This PPT gives a general overview of Web 2.0, discusses why and how Web 2.0 can be utilized to create great business opportunities. Examples and simple how-to-do list were included in the reading.

1. Turning Web 2.0
into Opportunity 2.0
Jeffrey Soong
CEO, BNS Ltd
June 2008
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BNS Ltd, all rights reserved

2. BNS Ltd
The leading IPTV content and technology
provider in the Asia-Pacific region
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BNS Ltd, all rights reserved

3. What’s Web 2.0?
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BNS Ltd, all rights reserved

4. Creating the Web 2.0
“Perfect Storm”
DECLINING
BANDWIDTH AND
TECHNOLOGY COSTS DECLINING
EFFECTIVENESS OF
• Increase in technology
functionality TV ADVERTISING
• Increase in broadband
•42.4% watch less
penetration television today than a year
• Proliferation of CE ago Source: Burst Media
devices • By 2010, traditional TV
advertising will be 1/3rd as
Web 2.0 effective as it was in 1990
Source: McKinsey & Co
•Online targeting
capabilities attractive to
advertisers
CONTENT OWNERS’ •Online advertising set to
ADOPTION OF DIGITAL grow 26.7% in 2007, 30%
PLATFORMS in 2008; total media ad
spending to grow only
• Increasingly adopting a 2.1% Source: Zenith Optimedia,
digital strategy by eMarketer
supporting different
platforms and release
windows reserved
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BNS Ltd, all rights

5. The Impact of Web 2.0
The internet is evolving into the most
•
ubiquitous video distribution platform
ever known
The market for professionally produced
•
and advertising supported broadband
video set to grow nearly 14 times to
$5.79 billion in 2011.
• User-generated video (UGV) scored
22.4 billion views in 2007, up 70%
over 2006, and is forecast to grow at
52% in 2008 to 34 billion views
• Lifestyles of young adults increasingly
drift to online activities
– Since 1998, the amount of time spent
with computers has drastically increased,
from 8% to 21%.
– The number of young adults going out to
the movies has decreased from 13% in
1998 to just 3% in 2008.
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BNS Ltd, all rights reserved

6. Web 2.0 Outlook for the Asia-Pacific
Asia Pacific set to
become the global
% of broadband subscribers
leader in online
currently paying
entertainment for online video
35%
23.3%
Revenue in US$ 2.87bn
Source: In-Stat
2007 2011
735.9m
2007 2011
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BNS Ltd, all rights reserved

7. Web 2.0 Drivers and
Inhibitors in the Asia-Pacific
Drivers
Inhibitors
• High broadband
• Piracy
penetration
• Other media
• Increasing purchasing
platforms
power
• Download
• Willingness to pay
speeds
premium for
entertainment
• Quality (visual
and content)
• Social networking
• User Interface
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BNS Ltd, all rights reserved

8. Social Media Trends
• Day of walled garden
networks are numbered
• Social media tools to
become universally
accessible
• Social media will be
service-independent
• Social networks will be
anywhere, everywhere
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BNS Ltd, all rights reserved

9. The Trailblazer: Mobile Social
Networking
• 3.3 billion cellphone subs vs 1.4 billion
Internet subs
• 2.3% of all mobile users use mobile for
social networking
• Penetration set to mushroom to at least
12.5% in five years. Source: informa
• Trend away from simple mobile web
browsing to Mobile Operator platforms,
such as Facebook to increase reliability
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BNS Ltd, all rights reserved

10. Why telcos should embrace Web 2.0
• People want it
But...
• Added revenue
branded social
source through
networks are less about
increased data
usage for uploading/
profitability and more
downloading
about creating loyal and
engaged customers
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BNS Ltd, all rights reserved

11. Example 1: Verizon
•Verizon recently moved its
branded social network to
Facebook and plans to shut
down its Verizon Community
•Move designed to “provide our
users with the most dynamic
and feature rich community
experience.”
Does this mean telcos can’t provide SNS?
Lesson learnt: don’t re-invent the wheel when a way
better wheel is available for a whole lot less
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BNS Ltd, all rights reserved

12. Example 2: PCCW’s snaap!
THE PROS
– View/share images and videos across
internet, mobile phone, fixed line (to • Offers convenience
be launched soon) and via a • Maximises own network
dedicated channel on its IPTV service. infrastructure and quadruple
play services
– Free for PCCW customers (100MB of
storage capacity) and 20 free photo
THE CONS
prints every month.
• Platform dependency will limit
– Non-customer paid subscription plan expansion and revenue
growth
(HK$38 per month) for 5GB storage
capacity. • Limited appeal - value added
service for less web savvy
– Partners with local photo store to customers
offer print services and print pick up
service at both the local photo outlet
and any Circle K convenient store.
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BNS Ltd, all rights reserved

13. How to Capture Opportunity 2.0
1. Own the application
Develop own unique interactive applications with
−
superior user experience
Control the whole value chain (carriage and
−
application)
2. Remove barriers
Master seamless convergence of platforms
−
Create intuitive one-click user interface to encourage
−
video uploads to increase data usage
Switch from subscription model to advertising
−
supported model wherever possible
3. Multiple Strategic Partnerships
– Partner with key UGC sites to distribute their
communities via the default start pages on mobile
phone browsers to create instant social networking
facilities rather than creating your own (see
Verizon…)
4. Make your IPTV service truly Web 2.0
– Exploit the interactive potential of IPTV technology –
it’s more than just a Pay TV platform
– Explore new trends and technologies that enable
beaming Web content to a TV (e.g. Verismo
Networks’ PoD)
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BNS Ltd, all rights reserved

14. Adopting “The Mullet”
“Business upfront – party at the back”
Jonah Peretti, co-founder, The Huffington Post
• Keep front end looking slick
and professional to greet users
and attract advertisers
• Move ‘argue and vent’ user-
generated content to secondary
pages
Users have control; operators increase
traffic and sell advertising
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BNS Ltd, all rights reserved

15. Thank You
www.bnsltd.com
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BNS Ltd, all rights reserved