Impact of user generated content on media Marketing and strategy Ajit.jaokar@futuretext.com Sep 2007

Ajit Jaokar - many hats Ajit Jaokar UK based - Hands on Publisher (futuretext) - Author (Mobile Web 2.0) - Chair: Oxford University's Next Gen Mobile Applications panel - PhD student UCL/UK Recent and forthcoming talks include Stanford University - MIT Sloan Web 2.0 expo - Ajaxworld The Scoble show - CNN money BBC Digital planet - Oxford University The O Reilly radar, European parliament Global top 20 wireless blogger According to fierce wireless www.opengardensblog.futuretext.com

50 million MySpace unique visitors - Comparable to - number of American households that tune to Superbowl 100 million YouTube videos every day - Comparable to Top 15 primetime shows in England (100 million viewers) or Top 4 American shows

Perspectives .. Power is moving away from the old elite (Rupert Murdoch, CEO NewsCorp.) Our industry is facing a profound challenge from home-made content (Tom Glocer, CEO Reuters) Source: Arthur D. Little

Power is moving away from the old elite (Rupert Murdoch, CEO NewsCorp.)

Our industry is facing a profound challenge from home-made content (Tom Glocer, CEO Reuters)

Traditional content vs.. UGC Traditional content Professional Edited Not free UGC Created by users From scratch (blogs) Modified (mashup) Collaboration (wikipedia)

Tectonic plates .. Media, Telecoms and Internet

Broadcast yo urselves .. But .. YouTube says Broadcast Yourselves ..

Broadcast yo urselves .. But .. New media is talking about old media ..

Love - hate ..

2OO6 : New media US 55 billlion (Including Mobile music, Internet, Online games) Traditional content US 455 billion However .. CAGR for new media for 2006 to 2010 is 23 percent Only 6 percent for traditional AND .. If advertisers had an additional million dollars 50 percent will spend on Internet search, 42 percent on other forms of internet advertising and only 19 percent mentioned TV !

Factors .. Mass adoption of broadband User generated content Open platforms Granular advertising and a shift to Internet advertising

Mass adoption of broadband

User generated content

Open platforms

Granular advertising and a shift to Internet advertising

Val ue chain .. Advertiser Content creator Content distributor Consumer Web aggregator Web aggregators is a different type of distributor. Everyone is trying to bypass the traditional distributors. Distributors are having to evolve Distributors - Cable companies ; Web aggregators - YouTube Advertiser to consumer - bud.tv, MVNO, IPTV Content creators - like to go to Web aggregators New distributors are coming in - freeview set topbox $70 and 10million units in 2006

A fork in the road for former partners? Content distributor Content creator

Strategies .. Overall strategy Content owners ( Maximise revenue, Protect content) Distributors - ex: Cable TV - Managed distribution/Walled gardens, ) Content owners: Open distribution user aggregation Community Leveraging assets Content distributors Long tail content - cheap (free!) UGC = lower viewership for traditional content = lower license fees at next round of negotiations=lower money to make content Community .. And customer intimacy!

Overall strategy

Content owners ( Maximise revenue, Protect content)

Distributors - ex: Cable TV - Managed distribution/Walled gardens, ) Content owners:

Open distribution

user aggregation

Community

Leveraging assets Content distributors

Long tail content - cheap (free!) UGC = lower viewership for traditional content = lower license fees at next round of negotiations=lower money to make content

Community .. And customer intimacy!

Strategies .. Contd .. Open .. Open - not to be confused with DRM Closed locked to a device or a network using a proprietary format - and customers experience is controlled Ex Cable Open Open format = mp3. Open can still be protected Others .. Reclaiming the editorial role Internet metrics - granularity, real time and actual stats Deliver experiences video games industry, virtualworlds etc

Open ..

Open - not to be confused with DRM

Closed locked to a device or a network using a proprietary format - and customers experience is controlled Ex Cable Open

Open format = mp3. Open can still be protected Others ..

Reclaiming the editorial role

Internet metrics - granularity, real time and actual stats

Deliver experiences video games industry, virtualworlds etc

Web 2.0 .. Web 2.0 ..

Overview .. What is Web 2.0 a) Web as a platform: pets.com TV (v.s. Google) A web of mainframes? Connecting the farmer in Africa to the rest of the world. b) Harnessing collective intelligence : Google page rank The platform is the Internet, On the Internet, the rules are different. Information sharing is actually better than information hoarding. With enough people sharing information – you build a database and the database becomes bigger and better with incremental users

Business models … Business models User enhanced databases - Amazon reviews On the Internet, you build a product that gets better as you harness the intelligence of the users. Hence, users must contribute. Amazon is a commodity business on one hand (you can’t get more commodity than selling books!) but has implemented many small Web 2.0 innovations (like reviews) so that they are far away from the commodity. Web 2.0 is all about building systems that get better the more people use them

Meta data .. If Customer is King - then Meta data is King Kong

South Korea - a whole country on a social network S.Korea Population - 48 million. About 80% own a cell phone. Cyworld members- 17 million 90% of 20s are accessing cyworld everyday. blog.sun.com/yoojin/ http://www.web2null.de/images/cyworld_full.jpg

Korea .. 6.25 million TDMB devices have been sold in around 20 months Highly Interactive with the Mobile TV program on your mobile handheld, click and buy the shirt of your favourite soap star while you watch Be driven around with your laptop in Seoul and connect to Mobile WIMAX at high speed

Korea .. 90% of all images taken by mobile phone end up on Social networking Heaven (Cyworld) More mobile Video on Cyworld than on You Tube. The No 1 Dream car in Korea was voted a Porsche Carrera and No2 was a Crazy car from the Online Game Kart Rider

Korea ..

Since 1995, CNN.com has provided news to the world From July 1 st , the enhanced CNN.com/international will improve the way users interact with news leverage CNN’s existing expertise incorporate latest web trends and developments 1995

Since 1995, CNN.com has provided news to the world

From July 1 st , the enhanced CNN.com/international

will improve the way users interact with news

leverage CNN’s existing expertise

incorporate latest web trends and developments

CNN.com/international homepage New features include: Switch to horizontal navigation Embedded video for appropriate news Regionally synchronized CNN Int’l TV schedule Localised weather and news Permanent, stronger presence of blogs, podcasts, and I-Report links

New features include:

Switch to horizontal navigation

Embedded video for appropriate news

Regionally synchronized CNN Int’l TV schedule

Localised weather and news

Permanent, stronger presence of blogs, podcasts, and I-Report links

Bandwidth changes everything! Vinton Cerf “In Japan you can already download an hour’s worth of video in 16 seconds… And we’re starting to see ways of mixing information together … imagine if you could pause a TV programme and use your mouse to click on different items on the screen and find out more about them.”

Acknowledgements .. All images from Google images or their respective copyright. Referenced various documents from IBM Global services CNN Web launch team Digital Korea, Korean IT promotion agencies

Mobile Web 2.0 www.futuretext.com www.opengardensblog.futuretext.com Ajit.jaokar@futuretext.com Thanks!!