Asia as Part of our Digital Future

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” 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, 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 !

http://www.plus8star.com	15
http://www.felgner.ch	12
http://www.slideshare.net	3
http://www.plaxo.com	1
http://about.felgner.ch	1

Asia as Part of our Digital Future

by Benjamin Joffe on Dec 15, 2008

Accessibility

Categories

Tags

Upload Details

Usage Rights

5 Embeds 32

Statistics

Asia as Part of our Digital Future — Presentation Transcript