I wonder if American internet companies appreciate the value of mixi.jp? With 3M users and more than 500K communities it has to be worth atleast $150M dollars (I’m not a banker)? Not just because of the number of users on mixi but because its growth potential. For example, mixi users are just now learning how to take advantage of social networks for monetary gain. Similar to the way myspace bands have learned to game friendships to increase their page visits. I have noticed a large number of users pay, yes PAY to use the mixi premium services. I have no idea what the percentage is (anyone?) but I would guess 10% of them. Especially because being a premium member allows you to access the site from your cell phone, many young girls in Japan use the internet via their cell phone.
After having lived in Japan I am convinced that Japanese people are true consumers. They actually pay for and buy things that look interesting. That makes potential revenue from advertising very attractive. Japan has 42M broadband subscribers. 3M registered accounts on mixi. America has 45M broandband subscribers and 73M registered accounts on MySpace. The numbers are not an exact science since MySpace is English and international but it does say something. MySpace users are mostly young, average age of about 17 and don’t buy much. My experience on mixi is that the average age is about 26 and since I believe Japanese are consumers, they do buy things.
Of course the one word of caution I would give is that that Japanese users move in herds. Could 3M mixi users walk away tomorrow? No, but it could suddenly stop growing if management made a series of bad moves and something slightly better came along. It would need to be a combination of both.