Future of TV
Learning from China, Japan and Korea
about the future of TV and Video
Yiqun Bo, Consulting & Research Manager | +8* | www.plus8star.com
New Era, New TV Seminar | Orange Labs Beijing | December 2008
Broadband infrastructure readiness
0% 20% 40% 60% 80%
% of Internet connections above 5Mbps
(Source: Akamai, 1H2008)
Part 1 Conclusion
1. Why China, Japan and Korea?
China is the world’s largest market
Japan is the most “mobile literate”
Korea is the most “Internet literate”
2. Is advertising the only valid
Can advertising revenues
scale for video services?
China’s ad market breakdown
TV 6% of total
Hockey Stick of
“The model is flawed”
Content / $
Unclear Hope Advertisement
Source: Plus Eight Star
Facts and Assumptions
#1 | YouTube is still not profitable
#2 | Ad revenues grow “linearly” (?)
#3 | Content grows much faster
#4 | Costs follow content
#5 | Ad$/Content goes down
#6 | …囧
Founded: October, 2004
Revenue: 10 million EUR
80~90% from ads
Breakeven in Q1 2008
3 million subscribers
10 million Unique Visitors/month
2% CTR = 20x Naver! (leading portal)
P2P saves 40% expenses
Pandora TV vs. YouTube Korea
Number of Page Views for Pandora TV and YouTube Korea
Page Views (million)
Over 3 times!
Sources: Daum directory
Pandora TV | Business Models
Companies Content Creators
contents with payment
>80% of total Sharing UCC contents
• Share ad revenue with virtual currency
content creators & sharers
• Charge users premium
7 million members in
total by Jun 08 (started July 2007)
(started Aug 2007)
Breakdown by gender Breakdown by age
• Registration only
• On-video comments
– Over 1.2 billion comments on 1.1 million videos
– Average: 1,000 comments per video!
• Most of the content focus on local pop culture
– Anime, video-games, J-pop music videos, etc.
The text on the videos is based on a
timeline, which allows a new form of
asynchronous communication. In
fact, we see ourselves as a
communication service using videos
-- at “Infinity Ventures Summit”, Nov. 2008, Sapporo
Afreeca TV | Business Model
1. Premium options 3. Create / Upload / Share
2. Use of Afreeca TV’s
cybercash ‘Star Balloon’
(Broadcast + Netizen)
Organizations/ Communities Advertising Companies
Providing ad platform
What business models for mobile TV?
(data back-channel? M-commerce?)
Who pays for the infrastructure?
How to attract advertisers?
How to get the right content?
How to charge users for content?
Part 5 Conclusion
5. How about mobile?
It seems too late for broadcast mobile TV
Ecosystem hard to create
1. Why looking at China, Japan & Korea?
• Advanced and innovative markets
2. Is advertising the only valid business model?
• No, other possibilities
3. Case studies of successful services
4. What are the barriers?
• Users are willing to pay
5. How about mobile?
boyiqun +81 | Japan
+82 | Korea
firstname.lastname@example.org +86 | China
Telecom & Internet
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Adidas | E-commerce strategy for China, Japan & Korea
Bouygues Telecom | Cases studies of leading Asian Web 2.0 services
and virtual worlds
Deutsche Telekom / T-Online | Benchmark of Korean mobile & Internet
Hemisphere | Analysis of mobile marketing best practices in Japan and
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Microsoft | Analysis of Japan’s key players and market catalysts for
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China Mobile | Benchmark of Korean leading online communities
Sands Capital Management | Evaluation of China’s investment
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– Monthly column on Asian innovation for Asian Business Leaders (one of
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