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%

        ...
#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 c...
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 infrast...
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


               ...
TV ad
                                 for a show’s website
   Train ad       Magazine ad
for job portal   for cosmetics

...
Guess who Blyk benchmarked?



          Blyk?
Beyond mobile advertising
Mobile Commerce
Moba-Oku (DeNA)
 Mobile Auctions


              1. Take pic
              2. Select category
              3. Enter info
...
Over 6 billion USD in 2007
Japan’s m-commerce
            =
   2x mobile content
            =
10x mobile advertising
            =
  China’s e-comme...
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




                    ...
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
                                   ...
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...
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 ...
Pandora TV | Business Models
   Companies                                         Content Creators
  (advertisers)
  Provi...
Video + E-commerce
    Nico Nico Douga

    ”smiling videos”
   quot;Japan's YouTubequot;
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, IDE...
“Innovation Arbitrage”
• About us
   – +8* | Plus Eight Star is the leading cross-market and cross-cultural consultancy in...
Selected References
•   Adidas | E-commerce strategy for China, Japan & Korea

•   Bouygues Telecom | Cases studies of lea...
Social Work
• Mobile Monday
   – Founder of the Mobile Monday forum in Beijing since 2006 (3,000+
     members, 23 events,...
Contact Us

www.plus8star.com

benjamin@plus8star.com

benjamin0123                           +81 | Japan

               ...
Merci !
Asia as Part of our Digital Future
Asia as Part of our Digital Future
Asia as Part of our Digital Future
Asia as Part of our Digital Future
Asia as Part of our Digital Future
Asia as Part of our Digital Future
Asia as Part of our Digital Future
Asia as Part of our Digital Future
Asia as Part of our Digital Future
Asia as Part of our Digital Future
Asia as Part of our Digital Future
Asia as Part of our Digital Future
Asia as Part of our Digital Future
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Asia as Part of our Digital Future

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Presentation at "La Cantine" in Paris in December 2008. Covers mobile stuff and online video. Contains a mariachi.

Published in: Business, Technology

Transcript of "Asia as Part of our Digital Future"

  1. 1. Panorama d’Asie | L’Asie Ecrit une Part du Futur Benjamin Joffe, CEO | Plus Eight Star | December 2008
  2. 2. Benjamin Joffe ベンジャミン 벤자민 本杰明
  3. 3. 4 years 1 year 4 years
  4. 4. www.plus8star.com
  5. 5. Cross-Market Consulting Mobile & Internet Innovation China | Japan | South Korea
  6. 6. Agenda 1. Why look at Asia? 2. Future of Mobile? 3. Future of Web?
  7. 7. 1. Why look at Asia?
  8. 8. Internet Mobile 1.3 billion 3.3 billion Source: Morgan Stanley, 2007
  9. 9. General assumption #1 Everything from USA is great
  10. 10. General assumption #2 Everything from Asia is weird (and sometimes funny)
  11. 11. Who came first?
  12. 12. In Japan & Korea, broadband is among the fastest and cheapest on Earth (100Mbps for <30 USD)
  13. 13. 3G penetration in Japan and Korea is over 70%
  14. 14. 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)
  15. 15. #2 economy, #1 mobile society #1 mobile & Internet population #1 digital society
  16. 16. Japan stopped selling 2G in 2007
  17. 17. 2. Future of Mobile?
  18. 18. Mobile music
  19. 19. Japanese like ring tones Because they go to karaoke a lot Anonymous manager at a foreign media company in 2001
  20. 20. More music is sold “online” than “offline” in China and Korea
  21. 21. 90% of digital music sold in Japan is mobile
  22. 22. Digital music revenues in Japan Source: Infinity Venture Partners, 2008
  23. 23. Ringback tones were created in Korea in 2001 They reached 30% penetration in less than 2 years
  24. 24. Mobile TV
  25. 25. Koreans now spend more time on the Internet than watching TV
  26. 26. Mobile TV penetration in Japan and Korea is over 30%
  27. 27. 37 million mobile TV phones were sold by June 2008 in Japan Mobile TV started in May 2006
  28. 28. Over 70% of new handsets in Japan are mobile TV-enabled
  29. 29. Is it a success?
  30. 30. 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?
  31. 31. Mobile advertising
  32. 32. The mobile ad market in Japan was over 700 million USD in 2007
  33. 33. Have you heard of?
  34. 34. QR code in a train station with directions to a hotel QR code on a web page QR code printed on chocolate
  35. 35. TV ad for a show’s website Train ad Magazine ad for job portal for cosmetics Newspaper ad for health product
  36. 36. Guess who Blyk benchmarked? Blyk?
  37. 37. Beyond mobile advertising Mobile Commerce
  38. 38. Moba-Oku (DeNA) Mobile Auctions 1. Take pic 2. Select category 3. Enter info 4. Check 5. Done!
  39. 39. Over 6 billion USD in 2007
  40. 40. Japan’s m-commerce = 2x mobile content = 10x mobile advertising = China’s e-commerce
  41. 41. Mobile books
  42. 42. Several best-selling novels in Japan were written on mobile phones
  43. 43. One full bookshelf for mobile novels at Kinokuniya, Japan’s largest bookstores chain!
  44. 44. The two volumes of this book “Koi Sora” (“Loving sky – story of a love without gentleness”) sold…
  45. 45. “Koi Sora” sold over 2 million volumes (8 EUR / book) (You can read it for free on mobile)
  46. 46. Even on TV!
  47. 47. Digital books: Internet vs. Mobile Flat-fee data plans are introduced Source: Infinity Venture Partners, 2008
  48. 48. Mobile Social Networks
  49. 49. “Social Networking Is Not a Business” MIT Technology Review July/August 2008
  50. 50. Build communities with matching games Attract user with free games Chat Avatars BBS Journal Clubs Get new users with Word-of-mouth
  51. 51. Starting date 2004 1997 1999 2004 2006
  52. 52. Registered users 60 mln 500 mln 20 mln 14 mln 10 mln
  53. 53. Country’s Internet users 60 mln 500 mln 20 mln 14 mln n.a. 200 mln 220 mln 35 mln 90 mln 90 mln
  54. 54. Starting date (mobile) 2007 2000 2004 2006 2006
  55. 55. Mobile users (est.) 3 mln 50 mln 6 mln 10 mln 10 mln
  56. 56. Country’s mobile users 3 mln 50 mln 6 mln 10 mln 10 mln 255 mln 580 mln 45 mln 100 mln 100 mln
  57. 57. Revenues 2007 (USD) 150 mln 520 mln ~200 mln 100 mln 150 mln
  58. 58. Profit 2007 (USD) (50 mln) 225 mln ~100 mln 35 mln ~60 mln
  59. 59. Average Revenue From Users ~0% 87% 80% 5% 50%
  60. 60. Impression unit price PC Mobile April 2005 April 2006 April 2007 May 2008
  61. 61. 2. Future of Web?
  62. 62. Profitable Video Sharing Site
  63. 63. Founded: October, 2004 Revenue: 10 million EUR 80~90% from ads Breakeven in Q1 2008
  64. 64. 3 million subscribers 10 million UVs/month 2% CTR = 20x Naver! (leading portal) P2P saves 40% expenses
  65. 65. 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
  66. 66. 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
  67. 67. Video + E-commerce Nico Nico Douga ”smiling videos” quot;Japan's YouTubequot;
  68. 68. Video + e-Commerce = Social Commerce or TV Shopping 2.0?
  69. 69. Affiliate links related to mouse and pet product
  70. 70. Online/Offline mass media?
  71. 71. BJ = Broadcasting Jockey “Broadizen” (Broadcast + Netizen)
  72. 72. Encouraging Creation: Open Studio
  73. 73. Don’t forget to turn off your webcam…
  74. 74. About +8*
  75. 75. There are more ideas outside your country than inside Tom Kelley CEO, IDEO The 10 faces of Innovation
  76. 76. “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
  77. 77. 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
  78. 78. 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.)
  79. 79. 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
  80. 80. Merci !
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