Panorama d’Asie | L’Asie Ecrit une Part du Futur
Benjamin Joffe, CEO | Plus Eight Star | December 2008

Benjamin Joffe
ベンジャミン
벤자민
本杰明

4 years
1 year
4 years

www.plus8star.com

Cross-Market Consulting
Mobile & Internet Innovation
China | Japan | South Korea

Agenda
1. Why look at Asia?
2. Future of Mobile?
3. Future of Web?

1. Why look at Asia?

Internet Mobile
1.3 billion 3.3 billion
Source: Morgan Stanley, 2007

General assumption #1
Everything from USA is great

General assumption #2
Everything from Asia is weird
(and sometimes funny)

Who came first?

In Japan & Korea, broadband is
among the fastest and cheapest
on Earth (100Mbps for <30 USD)

3G penetration in Japan and
Korea is over 70%

100%
80%
USA
60%
3G users
40%
Chin Japa
20% a n
0%
0% 20% 40% 60% 80%
% of Internet connections measured above 5Mbps
(Source: Akamai, 1H2008)

#2 economy, #1 mobile society
#1 mobile & Internet population
#1 digital society

Japan stopped selling 2G
in 2007

2. Future of Mobile?

Mobile music

Japanese like ring tones
Because they go to karaoke a lot
Anonymous manager at a foreign media company in 2001

More music is sold “online” than
“offline” in China and Korea

90% of digital music
sold in Japan is mobile

Digital music revenues in Japan
Source: Infinity Venture Partners, 2008

Ringback tones were created in
Korea in 2001
They reached 30% penetration in
less than 2 years

Mobile TV

Koreans now spend more time on
the Internet than watching TV

Mobile TV penetration in Japan
and Korea is over 30%

37 million mobile TV phones were
sold by June 2008 in Japan
Mobile TV started in May 2006

Over 70% of new handsets in Japan
are mobile TV-enabled

Is it a success?

Remaining Questions
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?

Mobile advertising

The mobile ad market in Japan was
over 700 million USD in 2007

Have you heard of?

QR code in a train station
with directions to a hotel
QR code on a web page
QR code printed on chocolate

TV ad
for a show’s website
Train ad Magazine ad
for job portal for cosmetics
Newspaper ad
for health product

Guess who Blyk benchmarked?
Blyk?

Beyond mobile advertising
Mobile Commerce

Moba-Oku (DeNA)
Mobile Auctions
1. Take pic
2. Select category
3. Enter info
4. Check
5. Done!

Over 6 billion USD in 2007

Japan’s m-commerce
=
2x mobile content
=
10x mobile advertising
=
China’s e-commerce

Mobile books

Several best-selling novels in Japan
were written on mobile phones

One full bookshelf
for mobile novels
at Kinokuniya,
Japan’s largest
bookstores chain!

The two volumes of
this book “Koi Sora”
(“Loving sky – story
of a love without
gentleness”) sold…

“Koi Sora” sold over 2 million
volumes (8 EUR / book)
(You can read it for free on mobile)

Even on TV!

Digital books: Internet vs. Mobile
Flat-fee data plans
are introduced
Source: Infinity Venture Partners, 2008

Mobile Social Networks

“Social Networking
Is Not a Business”
MIT Technology Review
July/August 2008

Build communities
with matching games
Attract user
with free games
Chat Avatars
BBS Journal Clubs
Get new users with
Word-of-mouth

Starting date
2004 1997 1999 2004 2006

Registered users
60 mln 500 mln 20 mln 14 mln 10 mln

Country’s Internet users
60 mln 500 mln 20 mln 14 mln n.a.
200 mln 220 mln 35 mln 90 mln 90 mln

Starting date (mobile)
2007 2000 2004 2006 2006

Mobile users (est.)
3 mln 50 mln 6 mln 10 mln 10 mln

Country’s mobile users
3 mln 50 mln 6 mln 10 mln 10 mln
255 mln 580 mln 45 mln 100 mln 100 mln

Revenues 2007 (USD)
150 mln 520 mln ~200 mln 100 mln 150 mln

Profit 2007 (USD)
(50 mln) 225 mln ~100 mln 35 mln ~60 mln

Average Revenue From Users
~0% 87% 80% 5% 50%

Impression unit price
PC
Mobile
April 2005 April 2006 April 2007 May 2008

2. Future of Web?

Profitable Video Sharing Site

Founded: October, 2004
Revenue: 10 million EUR
80~90% from ads
Breakeven in Q1 2008

3 million subscribers
10 million UVs/month
2% CTR = 20x Naver! (leading portal)
P2P saves 40% expenses

Pandora TV vs. YouTube Korea
(Page Views)
Number of Page Views for Pandora TV and YouTube Korea
500
Page Views (million)
400
300 Pandora TV
200
Over 3 times!
100
YouTube
Korea
Aug.07 Jul.08
Sources: Daum directory

Pandora TV | Business Models
Companies Content Creators
(advertisers)
Provide advertising
contents with payment
Creating/posting and
>80% of total Sharing UCC contents
revenue
‘CUPI’ convertible
• Share ad revenue with virtual currency
content creators & sharers
• Charge users premium
content/option

Video + E-commerce
Nico Nico Douga
”smiling videos”
\"Japan's YouTube\"

Video + e-Commerce
=
Social Commerce or TV Shopping 2.0?

Affiliate links
related to
mouse and pet
product

Online/Offline mass media?

BJ = Broadcasting Jockey
“Broadizen”
(Broadcast + Netizen)

Encouraging Creation: Open Studio

Don’t forget to turn off your webcam…

About +8*

There are more ideas
outside your country
than inside
Tom Kelley
CEO, IDEO
The 10 faces of Innovation

“Innovation Arbitrage”
• About us
– +8* | Plus Eight Star is the leading cross-market and cross-cultural consultancy in Asia.
– We provide local expertise & global perspective on mobile and Internet innovation from
China, Japan and South Korea to add value to and accelerate the development of our
clients’ businesses.
• Our services
– Analysis of proven best practices and business models from Asia
– Other services: executive study trips, market entry strategy, M&A advisory, partners
identification, negotiation support.
• Founder & CEO: Benjamin Joffe
– 9 years experience with mobile & Internet in Asia
– Selected among “China’s Top 100 mobile industry influencers” in 2007
– Regular speaker at events on mobile and Internet in Asia
– Fluent in English, Japanese, French with working knowledge of Mandarin, Korean and
Spanish

Selected References
• 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
convergence strategies
• Hemisphere | Analysis of mobile marketing best practices in Japan and
South Korea (Hemisphere is a leading digital advertising agency),
analysis of leading social platforms (SNS, virtual worlds, online games).
• Microsoft | Analysis of Japan’s key players and market catalysts for
mobile commerce market positioning in China
• DeNA | Case studies of the best practices of leading social networks in
China and South Korea (DeNA operates Mobile Game Town, Japan’s
leading mobile SNS service)
• China Mobile | Benchmark of Korean leading online communities
• Sands Capital Management | Evaluation of China’s investment
opportunities in social networks in China

Social Work
• Mobile Monday
– Founder of the Mobile Monday forum in Beijing since 2006 (3,000+
members, 23 events, over 80 presentations).
• Media
– Monthly column on Asian innovation for Asian Business Leaders (one of
the leading Chinese business magazines), numerous interviews in
international media.
• Events
– Regular keynote speaker and moderator at Internet, Telecom, Media and
Investment events
e.g. ITU Asia, Asia Venture Capital Forum, China Mobility International Summit,
O’Reilly’s Graphing Social Patterns, Red Herring Asia, Media 08 Conference,
Wireless Developer Forum, Open Web Asia, XMediaLab, Mobile Monday Global
Summit, etc.)

Contact Us
www.plus8star.com
benjamin@plus8star.com
benjamin0123 +81 | Japan
+82 | Korea
http://twitter.com/plus8star +86 | China
Telecom & Internet
www.linkedin.com/in/benjaminjoffe + Added Value
* High quality
www.slideshare.net/plus8star

Merci !