reducing distribution of horoscopes content. However, several new titles released during the third quarter became moderate hits, and efforts to strengthen operations resulted in year-on-year increases in revenue and earnings, mainly for content aimed at mobile carriers.」
Although reduced distribution by the ISPs led to lower revenue, a hit among new content and stronger operations increased revenue and earnings for the business as a whole. - FY2022-Q2MaterialisedAnnual report
「During the cumulative second quarter period, several ISPs decided to reduce the distribution of fortune-telling content, creating a factor behind the decline in earnings. However, as a result of focusing on strengthening content operations, content lifecycles lengthened and revenue increased year on year.」
The reduced-distribution policies of the ISPs, which are platform providers, were actually decided upon and became a factor in declining revenue from fortune-telling content. - FY2021RestatedAnnual report
「We will seek to reduce these risks by expanding platforms other than ISPs and mobile telecommunications carriers and enhancing our own media and other offerings. However, if platform providers and others change their policies, terminate contracts, or amend contract terms, this may affect the performance of the Group and its future business development.」
The Company continues to address the risks of platform policy and contract changes by expanding platforms other than those operated by telecommunications providers and enhancing its own media. - FY2020MitigatedAnnual report
「We will seek to reduce these risks by expanding platforms other than ISPs and mobile telecommunications carriers and enhancing our own portal sites and other media.」
In response to changes in platform policies, the Company is expanding platforms other than ISPs and mobile telecommunications carriers, as well as its own portals. - FY2020-Q1WorsenedAnnual report
「Although there were months in which monthly revenue fell below forecasts due to the impact of changes in search engine algorithms, the Company significantly reduced its operating loss as the operation of its existing media became more stable than in the same period of the previous year.」
The impact of changes in search engine algorithms has continued, and there have in fact been months in which monthly revenue fell below forecasts. - FY2019RestatedAnnual report
「Accordingly, if the Company's policies or algorithms are changed, advertising revenue is expected to decline, which may affect the performance of the Group.」
The Company continues to disclose the risk of declining advertising revenue due to changes in the platform policies and search algorithms of Google and others. - FY2019-Q1WorsenedAnnual report
「Advertising revenue stagnated, largely because changes to the search engine algorithms used by portal sites made the search engine optimisation (SEO) measures developed during the previous consolidated fiscal year less effective than before.」
Changes in search algorithms on the platform side newly became evident in the reduced effectiveness of SEO measures and stagnant advertising revenue. - FY2017MaterialisedAnnual report
「Revenue and earnings both fell below the previous year as changes in advertising placement rules based on carrier policies shortened the life cycle of IP collaboration apps.」
Changes in advertising placement rules on the platform side actually resulted in shorter app life cycles and lower revenue and earnings in the fortune-telling business. - FY2017-Q3MaterialisedAnnual report
「Revenue and earnings declined as changes in advertising placement rules based on carrier policies shortened the life cycle of IP collaboration apps.」
Changes in advertising placement rules on the platform side actually resulted in shorter life cycles for IP collaboration apps, lower revenue and lower earnings. - FY2016First statedAnnual report
「If platform providers and others change their policies, terminate contracts, or amend contract terms, this may affect the performance of the Group and its future business development. In addition, when users of the Group's content for mobile phones change devices from feature phones to smartphones, there is no guarantee that they will continue using the Group's content.」
The risks identified are dependence on sales through external platforms and the lack of assurance that users will continue using the content after changing devices.