Niconico douga is a rapidly growing video sharing site in Japan. Site’s feature is not very different from Youtube, but one cool difference gained big attraction. The difference is a comment feature which enables users to write timely comments on the video screen itself.
The feature allowed users to share ‘experience’ with other users.
Niconico douga attracted many users quickly. At a start, they superpose comments on streaming videos from youtube servers. Resultingly, Youtube started to refuse accesses from Niconico servers. They were forced to set up their own video servers.
Their own video servers are heavy burden to company’s balance sheet. The company, Dwango is its name, has spent about 600 million yen for servers.
Dwango changed the problem into a revenue. They limit peak time usage, and allow unlimited access only for paid users. 144,000 users are paying the fee and, the sum is 68 million yen per month. Advertisements and affiliates are making 18 million and 15 million yen accordingly.
Niconico douga’s success is backed by a powerful team. Lead developer is Akihiko Koizuka, a very powerful programmer. 2ch’s Hiroyuki is doing an advisor.
Currently Dwango is earning most revenue from ringtone services.
See also (in English):
Niconico douga:
- Page views: 59.5 million page views per day
- Video plays: 15 million plays per day
- Comments: 3.2 million comments per day
- Revenue: 101 million yen per month
- People: Developer, Akihiko Koizuka
Dwango (FY 2007):
- Founded: August 1997
- Revenue: 22.2 billion yen
- Loss: 1,408 million yen
- People: Chairman/CEO, Nobuo Kawakami
- People: President/COO, Hiroshi Kobayashi
- People: Managing Director, Hideki Mori
Shunichi Arai