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Is FiLife Running On Borrowed Time?

Less than two months after talking up the turnaround at Dow Jones-IAC (NSDQ: IACI) personal finance JV FiLife, paidContent has learned the site’s continued existence is no certainty. It survived the multiple trimmings as Barry Diller cut back on IAC’s portfolio of emerging businesses, but the company is now exploring options that range from leaving it open to a sale or a full shut down. When Ezra Kucharz, president and GM for just over a year, left for CBS (NYSE: CBS) in January, both IAC and DJ credited him publicly with turning around the site and building it to the #4 personal finance site with 4.4 million unique visitors in December. Now both companies are declining comment about the site’s future.

One possibility for IAC could be selling its stake to Dow Jones (NYSE: NWS), which recently bought out SmartMoney partner Hearst. But that’s a well-established brand with an 800,000-circ magazine. Whether DJ would even want to own FiLife outright is unclear—as is whether a deal actually would involve much money. What FiLife does have—more traffic than SmartMoney.com, where personal finance is just one category, and a digital mentality. Is there a way to combine the two?

FiLife has had a bit of a tortured life from its beginning: taking more than a year to move from an idea to a blog, then taking so long to emerge from that status the plans appeared to be dormant. Dave Kansas, brought in from the Wall Street Journal to launch the site, was replaced by online vet Kucharz in late 2008. Adam Wiener, executive editor and VP-content was promoted to GM when Kucharz left, but not given the title of president.

It’s made strides on the editorial side. Just last month FastCompany picked it as the most innovative company in the finance area for using “a Q&A format with a host of social and game-like features to get Americans talking about money. More as warranted—and please feel free to e-mail me if you have details.

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Mar 19, 2010 11:15 PM ET

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Posted In: Features, Exclusive, Media & Publishing, Online News, Companies, IAC, News Corp., Dow Jones

  • I think I must agree ... unless you can read Japanese, pressing buttons blindly isn't really reporting on how something works. The phones I saw in Japan played terristrial TV ... I think that's something way ahead of what we've got access to.

  • Whilst the difference between the high end phones elsewhere and the mainstream phones (which pretty much all have "high end" features) in Japan is becoming smaller, that isn't the most interesting part of the Japanese phone culture.

    The more interesting observations are _how_ the phones are being used. Jump on a train an watch how everybody and their grandmother (literally) are fiddling with their phone, either writing messages or browsing content, or see how people pay for goods and services with their phones. Virtually all convenience stores support this (as well as various other retail outlets - a large coffee shop chain called Pronto supports this throughout its chain, for example, as well as every Daimaru Peacock supermarket I've been to), as well as an increasing number of taxis, and other service infrastructure.

    See how an increasing number of people have their train/subway passes on their phone, by standing by the turnstiles at any major train station.

    See how the subway network has embraced QR codes on its exit signs, allowing users to access a map of the local vicinity.

    See how print media and packaging has wholeheartedly embraced QR codes.

    If you (god forbid) decide to go to McDonalds, you'll see QR codes printed on the paper wrapping your mechanically reclaimed meat sandwiched between bleached bread, which allows customers to check the "nutritional" information of their "meal".

    (BTW, if you want to talk to the Wireless Watch Japan people, I'll be happy to arrange an introduction via email)

  • The point about the penetration of services is well made—one thing I was going to mention but slipped my mind is the ability to pay for things from vending machines with your mobile. (<a href="http://www.flickr.com/photos/81646129@N00/769569924/" title="Photo Sharing"><img src="http://farm2.static.flickr.com/1039/769569924_6a19ebceeb_s.jpg" width="75" height="75" alt="vendingmachine" align="right" /></a>)
    The thing that sticks out is that it doesn't stick out—it's not anything special here. The point I was making that the mobile services seem only slightly ahead of other places seemed very important to me, and as I thought about it today I worked out why. It indicates there is no "killer app". Mobile TV won't suddenly drive mobile content uptake any more than mobile music did, because <b>it's not a case of a missing service</b>. Mobile content needs a good customer experience as well as an effective business model, as Andres and Matt pointed out. Trying to copy the superficial services in Japan misses the point—it's the way those services are supported that must drive the uptake.

    I missed DoCoMo's Technical Lab unfortunately, which is doubly bad because I was in Akihabara before I went to Harajuku for the mobile stuff. I should have contacted the guys from Wireless Watch, but it didn't occur to me until I was in Tokyo and it was too late. To really get to know the services I'd have to stay here a month, which I wouldn't mind doing if I had the option.

  • Luis

    Rafat, you missed the point but thats okay…..... dont take it personal…...

    James, thats too bad you didn't get to see what the phones can really do. The point is that the mobile infrastructure and ecosystem that exist there has created some very impressive services and applications that we wont see in the USA for another 2 years.

    The phones are impressive in their capabilities but the services are what really matter and how they take advantage of the handset features. You should also try to contact the guys from Wireless Watch Japan:
    http://www.wirelesswatch.jp/ 

    Enjoy your Japan holiday…...

  • Andres Crosa

    Matt pointed it very good, one big mistake when comparing the mobile market of the US and Japan is to check the hardware features as characteristics of standalone systems, this is very wrong, although the differences are still present, inexperienced people eyes may see that "they don't seem that far ahead".

    It will take the US more than 24 months to be close to a nation-wide or even region-wide infrastructure for Matt’s mentioned e-wallet or e-ticket, or even the digital TV mentioned in the article by James, FLO technology only covers a portion of the population under a certain carrier and it is not close to the digital TV "service" offered in Japan from day one 15 months ago which included datacasting, interactivity, simulcast with TV/STB sets, and last but not least… for free.

    Somehow all this reminds me the times when i-mode was launched and after some months of increasing revenues and positive user reaction, the US carriers didn't want to recognize that the new model was successful, hiding behind the cultural differences explanation which we all know now does not apply when there is a true cooperation in the ecosystem carrier-manufacturer-service_provider.

    James, if you happen to be around Akihabara, don’t miss DoCoMo’s Technical Lab at the 1st F of the UDX building, very close to JR station.

  • The KDDI Design Studio is really cool.

    I also have the impression that Japanese mobile apps & handsets are not radically ahead of other markets, though definitely people are more comfortable using their phones for non-voice purposes such as email, camera, train schedules, etc.  But the most significant difference I've noticed is in the infrastructure to support mobile phone use.

    For example, Japan has a widely deployed infrastructure to support e-commerce through FeliCa (swipe your phone to buy something in a vending machine or take a train ride) and advertising through QR Codes which allow you to snap a picture of an ad to get more information or interact with the advertiser.  These services are used by everyday consumers, and it is this area where the highly competitive/fragmented US market may have a hard time catching up.

  • True, it would be perfect to have someone there showing me through the features of the phones. But just as I cannot read Japanese I cannot speak it either, and the "English-speaking" salespeople can speak English well enough to explain basic details ("this phone is good for photos") but anything more complicated than that is difficult. When I asked about downloading videos it took 20 minutes to explain what I wanted to know.

  • Rafat Ali

    Luis
    This is not reporting..this is his journal while he is on vacation, and not a fact based reporting assignment in Japan..thought that was obvious. Also, lighten up.

  • Luis

    This is the kind of reporting that makes lose credibility. You should have never wondered into a store without having someone point out what is there. It sounds really stupid you trying to punch thru menus on a Japanese handset and not know whats happening and then make the ridiculous comments you wrote.

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