MyNet Social Networking Backupslides Nov 2007

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Backup slides of events attended and interviews conducted for the Finpro & tekes MyNet joint project.

Backup slides of events attended and interviews conducted for the Finpro & tekes MyNet joint project.

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  • 1. MyNet MyNet Project Backup Slides Events & Interviews Pekka Parnanen, Maria Pienaar – Finpro Riku Makela - Tekes
  • 2. Background This slide deck provides background information to a Tekes and Finpro project conducted in 2007 on trends within the Social Networking Services space. More information and a summary of the findings can be found on: http://www.slideshare.net/FinNode/slideshows http://www.facebook.com/group.php?gid=6274653073 Aug '07 FinNode '07 2
  • 3. Disclaimer Non of the views listed in this presentation from interviews conducted are official company views or represent company strategies and should not be interpreted as such. These views represent general and personal views with regards to trends within the Social Networking Services Space. Aug '07 FinNode '07 3
  • 4. Definitions ‘Every time we try to describe what a community is, we find exceptions to the description’ Online community We may call different types of online communities as social network services: • Social Spaces • Professional Groups • Role-playing • Work-related discussion groups • Medical and illness support groups • Geographically related groups • Tech/Software Support Virtual community • “Virtual communities are social aggregations that emerge from the Net when enough people carry on those public discussions long enough, with sufficient human feeling, to form webs of personal relationships in cyberspace.” by Howard Rheingold, The Virtual Community (a book about an early virtual community service Well) Aug '07 FinNode '07 4
  • 5. Miscellaneous comments • Granovetter's theory of the power of weak ties: you get more new ideas and more diversified comments from weak ties than strong ties • 'The greatst search engine out there is the word of mouth' • Case: Jones Soda. People upload photos to their Internet site. Site visitors vote for the best one. The winning photo will be in the label of the next set of manufactured bottles. • 'Focus on macro trends and fit the micro trends into them.' • Interesting social network & social media sites: www.cardomain.com (what you did with your car) • Today, users spend much longer time on social networking sites than earlier in other sites (avg session time in spring 2007 was in MySpace 30 min and YouTube had grown from 12 to 20 min in 12 months). • Social graph is the nodes and relationships between the nodes in social network. Some initiatives are trying to make this data transportable between different services: http://radar.oreilly.com/archives/2007/10/web2summit_soci_1.html Aug '07 FinNode '07 5
  • 6. Design principles Design Principles for Online Communities by Peter Kollock, University of California, Los Angeles, 1996. http://www.sscnet.ucla.edu/soc/faculty/kollock/papers/design.htm outlines the basics plus relevant prior research: … • Godwin's (1994) principles for making virtual communities work: • o Use software that promotes good discussion o Don't impose a length limitation on postings o Front-load your system with talkative, diverse people o Let the users resolve their own disputes o Provide institutional memory o Promote continuity o Be host to a particular interest group o Provide places for children o Confront the users with a crisis Aug '07 FinNode '07 6
  • 7. Links • International Conference on Weblogs and Social Media. March 31-April 2, 2008. Seattle, Washington, U.S.A. http://www.icwsm.org/2008/index.shtml •… Technologies and platforms • Zonetag.research.yahoo • http://fireeagle.research.yahoo.com • OpenSocial Aug '07 FinNode '07 7
  • 8. Types of Companies Covered (Web & Mobile) • Investment Community -Serial Entrepreneurs, VC’s & Analysts • Mobile Carriers • Small start-ups • Internet SME & Industry Giants (Google, Yahoo!) • Retail • Media companies – Publishing, Advertising, Studios & Music • Legal • Enterprise/Office 2.0 Aug '07 FinNode '07 8
  • 9. Want to find out from Interview • Trends • Business models • Opportunities (biz, collaboration, funding, reseach, …) • What have been the eye openers • Timing, when and what • Ecosystem, now and then, how will it change/develop • Community relationships & collaboration • How to build visibility, viral aspects • Legal aspects, ownerships • Copyrights, DRM • Mobility, when would it happen and how, convergence • Technological barriers, change • Other barriers, mental, organizational, social/demographics, etc, change • What is needed to boost social networking • Where is it going, what’s Social Networking 3.0, where are we now • The role of open source/collaborate development • Operators role now and then (SN 3.0) • Connection between physical networks and virtual/social networks The goal is to FIND Market Opportunities! Aug '07 FinNode '07 9
  • 10. Events Participated In • IBDN UTR - Why Office 2.0 Matters – Mar 23 – Mashups, Team Work, Stay Organized, Web Sharing • Millenials and Media, Los Angeles, Apr 18 • Generation Technology by SD Forum/HP/Sun, Palo Alto, May 23 • OSBC, San Francisco • Global Mobility Roundtable, Los Angeles, June 1-2 • IBDN Strategy Series - What comes First - revenue or eyeballs, Menlo Park, June 6 • iHollywood Forum - What Social Media Means to Hollywood – Jun 11 • Digital Hollywood, Spring – Jun 12 – Contextual Media & Advertising, Music, Hollywood Reinvented, Publishing 2.0, Broadband as Entertainment Platform • IBDN UTR – Entertainment & Media – Jun 28 – Music, Games, Virtual Worlds • IBDN Strategy Series – What’s Driving Mobile Advertising? – Aug 15 • Web 2.0 Summit, San Francisco, Oct 16-18 • Mobile Mash-up by Nokia, Palo Alto, Nov 1 Aug '07 FinNode '07 10
  • 11. Interviews Conducted (1) • mBuzzy - Ryan Nobrega, CEO (Social Content & Entertainment - Web & Mobile) • Yahoo! - Paul Callan, Technical Strategist, Connected life (Search & SNS - Web & Mobile) • Norwest Venture Partners - Tim Chang, Analyst (VC) • Kaboodle – Manish Chandray, CEO (Social Shopping) • Google Mobile – Tony Hsieh, Mobile Team Product Manager (Search & SNS – Web & Mobile) • Cundari FSP – Eli Singer, MD Social Media (Branding, Advertising & PR) • Media Industry Advisor – Rupert Perry, ex-EMI Executive • Retail Entertainment Design – Hugh Hardage, VP Advertising Sales and Strategic Marketing (Retail) • Entertainment Attorney - Ken Hertz, Entertainment Attorney, Sr. Partner, Goldring Hertz & Lichtenstein LLP • David Coleman – CEO, Collaborative Strategies • DC Netcast – Howard Mann, CEO Aug '07 FinNode '07 11
  • 12. IBDN: Why Office 2.0 Matters Mash it up session • Panelists: Jeff Barr, Amazon Web Services, Rob Rueckert, Intel Capital, Ken Gullicksen, Morgenthaler Ventures • Companies: LongJump, Masherey, Proto Software, Teqlo Team Work session • Panelists: Rafe Needleman, Webware/CNET, Rob Hayes, First Round Capital, Jonathan Rochelle, Google • Companies: Blogtronix, BrainKeeper, Firestoker, SystemOne Stay Organized session • Panelists: Rafe Needleman, Webware/CNET, Stowe Boyd, Message, Jason Yotopoulos, SAP, Stephanie Vargo-Walker, SUN • Companies: Approver, Big Contacts, Koral, WorkLight Web Sharing session • Panelists: Eran Megiddo, Microsoft; Ismael Ghalimi, IT Redux; Steven Li, Webex • Companies: ConceptShare, Slideaware, Spresent, Vyew Aug '07 FinNode '07 12
  • 13. IBDN: Why Office 2.0 Matters Main Trends (1) • Next generation office workers expect to have these collaborative tools they use in private capacity available in office environment. Sees email only as formal means of communications. Rest of communication using collaborative sites • Vertical applications being shared and created by enterprise/office communities • Focus on tools to enable collaboration – driver seems to be MS Office type applications but also seeing other business applications and tools such as CRM, Calendar, Contacts, business forms, sales analysis – Integration of external Web services applications with Enterprise applications • Widgets popping up everywhere enabling data sharing • Integration and Convergence of applications with Enterprise & public domain collaboration such as Yahoo!, Google, Evite, Ebay, Linkedin, Skype, YouTube – More companies using SNS sites to promote products and services especially YouTube • Strong integration with social networking technologies - chat/IM, VoIP, streaming, RSS, mashing, blogs and wiki-type services • IT is loosing control - becoming IT nightmare from security point of view – Some sites addressing security, depending on final target market • Collaboration applications mainly in areas of knowledge/document sharing, workflow and project sharing applications – Collaboration between external & internal communities in structured way e.g. RFP processes – Development of these structured processes will drive adoption Aug '07 FinNode '07 13
  • 14. IBDN: Why Office 2.0 Matters Main Trends (2) • Applications moving towards self-service and self-create & share model. – Office workers define their application user experience similar to what they do with SNS sites • More successful companies tend to choose the target audience/business community carefully – Approver – Law firms drive customer adoption – Clear value proposition & focus for target group & GTM strategy • Office 2.0 (SME & SOHO) seems to drive adoption, Enterprise 2.0 will follow • People integrate & aggregate content from Web into business applications – add and share/edit data from external sources with business data • Applications support presence – context becoming more important • Mobile – First implementation on Internet, then looking at moving to mobile. – Still viewed as very limiting platform, however, does see it becoming more important and all have it on roadmap within next 12-18 months – RIM and Windows Mobile current platforms of choice where looking at Mobile – Consider how mobile interacts with enterprise solutions Aug '07 FinNode '07 14
  • 15. IBDN: Why Office 2.0 Matters Business Models • Predominantly free trial followed by subscription model – Subscriptions seem to vary between $5 - $35 pm • Software license fees • White label • Support fees • Professional service fees • Software As Service (SaaS) model (Software.com & AppExchange) • Advertising (Spresent) Aug '07 FinNode '07 15
  • 16. IBDN: Why Office 2.0 Matters Still Missing/Challenges • Search/Discovery large part that still missing & how collaboration plays with it • Enterprise & business application compliance & integration – how it fits in with current business processes, applications & security – Integration with IT applications and how fits in value chain – still big barrier – Scalability & support – Partnering – how to continue to partner with vendor partners to build out suite of functionalities with existing business applications – What is context with other business applications within the enterprise • IT not sure what to do with these technologies – currently blocking instead of embracing. API’s could help play a role to manage the security concerns. • Potential threat from big guys e.g. IBM, Microsoft & Google – how to differentiate • Flexibility to make solution as widely applicable as possible – How to make it affordable and work on any OS and Web browser Aug '07 FinNode '07 16
  • 17. iHollywood Forum Panel Discussion What Social Media Means to Hollywood Panelists • Jason Kirk – Dir. Marketing and Content, Myspace • Jason Nadler - Agent, UTA • Mike Walsh - CEO, Leverage Software • John Huffman IV - CEO, Real Hip Hop, LLC • Consumer Focus Group, Myspace users Main Trends • How success is defined has changed – 100k communities could be as valuable as large 1 mil+ communities • Key drivers to build successful communities – Value to community – How add value to grow the community – All about content & business model – content needs to be measurable and portable Google is not just a search company – they are now the 5th major entertainment company all because of the pull • the have – Top 5 companies for advertising revenue • Community will easily abort the site for other choices if they feel there is not enough value or feeling “spammed” – Myspace is old, Facebook is the new attraction Business Models • Build multiple revenue streams & be flexible – “Real money = people visiting your community – Myspace” • Models starting to become more like “TV” model Still Missing/Challenges • Can people create compelling UGC content remains a challenge => WHAT IS THE STORY! Aug '07 FinNode '07 17
  • 18. Digital Hollywood, Spring Contextual Media & Advertising (1) Transforming and Redefining the Relationship Between the Consumer, Advertising and Media Platforms Main Trends • Mobile – best platform for location based ads (contextual ads) – media co’s not leveraging it – Mobile advertising will be highest CPM driver due to context – Another channel option to media – links voice and presence to print media and other media • Marketing managers need to get out of their silos – Not listening to expectations and how newer generation is consuming media on different platforms • Views communities as “niche-nomics”. What is approach to niche audience and how to serve them? • Technology becoming more efficient to reach niche audiences and markets – what is value to these niche audiences? • Changing landscape – shift from media powering distribution to people starting to power media & distribution • Tools for people to manage their online life and media starting to emerge – Facebook starting to provide tools and opening up platform for developers to provide tools to the community • Ad agencies and Publishing houses getting into newers spaces, especially UGC – Doritos UGC add during Superbowl – Best channels to scale up UGC content & quality • Discovery of content becoming more complex – how to get content discovered by aggregators • Brands have “lost” their message – need to listen to audience and determine what value they bring to audience • Advertising shift – not just dominated by main brands any longer – context/local advertising opportunities opening up Aug '07 FinNode '07 18
  • 19. Digital Hollywood, Spring Contextual Media & Advertising (2) Business Models • Mobile Advertising – CPM highest driver • Models are changing and becoming more complex – need to be flexible Still Missing/Challenges • Tools for people to look at ads once have time – “grab it now and deal with it later” • Tools for managing your online life and media still lacking • Tools for content discovery & getting picked up by main channels/aggregators • Discovery and linking up of the right advertisers based on context and value to community Panelists • Alan Cohen - EVP & MD, Innovations & Entertainment Initiative • Tim Hanlon - SVP Ventures, Denuo (a Publicis Groupe Company) • Michael Pond - Media Analyst, Nielsen Netratings • Keith Tomatore - VP of Sales Development & Operations, Manager of Newsweek, Budget Travel, Washingtonpost & Newsweek Interactive • Jeremy Lockhorn - Dir. Emerging Media & Video Innovation, AvanueA – Razorfish • Kevin J. McGurn - VP Advertising,> nbbc & NBC • Saleel Sathe – group Product Manager, Microsoft adCenter • Doug Scott – Senior Partner & Executive Director, Mather Productions Branded Content & Entertainment, Ogilvy & Mather Aug '07 FinNode '07 19
  • 20. Digital Hollywood, Spring Mobile & Broadband Music (1) New Platforms + New Technology + More Music + Dynamic Marketplace Main Trends • Increased investments in acquiring publisher catalogs – Whoever owns the catalogs will generate most revenues – Record labels diminishing due to digital distribution If have own catalogs, looking more like publisher • Content not viewed as free – Looking more at advertising models to off-set cost • “Freemium” services starting to increase – discovery key driver • Mobile – Side loading very important as data charges still very high – Sees carriers will be important partners – can brand and theme services more easily and offer large scale • Store and forward model will drive discovery • Distribution model moving from broadcast to sharing – Shift of model from batting on x artists and having 1 success to making little money on more artists through more channels – Artists looking at how to partner with more marketing partners – Labels starting to develop more services around artists and their music • SNS music services impact – driving a new brand of musician “cult of the amateur” – Cost of unknown musician acquisition much lower than label route – Reduced quality – does it really matter? – Users don’t care if artists are not signed – want more choice – Artists empowered to distribute own music without labels – Branding of artist as complete “service” (live acts, concerts, web, mobile) • No longer a viable business in selling music – shift to selling an experience – New generation don’t pay for music but an experience (“other stuff packaged around music) (iTunes) • How to make the sale now without need to download track at that point in time • DRM issue disappearing, main issue is accounting and how to manage various distribution channels Aug '07 FinNode '07 20
  • 21. Digital Hollywood, Spring Mobile & Broadband Music (2) Business Models • Passive income from catalogs still main diver • Advertising to play larger role but still not significant • Combination of different models – subscription, free, freemium, merchandizing, downloads, ringtones Still Missing/Challenges • Cost of data charges still barrier for distribution • Discovery • Management of multiple distribution channels & accounting for revenue share Panelists • Dale (Ty) Roberts - CTO, Gracenote • Tim Buchner - CEO, Zing • Scott Campbell - VP Bus Dev, Digital Media, Arbinet-thexhange • Ken Hertz – Entertainment Attorney, Sr. Partner, Goldring Hertz & Lichtenstein LLP • Daren Gill – Sr. VP Product Development, ChoiceStream • Will Buss - Group Manager Music, Sprint Wireless Data Business Development • David Thompson - Content Acquisition Manger, Music and Video/ Mobile TV, Sony Ericsson • Ted Cohen - Managing Partner, TAG Strategic Aug '07 FinNode '07 21
  • 22. Digital Hollywood, Spring Hollywood Reinvented (1) Internet Video, Mobile, User Generated Media, IPTV and Broadband as Next Generation Mass Media Programming and Big Business Main Trends • All about different content for different devices – not porting • Shift to focus on experience and context • Increased flexibility and more experimentation of different media – Shift from old model where developing new content over 6 months and reviewing data to new model – throw it out there and see what happens – All about monetizing content effectively across multiple platforms & media – Where is content genre & what would be the strategy for distribution per genre • Engaging consumers more in media – How to engage consumers & allow them to experiment - then see what happens • What is value that provide to advertiser? • Program for specific experience for all platforms – Continue to grow from traditional business • New entrants like Juiced starting to help redefine the model and posing threat to traditional media companies • UGC – Viewed as new genre that can live well beside classic content – Stimulating increase of more professionally produced short form content – Current lack of “hits” in UGC but expect it to change soon – Great platform for self-expression and high value to provide this platform to consumers – “UGC = user distributed content” - becoming an increasingly important distribution channel for media companies • Starting to see more tools for users to incorporate content into their online life (classic & UGC) from media companies • Online life extending views and time that people consume content – MSN sees 90% of views happen up to 3 days after shows/events • Mobile – Still a while to go before will see good video adoption – does not see it as main channel for video-on-the-go and distribution yet – Advertisers sill don’t get it for mobile – Music seems to still drive content for mobile Aug '07 FinNode '07 22
  • 23. Digital Hollywood, Spring Hollywood Reinvented (2) Business Models • UGC – some media companies are looking at ad based revenues to monetize • Advertising still main part (traditional models) • New models starting to emerge, especially in music distribution – pay per view/download Still Missing/Challenges • UGC monetization remains a question • Tools for incorporating media in consumers’ online lifes to non-media own sites such as Myspace, Facebook • Shift in privacy policies to allow users to remix classic content and make it their own as well as share it Panelists • Walter Delph – Dir. Content & Programming, Verizon FiOS TV • Mark Yackanich - VP of Strategy and Development, >nbbc, NBC • Rob Bennett – GM Video & Entertainment, MSN, Microsoft • Bill Stratton – VP Bus Dev, Turner Broadcasting • Jon Cody – VP, Fox Digital Media and Acting GM for NBC/News Corp. Joint Venture • Andrew Wallenstein - Digital Media and Television Features Editor, The Hollywood Reporter Aug '07 FinNode '07 23
  • 24. Digital Hollywood, Spring Publishing 2.0 (1) “How Multi-Platform Newspaper and Magazine Strategies Are Transforming the Publishing Landscape” Main Trends • Environment becoming more competitive – moving to monetizing and building additional audience for traditional print media – “local focus is only way to win battle – differentiate nationally – LA Times” – “create profitable branded sites that maximize revenue streams, drive traffic to these sites, syndicatie content to help build stickiness – Hearst” • Integration of professional content with UGC – evolution of editorial product – Adding social news component to reporting (DIGG model) – News reporters starting more own blogs to stimulate social news component and keep audience active within newspaper community Reporter becomes the “star” – build “fan” communities around reporters Bloggers are most loyal readers of publications Blogs managed through editorial process 20% of readers active in blogs – USA today Users posting more photos and generating more stories to leverage from with better than expected quality “Users are talented – USA Today” – Increase experimentation in engaging audience – model moving from 1-to-many to many-to-many communication – Audience allowed to put on own pages on news sites • Growing opportunities to tell stories through multiple channels – leveraging “old” media reporting • Interaction allows for getting more data – e.g. voting/polling or discussions around political debates or stock market (use audience to get “true” pulse) – Refer to Binkie the snowman with presidential debates that won the debate • New channels emerging – Podcasts via iTunes, SNS such as YouTube, mobile – Use these channels to draw people back to news site – More partnering with SNS sites see more headlines appearing on SNS sites such as Google & Yahoo! – New channels provide access to opportunities e.g. video without paying TV huge fees, esp. Podcasts Aug '07 FinNode '07 24
  • 25. Digital Hollywood, Spring Publishing 2.0 (2) “How Multi-Platform Newspaper and Magazine Strategies Are Transforming the Publishing Landscape” Main Trends (cont) • Video seen as main driver for subscription sites. • Platforms – see more inhouse development for tools to enable syndication, linking advertisers to audience – Buy commodity functions, integrate state of art, build applications to differentiate – Hearst • Online drives down customer acquisition cost – huge savings to move subscribers online & lowerinf marketing costs – Hearst: from $25 to $3, Sees savings of $15 mil in 2007 alone • Online is changing face of reporting – opens up huge universe of many new readers. User consumption behavior changing causing a model shift – Shift from broadcast reporting to engaged reporting through conversation between reporters & readers – Move toward context based reporting (Hyper-local concept) – - “Write for the Web first – USA today” – Old – products centric vs. New – customer centric – Old – intuited/delivered behavior vs. New – actual behavior – Old – monthly/quarterly updates vs. New – real time – Old – product reference vs. New – content preference – Paying field of newspapers vs. TV being leveled – traditional TV starting to be challenged • More incorporation of video through webi-sodes in partnership with studios. • Forget about walled garden approach as users will go elsewhere – Provide avenues to access content from other sites e.g USA today provides ESPN RSS headlines from site. • What is value for the community and how can tap into community – give back to community through online and print versions – USA today have column in print version of most talked about UGC & comments • All about EXPERIENCE – “How to tell compelling stories through as media rich experience as possible – Business 2.0” Aug '07 FinNode '07 25
  • 26. Digital Hollywood, Spring Publishing 2.0 (3) Business Models • Advertising still predominant model – more models for add placements emerging – Brands, digital agencies, print agencies Hearst developed management platform enabling access for these advertisers and saw 60% increase in revenues in 1st six months – • Subscriptions – drive print subscriptions via online strategies – WSJ looking at “free” access in order to increase subscriptions • Content licensing e.g. Podcasting, MobileTV Still Missing/Challenges • Accessibility and distribution through multiple platforms remain a challenge • Sees ad revenues due to Google diminishing, however it creates more opportunities for attracting more targeted advertisers – how to leverage this? • Challenge with perceived cannibalization of current revenue streams. • Scaleable platforms • Digital strategy for most players still missing • Sourcing of tools for enabling more channels, advertisers and user interaction still an issue – Starting to do more own development which is not part of core – would prefer not to do this but see no choice Panelists • Jim Brady - Exec Editor, WashingtonPost.com • Robertson Barrett - VP, Interactive and General Manager, latimes.com • Jason Schaeffer – Dir. of Business and Audience Development, Dow Jones Online • Philip Elmer-DeWitt - Exec Editor, Business 2.0 • John Loughlin - EVP/GM, Hearst Magazines • Joel Sucherman - Exec Producer, USAToday • Sue Cross - VP Online, U.S. Newspaper and Magazine Markets, Associated Press Aug '07 FinNode '07 26
  • 27. Digital Hollywood, Spring Broadband as Entertainment Platform (1) Content, Advertising and Branding Main Trends • More syndication of content vs. proprietary content • Shifts in distribution channels – more channels and opportunities opening up • SNS, Online & distribution – Communities integral to Web as opposed to broadcast TV where there is no interaction with community – Online allows for broader reach – international vs. national/local – TV still deemed to be more efficient to distribute with higher quality – Shift to creating content for niche audiences where audiences can interact with content – clip/share/mashup (NBC) • UGC vs. professional content – Consumers still prefer professionally generated content – UGC quality improving but not comparable to professional content – Professional content still more “trusted” – Changing from linear programming to on-demand programming – Short form content starting to play a larger role due to on-demand nature for content consumption • Model Shifts – shifting from creating content, then branding and advertising to distribution -> creating content with advertising/branding & distribution strategy upfront in partnership with branding/advertising agencies (NBC partnership with Netflix) – Distributor starting to hold the power – Look at smaller niche audiences – smaller slices of audiences for different mediums & creating new forms of programming for these niche audiences – Privacy/copy right debate shifting – studios and media companies want users to interact more with content but not sure yet how to deal with privacy/copy right issues with it – Agencies role changing – how to match up brand & how want to communicate brand & allow for interaction Increased role for short form content creation Aug '07 FinNode '07 27
  • 28. Digital Hollywood, Spring Broadband as Entertainment Platform (2) Business Models • Starting to see a shift from subscription to advertising revenues • More monetization starting to happen through sponsorships of experiences • Syndication and licensing Still Missing/Challenges • Targeting right content to right people at right time with right quality • How to bring in advertising based on the different channels being used • Discovery and marketing of content through multiple channels • Finding the balance for the right content for a specific niche market through right distributor • New copy right/privacy rules suitable for new digital environment – legal side is lagging • Tools for managing copy right & privacy is missing – sees that technology does exist in some form from Yahoo! Panelists • Matthew Evans -VP Digital Media and head of NBC Universal Digital Studios • Jordan Levin - Founder, Generate (former CEO, The WB) • Silvio Scaglia - Founder, Babelgum • Mike Folgner - GM Video, Yahoo! • Bernard Tani - VP VOD, Orange – France Telecom • Jon Fine - Columnist, BusinessWeek, Moderator Aug '07 FinNode '07 28
  • 29. IBDN: Entertainment & Media Music session • Panelists: Rafe Needleman, Webware/CNET, Sean Crawford, Dir. Home Services, Orange FT Group, Peter Daley, Equity Research Analyst, Rutberg & Co, Steve Horowitz, VP Media Innovation, Yahoo! • Companies: iLike, MOG, ReverbNation, Splicemusic.com Games session • Panelists: Rafe Needleman, Webware/CNET, David Hornik, GP, August Capital, Sam Klepper, GM, MSN Media Network Group, Alexander Marquez, Dir. Strategic Investments, Intel Capital • Companies: Bunchball, Flowplay, Hothead Games, Kongregate Virtual Worlds session • Panelists: Rafe Needleman, Webware/CNET, Chris Carvalho, Dir. Business Development, Lucasfilm, Simon Hayhurst, Dir. Product Management, Adobe, Alexander Marquez, Intel Capital • Companies: Doppelganger, Kaneva, Meez, Multiverse Keynote - Jeff, Yapp, EVP, MTV Networks Music & Logo Enterprise Group Aug '07 FinNode '07 29
  • 30. IBDN: Entertainment & Media Main Trends (1) • Facebook becoming one of the de-facto launch platforms for different communities and applications – iLike music service • MySpace viewed as a closed community – Facebook model taking the lead • iTunes seen as major platform for music distribution, pull in from SNS sites like Facebook, YouTube and MySpace • Self expression tools starting to take the stage – MOG music sharing & recommendation service focussing on tools • Mobile – Still seen as early days and too limiting in US – Mobile U/I very “simple” form for services - “the limited edition” – Everyone talking to do mobile but not sure how Mostly partnership discussions & views, do not want to do development work – Seen as complex and high cost – Games – good billing platform but see carriers as only ones making money & controlling distribution • Marketing related tools increasing e.g. linking brands & advertising to the right communities • Music moving fast into SNS distribution space – Indy label bands driving the trend of self promotion through SNS sites – Distribution model changing away from old label model. Labels still important but focus more on “hit” bands/artists – See shift from creators/publishers ;> sharing ;> consumers. Find, create, edit, share & consume music – Main labels starting to loose ground to services that use SNS technologies to promote new bands/artists Aug '07 FinNode '07 30
  • 31. IBDN: Entertainment & Media Main Trends (2) • Games – similar to music, “hit” driven industry – Games being used to attract core audience for community ESPN, Facebook – Moving to more casual games for MMOG (massive multiplayer player online games) that is where the money is and cheaper to do Avg. session length – 40 min – Starting to see some aggregation and services to aggregate games to sell/license to large SNS sites – Drive interest through casual games then upsell to hard core games – Technology matured to distribute casual games through SNS sites – More creation of episodes – test new concepts first through casual games before spending the money to create the big, costly game Makes monetization of games easier – More brands getting into the game e.g. clothing for avatars – Model shift from high budget game creation for small number of consumers (retail) (300k playstations) to small budget & getting games out quickly (SNS) – Starting to see “recommender” sites – how to find games – More social features integrated with games Kingregate – increasing by 200 new games/month, partner with Facebook (YouTube model) – Indy gaming model starting to ramp up with more UGC Aug '07 FinNode '07 31
  • 32. IBDN: Entertainment & Media Main Trends (3) • Own landing sites harder to promote – looking to drive audience via established communities & integration to these communities – Facebook, YouTube • Investment community looking for multiple revenue stream components – advertising is not enough • All about selling an experience and allowing for interactions • Virtual Worlds next generation for SNS – Starting to see more integration between 2D & 3D Porting of avatars between 3D & 2D (porting of online ID) Driving audience from 2D to 3D (MTV) Still early days but growing fast Extending experience between different platforms (2D/SNS, 3D, Mobile) Doppelganger starting to experiment with SMS fo chat with avatar from mobile • Echo-Boomers & Millenials driving audience (tweens – 34 yr olds) – Tweens – predominantly 2D, Older – predominantly 3D • Content starting to play larger roll in building community – SNS – connect, influence, express – Entertainment – share & discover – Games – interact, compete, “fun” factor • People participate in multiple SNS sites – Different sites for different experiences Aug '07 FinNode '07 32
  • 33. IBDN: Entertainment & Media Main Trends (4) • Concept of online ID is pretty global – no market difference – Opens up large international market as barriers for multiple market acceptance is coming down Female market driving market – take more time to create & build their online ID & personality • US is seen as top advertisement market – 82% of market share from US • Churn a major issue – people get bored fast and move on • MTV keynote – Looking at how to cross between video & content – converged media (linear media, UGC & virtual/SNS) 4DTV – TV meets virtual – Providing value for audience is key – Experience fast growth in virtual worlds Avg session: 40 min at least 1.6 times a week – Brand interaction for online is different as people create different online persona Presents challenge for brands (new dimension) Past model – marketing experience to now model where consumers control the brand message. Scary but if get right, could lead to huge rewards Brands will start moving into creating brands and expressions for interaction – Audience becomes the content in 4DTV – “real” TV on steriods Start as fans, participate, become content – Moving into creating platform & then let audience take over – Music is passion for MTV audience – building serviecs and experience around this passion – People watch shows, then move to online sites – extends experience up to 3 days after shows Demographics same as for shows – Mobile – starting to look at it for 2008 VW – Web – mobile Porting of avatar between different platforms Views mobile as critical, nut not sure how to port the experience between platforms Aug '07 FinNode '07 33
  • 34. IBDN: Entertainment & Media Business Models • Music – Free, advertising, downloads, ticketing • Syndication across multiple SNS sites – Labels, brands, management companies, brokers • Transaction – mechandise, downloads, virtual items • Subscription (consumer & B-B) • Advertising still leading the pack • Sponsorships • Freemium • Rewards (music) • Virtual worlds – Brand advertising, virtual items, sponsors -1/3 virtual items sales 2/3 ads • Licensing • Retail (games) Aug '07 FinNode '07 34
  • 35. IBDN: Entertainment & Media Still Missing/Challenges • Tools for self-expression • Tools for analysis of community and community behavior – How to gain visibility in SNS communities and measure visibility • Differentiator becoming biggest challenge – What makes one SNS site unique and what would keep people there? – How to defend the services against big boys and other competitors • How to sell a marketing service, not technology main channel for most companies • Integration to popular sites and tools for integration • Tools for linking into the desktop • Non-credit card transaction platforms for transaction based charging • Back office for transaction accounting and revenue shares – Becoming more complex • Customer acquisition a challenge • How to measure success & retention of customers • Discover still an issue • How to retain the audience/ build loyalty – Zango attracted audience with video, stick around for games, stick around for other content • Extending SNS experience to mobile – porting does not work as device is too small and seen as limiting • How to create a content economy bringing together content & advertising partners & consumers • UI still an issue – if users don’t connect quickly, they leave Aug '07 FinNode '07 35
  • 36. Millenials and Media conference Panelists • Leeann Prescott, Hitwise / Teemu Huuhtanen, Habbo / Mattias Miksche, Stardoll (digital paper dolls) / Millenials panel with six teens as panelists Main Trends • The web users have learnt more about what they can expect to get for free and what can be expected to have a price tag on it. • Current younger generation is more lined to common interests than by ethnicity. • Content creation from scratch and/or lots of existing content Business Models • Free basic use and charges related to virtual goods • Viral marketing Still Missing / Challenges • Create high switching cost by giving often new tools and stuff to use. “There is no market for me-too services: find your unique spot and provide only the stuff that you need to provide.” Aug '07 FinNode '07 36
  • 37. MediaX seminar at Stanford Speakers • Dan McFarland, Stanford / BJ Fogg, Stanford Main Trends • Four screens: TV, computer, cell phone, and the 4th will be the digital photo frames • Digital natives and digital immigrants. • The keys in relationships are to: focus on relationships that are closest to you, share your emotions, know details of other people lives (much more important than knowing the big picture), give gifts with shared meaning Business Models • SNS as a tool for finding talent Still Missing / Challenges • “Brand is someone’s experience, and you cannot create experience for them, you can only enable their experience.” Aug '07 FinNode '07 37
  • 38. Generational Technology Seminar Panelists • Eleven 13-18 year old panelists from high schools and colleges / Sergio Monsalve, Norwest Partners / Daniel Kafie, vostu.com (a Spanish ‘facebook’ to Latin America) / Tim Kendall, Prod Mgr, Facebook / Larry Magid, internet safety advocate / Chi-Hua Chein, Accel Partners Main Trends • ‘The whole idea of social networking sites is to network people who are friends or who share a common interest' • 'I choose my social network service platform based on what others use‘, 'We transfer to other social networks when others do that' Business Models • Viral spreading: Facebook had a great lock-in as the new students who arrive to school will join the same social network platform there all existing students already are in. Still Missing / Challenges • Hyper communicative multitasking teens of today bore easily • Online safety problems are today often over emphasized Aug '07 FinNode '07 38
  • 39. Web 2.0 Summit Panelists and speakers • Tens of speakers, panellists and commentators. Some of the presentations are available at http://www.web2summit.com/pub/w/62/presentations.html Main Trends • Virtual worlds and virtual communities are REAL for today’s youth • Simplicity vs. Lots of stuff: both seem to work • Lots of discussion about the social graph: the connections of a person Business Models • Advertising in SNS: SMO Social Media Optimization • Give money for a good purpose as part of a community: case Tree-nation.com • Development platforms: MySpace will provide an API, Facebook has already one Still Missing / Challenges • The general norms and policies for SNS are still missing • The first easy-to-use mashup tools have started to emerge, such as Popfly by Microsoft • TV studios are looking for ways to get community to participate, state-of-the-art case is Current.com (social media + community involvement + news) • CBS says: 'You must be part of conversation related to your content’ Aug '07 FinNode '07 39
  • 40. Mobile Mash-up: Case Nokia Interviewee • Tero Ojanperä, future VP of Entertainment and Communities Main Trends • New Nokia’s group will be run by Ojanperä after 2007: music / video / gaming / communities • 'Portal approach is dead now when people want to mash up their world.’ • Rapid development cycles: Get a version out and learn from that. MOSH was started a year ago. • Nokia’s 2010 goal is to have 300m internet capable devices in use. • 'The next billion customers are coming from emerging markets' Business Models • Joint creation of new REAL markets: 'It is not about sharing pieces of pie that does not exist. It is about jointly creating the pie.' Aug '07 FinNode '07 40
  • 41. Mobile mash-up: State of communities panel Panelists • Twango, Serena Glover / Bebo, Jessica Alter / Kevin Yen, YouTube / Matthew Rothenberh, Flickr Main Trends • OpenSocial is a standard for social network service developers developed by Google • Flash communities is a term for communities that form during events • 'No way of making just mobile or just web. Mobility is a utility that is needed as part of the user's experience' Still Missing / Challenges • Social interaction is the key: Build features for supporting it. • Avoid extra clutter of the user experience • Community management and mash-up tools for flash communities are needed • 'The holy grail of content is the localization of content' Aug '07 FinNode '07 41
  • 42. Mobile mash-up: Youth panel Panelists • Ben Bajarin, Creative Strategies / Ben Keighran, Bluepulse (Enhance communications between friends, mobile only) / Jon Lunetta, MyWaves (Video to phones: MyWave to mobile phones in India is what YouTube to PCs is in the USA) Main Trends • Focus to your target audience: US demographics has 55M silver surfers, 77M baby boomers, 49M gen X, and 79M millenials. Business Models • Stickiness factor goes way up when you provide communication tools for the users. • Monetize the value of the social graph, that is, know about the connections between people. Still Missing / Challenges • Millenials grew up with technology, but even more, they grew up understanding what is possible with technology. Case: T9 keyboard over the Qwerty keyboard. • SNS is part of the communications evolution enabled by technology: 'Technology has developed to fill a human need of social interaction' Aug '07 FinNode '07 42
  • 43. Mobile mash-up: Mobile social casting panel Panelists • Tim Chang, Norwest Venture Partners / Vineet Buch, BlueRun Ventures / Daniel Graf, kyte.tv (webcasting enabler) / Michelle Law, Greylock / Rob Trice, Nokia Growth Partners Main Trends • Combination of mobile devices + social media + social networks + webcasting. Business Models • Basic process: Be viral engage users monetize • Destination site vs. enabler. Choose which you are. • 'The business model for social networks have not come to exist, yet. There are many experimantations, though. Good bet now is targeted adverticing. Wait for five years and you will have seen what we don’t see today.' commented Vineet Buch from BlueRun Ventures. Still Missing / Challenges • ‘Social networks are viral by definition. If a service is not viral, it is not a social network service.’ • Mobile phones: Social networks are important for sharing relevant moments. These moments do not hopefully happen in front of a PC. Aug '07 FinNode '07 43
  • 44. Mobile mash-up: Start-ups .COM companies in the fast pitch sessions: • Brring.com: Let the callers who call you listen short ads and receive 5 cents for each. • MyKidIsSafe: Remote monitoring of childrens’ online and mobile communications and content access. Database of 1500 words and parents are notified of matches in any content child accesses. • Tapatap: Contest community. Photo contests by users and so forth. • Vello. Teleconference that calls you when the meeting starts. • Vyrogames. Stress management gaming and skin conductivity reader in finger tip. • Mig33: 8m usets in 200 countries, mobile myspace & skype & ebay. 160k chatrooms. 100kb application. • Mozes: Connects bands with fans. • MyStrands: Social player that bridges the gap between mobile phone and PC. Remembers musical history and preferences. Open API to the recommendations in their database. • Social.FM: Social music service for mobile and internet. Will roll out music widgets to social network sites. • Limbo: Bid for products and the longest lasting bid is the winner. Money from adverticing. • Locr: Location data in photos. Seeing all photos and other data related to the same location. • Mimomi: Search songs based on name, singing, humming. Users can sing a song that is missing from the database, and others will then see his photo and rate the performance. Aug '07 FinNode '07 44
  • 45. Mobile mash-up: Future of connected communities Panelists • Alex Soojung-Kim Pang, IFTF / Andrew Fiore, UC Berkeley / Scott Golder, HP Labs / Marc Davis, Yahoo! / Eric Paulos, Intel Research Main Trends • ‘Mobile phones are prostethic devises that connect us to the physical world.’ • We will see much bigger transformations than we can now envision. News, organizational structures, almost everything will see big changes. Business Models • Anchor your service to basics. Communication tools and systems are changing. Fundamental motivations of people will not change that much. Still Missing / Challenges • Need solutions for information overload problem. • Need to remember that there are different types of communities: Social networks are communities where people really know each others and attention networks are people putting attention to same direction. • We need an architecture of participation in the future. • Bring in sociologists and psychologists Aug '07 FinNode '07 45
  • 46. MyNet Interviews
  • 47. Interview – mBuzzy (Social Content & Entertainment) Background • Community to create, share & find content (UGC & published) – Upload & share from Mobile & Internet – Personalization of phone with own content – bring together personalization with social interaction, information and entertainment – Community rates and recommends content • 13+ million downloads – Just launched video – 30+ k downloads (10% of content) – Video tracks limited number of video phones • Age of community – 20-36 yrs • Distribution channel for developers to distribute content & games Business Model • Free • Revenue share – Premium Content Sales (not main focus) – Merchandizing (phones & accessories) • Advertising • 1st with off-portal content distribution (not linked to carrier portals) Main Trends • Direct to consumer business model – no carrier sales • Partnering with developer and merchandising partners to bring those services/content to site • Personalization of experience key value proposition • Viral marketing, similar to SNS on Internet Aug '07 FinNode '07 47
  • 48. Interview – Yahoo! Connected Life (Search and SNS) Background • Extend Yahoo! social sites to mobile through OneSearch, Yahoo!Go, Flickr and Java applications • Enrich & simplify mobile experience Business Model • Free • Advertising • Direct to Consumer from Yahoo! portal, carrier portals and device vendors – deals with AT&T & Motorola Main Trends • Flexible distribution models to gain access to as wide audience as possible • Target all tier handsets – main platforms are Motorola, Nokia, RIM & Samsung – Base access through Wap browser – Light client Yahoo!Go • LBS playing larger role in applications – Context becoming more important • Provide simple/standardized interface for content publishers • Mobile advertising gaining more importance – starting to see a play and see with right approach user purchases from mobile will increase – have been doing mobile advertising fro more than 2 years (banners & search) • Focus on user experience & social interaction – Same experience for Web & Mobile • “If you give people the tools that are easy & make things more useful, more people will use it” • See lot of commonality between Digital home and Mobile Aug '07 FinNode '07 48
  • 49. Interview – Norwest Venture Partners (VC) Background • Early stage VC - $2.6 Billion fund, 500+ investments, 50+ companies still active Business Models • All you can eat data plans allow for various business models on mobile • Advertising still king, then “Freemium”– free, then upsell • “Bling” models starting to gain traction, especially in virtual worlds (virtual item sales e.g. clothing for avatars) - Micropayment models Main Trends • Internet to mobile – start applications on Internet then extend it to Mobile • LBS and Mobile advertising starting to move • Media Content Distribution & Delivery – starting to see better transcoding solutions and real time transcoding that will allow for media delivery to any device • Mobile browser evolution. See evolution moving in two main ways – client/server browser technologies and “Citrix” approach – Transcoding still an issue to allow for mobile browser to work – server or device? – Mips & memory on device more an issue than bandwidth – Mobile Ajax & widget technologies starting to increase – will help drive better mobile experience as app standardizatoin e.g. JSR takes too long – Shift from app centric phone desktop to people, then app centric mobile phone desktop • Adoption of data on carriers still low – opt in model in US, other models emerging – Iphone model starting to change it as user has to sign up for data plan (MP) – Helio use Myspace mobile & Friendster to drive adoption • Do not see that standalone apps will fly – need to bundle in apps ((Limbo, 3Jam, Mozes) – Use “old plumbing” like SMS to help drive services • Web 2.0 moving into more personalization & self expression through content (Eyespot, Endigo, UGrouper & Jaiko) • UGC – edit/remix/mashup/sharing. More widgets and see that more users will create & share more content Aug '07 FinNode '07 49
  • 50. Interview – Kaboodle (Social Shopping) Background • Social shopping community – discover, recommend, share and rate products. Include style buying choices into shopping – still in Beta phase and not launched yet • Tie together entire buying cycle, from discovery to price • 100k registered users, 1 mil unique visitors per month -(10 months to reach 100k users without advertising) • Demographics – 77% female, 27% male, High Household Income ($>100k) Business Models • Advertising –attracting major brands – signed deals with brands (P&G) • Partnering – eBay, Condenast, Shopping.com • Syndication of some of content of site • Viral marketing and partner marketing • Potential for merchandising revenue share, but difficult to track Main Trends • Style buying – people with similar style want to see what & where people buy products • Mobile on roadmap – extension of Web site. – Strategy not clear on how to do mobile. Possibly start to include photo sharing when people are shopping • Community needs to be separate from commercial shopping site – people don’t like products to be “pushed” • Build community first, once it is done, then revenue will start flowing • Integration of other SNS tehcnologies – RSS, private tags, wiki • Started with Google but struggling with context of Google adds. Moving away into own signed brand deals for ads – Major brands want to interact & get feedback from community • Community and own policing for offensive content Aug '07 FinNode '07 50
  • 51. Interview – Google Mobile (Search & SNS) Background • Mobile application group of Google – 100 people. • Focus on extending the Google experience to mobile platforms, both for Wap and applications. • Current mobile applications include Google Maps, Google Search & Gmail. Google Maps on Mobile for Helio and Vodafone includes GPS integration for LBS related services. • Focus on 3 areas: Search providing access to information, Location, Communication & Community (Gmail) Business Models • Banner Ads – Google search already deployed by some major carriers on carrier portals. Google do revenue share on add revenues with carriers. • Search revenues – PPC, PPI, Sponsored Links Main Trends • Style buying – people with similar style want to see what & where people buy products • Just implement the service and worry about revenues later • SNS need to tie in with how people communicate today through collaborative services & what they are doing – Dynamic address book integrating friend’s and what they do & where they are – similar to Jaiko – Integrate other SNS components as well as other mobile specific components (context) • Communication moving from 1-to-1 (closed) to 1-to-many and many-to-many (open & everyone can see it) • Mobile barriers & issues – Don’t look at porting Web applications to Mobile as it does not scale – look at design from mobile point of view and porting the “Web experience” to the phone – Need to keep in mind how people use their phones and integrate with phone features Aug '07 FinNode '07 51
  • 52. Interview – Cundari FSP (Advertising, PR & Branding) Background • Biggest branding & design company in Canada with accounts such as Coca Cola and WWF, BMW, DeLoitte • Define brand strategies and how brands can leverage SNS as well as interact with target groups. Business Models • Professional service fees Main Trends • Started advisor group containing various players to help educate Cundari re trends in Social Media space. Companies include Rocketboom, Shift Communications (#1 online PR firm) & Newmindspace.com • Social media in stead of brand vs. advertising vs. PR view – holistic view on how brands interact with community – Social media touches everything whereas brand, PR and advertising form islands of communications – Definition of Social Media – connecting people together, share what they know and learn from one another’s experience – Social media work across all media – all about conversations • The network is the hub & tools are everything – Strategic use of tools important for brands • Shift from broadcast mentality for pushing brand values to people to interaction/conversation between brand & people – Scary for brands – what values do they keep and what do they allow people to interact with • Branding changing into creating valuable experiences for people & communities – Focus on relationships with people – What can brand contribute to community? • Brands cannot control the community any longer • Shift in power & control – blogging is pushing power down into the hands of the individual – Major change from “broadcast” approach where brands could not hear the voices back or chose to ignore the voices • Early days for new models for brand interaction with community – all about strategy on what bring to community – Put core of brand at center & decide which part(s) give to community to interact with or allow to change/personalize • Can not create brand message for every platform any longer & becoming as complex as mobile applications space – Increasing number of web sites, community sites – how to manage this? Aug '07 FinNode '07 52
  • 53. Interview – Rupert Perry (Music & Entertainment Advisor) Background • Come from music industry background now focusing on media. Ran record companies for EMI and EMI Europe. Responsible for 24 EMI record companies • Advisor to media companies re licensing deals, IP, security, software Business Models • Licensing, per song, ring tones • Advertising starting to play a role – not clear how it fits in Main Trends • Importance of DRM disappearing in industry because of digital distribution and cost – iTunes changed model • Way people are consuming media is changing – Different parts of world moving at a different pace iTunes currently dominates online music and Amazon 2nd strongest player • • Recommender services increasing – business model not clear • Carriers dominate mobile distribution – changing in EU but not US – Issue with getting on-deck • Digital music continues to grow – especially after “legalizing” peer-to-peer distribution – Revenues still volume driven • Record companies used to be filter but that is changing to SNS companies. • Internet radio growing – allows for global vs. local consumption • Personalization of content starting to become key – SNS that specialize in specific genres may carve out good niche. • More niches appearing – use subject to communicate and attract audiences – things people are fanatical about Still missing/challenges • Discovery • Accounting – media backoffice computers not set up to cater for more complex/flexible revenue share models – Content holders need to figure out what goes where Aug '07 FinNode '07 53
  • 54. Interview – Retail Entertainment Design (Retail) Background • Entertainment retail and marketing company • Focussed on retail and online strategies for retail companies • Broad customer base – from hotels to clothing to entertainment Business Models • Advertising & merchandizing Main Trends • Retailers expanding physical store to online/virtual store – Guess expanding clothing into Virtual Worlds – Virgin Megastore doing video and broadcast in-store and online-store – Penthouse seen some success in Second Life • Still early days for participation in SNS communities, but growing interest • Audience has ability to filter in SNS – double edged sword for brands as community has power to embrace or sink a brand – If brand message is not compelling, people will not interact – Brands starting to include target community to define & promote message e.g. MacDonalds involving mothers in healthier choice drive • Large brands starting to form fragmented brands appealing to different audiences – Virtual Worlds becoming a new test bed to try out new niches – Second Life • Measurement of success becoming more complex – expanding from CTR (Click Through Rate) – Nielson looking at non-traditional trends • Mobile – still early days. Starting to experiment with mobi-sodes, advertising and LBS based advertising on maps. Context to play larger role • Adding more experience value to attract audience e.g. use of music videos online and in-store Still Missing/Challenges • How participate in online communities without being seen as pushing merchandise (offensive) • Branding and positioning in various communities to be redefined on how people can interact with the brand – How do brands defend “negative” feedback from community? • How to measure success of a brand in this new world? Aug '07 FinNode '07 54
  • 55. Interview – Ken Hertz (Legal) Background • Licensing, copyright legal advisor for Entertainment industry • Business Models • Predominantly advertising driven – CPU’s around 12-20c a piece and dropping • Transaction based models starting to pick up – Potential for SNS to become largest “flea markets” from merchandising point of view Main Trends • Complete adoption and penetration of SNS sites for teens & tweens in US • SNS sites have enormous cloud (Myspace & Facebook) • Mainstream is crowded, mode niche SNS sites popping up • 2-3 SNS sites seem max. no of sites people tend to go to. • SNS becoming 4th communication tool past voice, IM & email. • Communication move from one-one to one-many and many-many • Companies looking at how can leverage SNS & to create presence in these communities • Challenge on content and copyright models starting to shift licensing changes • UGC on the increase and people starting to do own ‘infomercials” • DRM is becoming less relevant – going to be built in a different way - See it move into a “trust” model • Will start seeing a meld between SNS & dating services driven by Virtual Worlds Still Missing/Challenges • US Mobile carriers need to find a way how to participate & give access – Helio & Myspace deal – Access to complex, need to be simpler e.g. iPhone – Need to see how to use SNS to turn phone into an environment • How to segment services in niche SNS communities – How to add more affinity services that can drive up CPU’s • Unified connectivity between sites • Personalization & interoperability between sites (Trillian IM model) • How to filter overload of information in multiple communities • Licensing aspects a barrier – a lot of content sharing looking like file sharing – model needs to change to blanket agreement Aug '07 FinNode '07 55
  • 56. Interview – Collaborative Strategies (Office 2.0) Background • Focus on virtual team works space. • David Coleman is author of Collaborate 2.0 (new book) Main Trends • Integration of synchronous vs. async communication tools in work place – More collaboration similar to SNS on Internet • Start of mobile collaboration – still early days • Move from publishing (doc management – content focus) to collaboration (community) through IM, wikis, blogs, sharing, conferencing, social tagging – Create, share, mashup, interact • Self service driving new services/applications – Users can create their own applications and share with rest of workplace Still Missing/Challenges • Security – IT not sure what to do with this or how to manage this • Integration to other business applications • How to manage confidentiality as applications become more “open” Aug '07 FinNode '07 56
  • 57. Interview – DC Netcast (Platform & Advertising) Background • Platform for micro-community social networks • Focus on social networking services needs for micro-communities and how to leverage from advertising for these communities Business Models • Advertising • Per event cost e.g. SMS, calls • Subscriptions – more difficult to justify if there is no perceived value Main Trends • Most people interact in small communities, not global communities • Advertisers looking for targeting of specific communities/groups or users – Global community e.g. MySpace & others not meeting needs – Difficult to differentiate within these global community sites – Agencies very specific to regional branding, not global branding – Smaller advertisers are regionally/local market focused, do not gain from “global” community play • People use SNS sites to connect and promote themselves – create their own “fan club” – Trend to increase, but how to do it in targeted and non-intrusive way to leverage from advertisers • Niche communities could increase CPM – Case: Dogster able to leverage > $20 CPM and sustaining it • Mobile becoming more prevalent Still missing/Challenges • Controls and reporting for advertising agencies to leverage from SNS e.g. issue Virgin had with Facebook forcing then to pull all its ads – Use reporting tools agencies are familiar with to measure effectiveness of campaign • Mobile billing mechanisms still an issue to encourage rich media play – Content will have value if can get advertisers to sponsor it, consumers only willing to pay for person-to-person communication • Still long way to go to see how to communicate between the mobile & fixed SNS worlds, not just porting of applications • Major brands still don’t understand buying media online - still in “old” broadcast mode. Still learning how to establish online campaigns and get resources in place to support online campaigns Aug '07 FinNode '07 57
  • 58. Interview set 1 Thoughts by • Susanna Kass (Open source special interest group) / Marc Brandt, CEO, CurbsideMD / Joe McCarthy, Principal Scientist, NRC Palo Alto / Yale Bernstein, Professor, UC Berkeley / Tony Mak, Founder, Vavaz (simple mobile games to get people to the social network) Main Trends • Social network services for special interest groups, such as CurbsideMD • Reality online community sites are popping up • Stickiness with games and fun game type services Business Models • Software companies are looking for social networking as an enabling tool for connecting developers to their development platform • Freemium model: ads plus couple of additional things with subscription Still Missing / Challenges • User experimentation: lack of structure for flexibility, case MySpace • Validity of the person in social network site: is that a real person, a fake identity posting positive comments of his own work, or what? Aug '07 FinNode '07 58
  • 59. Interview set 2 Thoughts by • Steven Reding, Dogster (SNS) / Oren Michels, CEO, Mashery (API tools) / Ben Keighran, CEO, Bluepulse (Mobile SNS) Main Trends • Community is about passion sets: find out what they are and keep that as the core when adding entertainment, information and technology. • 10 000 users is good enough if that is a special group. • Consumers want communication tools, personalization and free content. Business Models • Sell aggregated data. Case MyBlogLog with 250 million log entries. Still Missing / Challenges • You don't know where the social network service is going over time. • You need a large passionate population to use your service and then learn from them. Aug '07 FinNode '07 59
  • 60. Interview set 3 Thoughts by • Evan Tana, Derector of product marketing, Loopt / Joe Jasin, VP, SK Telecom / John Poisson, CEO, Tiny Pictures Main Trends • Location is a great enabler • Asian social network services such as Cyworld, which has over 50% of population in South Koera already as users with account. • Ownership of the whole mobile service process, such as Helio in the USA. • Begging: buy for others & ask others to buy for you. Business Models • Charging brands for brand marketing: friends of the brand and promoters of the brand. Aug '07 FinNode '07 60
  • 61. Interview - Lookery Background • Scott is serial internet entrepreneur & CEO of Lookery Business models • Advertising • b2b services revenue (send bills for your services), b2b data sales revenue • b2c revenue: The hardest is to go from zero to pennies, and Skype is a rare example of big successes. Build many revenue streams. • Freemium model: ‘Give a FULL service set for free, and more data or more often in the premium.’ • Innovative business models may develop by accident • You need a really large market size, and that has to be a REAL market. The cash often comes from other direction than you initially thought. • Get money that is in line to value you provide Main trends • Eliminate huge redundancies of technology by using existing development platforms: Facebook, Amazon, … • Experiment how your thing might take off Still missing / challenges • People are dying for analytics data. • Global vs. local content Aug '07 FinNode '07 61
  • 62. Interview –Yahoo! (1) Background • Social Media Guru, Yahoo!: 'Yahoo! is in attention business, as they invite, capture, connect and monetize attention' (intention is about what you are up to, attention is about what you focus on) Main Trends • Social network services are about large scale sociotechnical systems. Design a sociotechnical system, not an quot;applicationquot; or quot;user interfacequot;. • Mobile phone is a social and cognitive prostethic device that extends us. • when + where + who + what = mobile media metadata to compute the temporal, spatial and social location in space • Power of camera phones • Knowledge of the crowds: Knowledge is in distributed human networks. • History about you is recorded in Internet. • We are living in the middle of a huge transformation: Boundaries of organizations will be re-drawn, value chains and value creation will change dramatically, one way advertising and marketing will change into monetizing word of mouth and viral marketing, content industry will transform, … Aug '07 FinNode '07 62
  • 63. Interview –Yahoo! (2) Business Models • Cost reduction in processes • Value of meta data for advertising and/or R&D • Marketing and advertising channel • Use mobile media metadata for targeting services and advertising for the right users. Still Missing / Challenges • Sociotechnical systems must be based on people doing what they love as creators of content and meta data. • It is hard to develop services and products to people of different generations. ‘Technology is anything that was invented after you were born.’ Aug '07 FinNode '07 63
  • 64. MyNet For more information contact: pekka.parnanen@finpro.fi maria.pienaar@finpro.fi riku.makela@tekes.fi