Global Digital Goods Opportunities

1,249 views
1,063 views

Published on

Cơ hội của các doanh nghiệp trong lĩnh vực nội dung số

Published in: Business, Technology
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,249
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
71
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide
  • Hello, good afternoon.My name is Sam Kwong and I'm head of the PayPal DG Product in the APAC regionIt's my pleasure to be here in Hanoi to share with you about our view of the global digital goods opportunity
  • The way people consume content (music, videos, newspaper, magazine, games) is undergoing a huge transformation for the next 5 yearsThe transformation is being lead by the increase penetration of devices like smart phones, tablets, ebook readers. In addition, the increase availability of broadband internet and highspeed mobile networks make digital contents more accessible globallyOf course, some of the trends are being led by the United States (digitization of books, magazines, tv shows)APAC is leading the trend in gaming (especially mobile)
  • The European markets are smaller in terms of volume, but the trend is very similar.Latin America is still very much a nacent market at this point for digital goods.
  • Now, let's take a deeper look into the markets. Starting from the US.
  • - What jumps out to you is probably the 28% growth forecasted in the software segment. Can anyone take a guess of what's the make up? - Smartphone apps (iOS, Android, Windows, Blackberry) - Cloud computing offerings (Software as a service) - Another notable segment is publishing. Across devices and online media, publishing poses a high double digit growth
  • Taking a look at the EMEA region, - Again, publishing represents the greatest growth opportunity across devices and online media
  • Moving back home to APAC, - Gaming, look at that. We have the online market figured out. In fact, the social/online gaming trend originated out of APAC - Historically, software priracy is high. APAC gaming companies invented the freemium, subscription model. - Besides that, again, look at publishing. I think we're starting to see a global trend.
  • Finally, let's turn our focus into each segment
  • Global Digital Goods Opportunities

    1. 1. Global Digital Goods OpportunitiesSam Kwong, PayPal APAC Product Management December 12, 2011 PeaceSoft Conference
    2. 2. OUR AGENDA• Global Highlights• Look at the numbers• Segment deep dive Global Digital Goods Opportunities Confidential and Proprietary 2
    3. 3. Highlights • Books and magazines on reading devices will see significant growth rates, tripling from $5.6B to $18.7B in 2015. Led mainly by North America consumers. • Other media, mainly video from TV streaming subscriptions and movie downloads will almost double to 2015, also due to North America consumers. • Digital Mobile(devices and smartphones) is expected to double from $22.5B to $48.4B. Majority of the growth is in reading devices followed by mobile gaming. • APAC has expected to be the second biggest digital market at $53.3B in 2015. North America is forecast to be $82.9B and EMEA is $41.8B in 2015. • Online gaming in APAC represents 1/3 of total digital revenues at $10B in 2011 and doubles to $19.2B in 2015. • Mobile is significant in APAC too with games and music being the biggest. South Korea leads the way at $2.7B for 2015 in mobile gaming, followed by Japan ($2.1B) and China ($1.3B).Source: PWC Global Media and Entertainment Outlook 2011. Global Digital Goods Opportunities Confidential and Proprietary 3
    4. 4. Highlights • EMEA digital market growths are mostly led by Germany, UK, France, Italy and Netherlands. The growths and market size are smaller than the US but will also focus on significant growths in media (music and video), devices (books & magazines), followed by mobile. • The growth rates in Latin America for online media and games will not be much. • Digital mobile will see the greatest growth in Latin America which has 100% mobile penetration. Devices is not expected to grow much in this market. • Mexico and Brazil will lead the way mostly in mobile gaming. • In Emerging markets where income brackets are lower, Android smartphones will see exponential growths and this is where PayPal can offer a solution for microtransactions and digital media.Source: PWC Global Media and Entertainment Outlook 2011. Global Digital Goods Opportunities Confidential and Proprietary 4
    5. 5. OUR AGENDA• Global Highlights• Look at the numbers• Segment deep dive Global Digital Goods Opportunities Confidential and Proprietary 5
    6. 6. Digital Goods North America$90.0 Market Opportunity by Vertical US$ billions 2011-15 CAGR$80.0 $11.1 Mobile - Games, Music, 19.1%$70.0 Video, Software $9.0 $9.5 Devices - Books$60.0 & Magazines 26.5% $7.3 $30 $8.2 $20.8$50.0 $26 Media - $6.8 $5.8 10.2% Newspaper, $5.5 $4.6 $19.1 Music & Video $23$40.0 $3.5 $4.3 $20 $17.3 Software - SaaS 28.1%* $2.5 $18 $15.8 $63 and Downloads$30.0 $15 $14.1 $54 $26.3 $12.4 $46 $20.1 $42 $15.3 Games - Online 6.9%$20.0 $37 $12.3 $32 $9.8 $7.5 $3.0 $3.2 $2.3 $2.5 $2.7 $2.9$10.0 Games - 4.7% $10.3 $10.5 $10.7 $10.9 $11.4 $12.3 Console $- 2010 2011 2012 2013 2014 2015 TOTAL 15.9% $39.3B $45.9B $52.9B $60.4B $70.4B $82.9B Source: PWC Global Media and Entertainment Outlook 2011, Juniper Research 2011 and PayPal analysis. * Software forecasts are based on Renta Software analysis in 2010. Note: Numbers might not add up due to rounding. Global Digital Goods Opportunities Confidential and Proprietary 6
    7. 7. Digital Goods EMEA Market Opportunity by Vertical 2011-15US$$45.0 billions CAGR Mobile - Games,$40.0 $6.3 Music, Video, 15.4% Software$35.0 $5.8 Devices - Books & $5.2 Magazines 65.4%$30.0 $5.2 $3.7 $15 Media - $4.3 $2.3 $11 $9.3$25.0 Newspaper, 23.2% $1.3 $9 $7.7 Music & Video $3.5 $6.1 $0.7 $6$20.0 $2.7 $5.0 Software - SaaS $3.3 $5 $4 $0.4 $4.0 $3.1 $3.3 and Downloads 6.1% $3.4 $2.9 $30$15.0 $2.6 $5.7 $1.7 $5.2 $27 $4.7 $25 Games - Online $3.6 $4.1 $22$10.0 $3.3 $20 12.3% $18 $10.6 $11.1 $11.9 Games - Console $5.0 $9.5 $9.8 $10.2 5.1% $- 2010 2011 2012 2013 2014 2015 TOTAL 14.5% $20.9B $24.3B $27.9B $32.0B $36.7B $41.8B Source: PWC Global Media and Entertainment Outlook 2011, Juniper Research 2011 and PayPal analysis. Note: Numbers might not add up due to rounding. Global Digital Goods Opportunities Confidential and Proprietary 7
    8. 8. Digital Goods APAC$60.0 Market Opportunity by Vertical 2011-15US$ billions CAGR Mobile - Games,$50.0 Music, Video, 12.1% $11.4 Software $10.6 Devices - Books &$40.0 Magazines 32.2% $4.3 $9.6 $10 $3.4 $6.1 $8 Media - $8.4 $2.6 $5.1 Newspaper, Music 19.6%$30.0 $2.4 $7.2 $7 & Video $1.9 $4.1 $2.5 $6 $6.0 $3.6 $2.5 Software - SaaS $1.4 $4 $1.2 $3.0 $2.6 and Downloads -0.7%$20.0 $4 $2.7 $19.2 $38 $2.5 $1.8 $16.8 $34 $14.3 $12.0 $26 $30 Games - Online $10.1 17.4% $8.6 $23$10.0 $21 $9.1 $9.8 Games - Console $7.7 $7.7 $8.1 $8.6 6.2% $- 2010 2011 2012 2013 2014 2015 TOTAL 13.6% $28.0B $31.9B $36.7B $41.8B $47.5B $53.3B Source: PWC Global Media and Entertainment Outlook 2011, Juniper Research 2011 and PayPal analysis. Note: Numbers might not add up due to rounding. Global Digital Goods Opportunities Confidential and Proprietary 8
    9. 9. Digital Goods Latin America Market Opportunity by Vertical 2011-15 US$ billions$2.5 CAGR Mobile - Games, Music, Video, 12.3% Software$2.0 $0.9 Devices - Books & Magazines N/A $0.8$1.5 $0.7 $0.1 Media - $0.6 Newspaper, 20.9% $0.5 $0.0 $0.3 Music & Video $0.5 $0.0 $0.2 $0.0 $0.2$1.0 $- $0.2 $0.1 Software - SaaS $- $0.1 $0.1 $0.1 and Downloads 2.2% $0.1 $0.1 $0.2 $0.1 $0.2 $0.2 $0.1 $0.1 $0.1 $1.4 $0.1 $1.2 Games - Online $1.1 $1.1$0.5 $1.0 12.0% $0.9 $0.7 $0.7 $0.8 $0.6 $0.7 $0.7 Games - Console 4.2% $- 2010 2011 2012 2013 2014 2015 $1.4B $1.6B $1.7B $1.9B $2.1B $2.3B TOTAL 10.6% Source: PWC Global Media and Entertainment Outlook 2011, Juniper Research 2011 and PayPal analysis. Note: Numbers might not add up due to rounding. Global Digital Goods Opportunities Confidential and Proprietary 9
    10. 10. Global Mobile Market Opportunity Market Opportunity by Vertical 2011-15US$$50.0 billions CAGR$45.0 Devices - Books & Magazines 34.9%$40.0 $18.7$35.0 Mobile - Video $14.4 27.9%$30.0 $10.8 $3.4$25.0 $2.7 Mobile - Music** $7.9 $5.5 15.4% $2.0 $5.2$20.0 $5.6 $1.6 $5.0 $1.3 $4.0 $8.2$15.0 $4.0 $7.0 Mobile - Software $3.1 $6.0 19.5% $1.1 $1.9 $5.0$10.0 $4.0 $2.9 $11.7 $12.7 Mobile - Games $5.0 $8.5 $9.6 $10.7 10.6% $7.5 $- 2010 2011 2012 2013 2014 $41.0B* 2015 $48.4B* TOTAL 21.1% $17.6B* $22.5B* $28.0B* $34.4B* * Global Mobile includes both Mobile and Devices (e.g. electronic reading devices) ** Mobile Music is extrapolated based on Juniper Research numbers and PWC Online music growth. Source: PWC Global Media and Entertainment Outlook 2011, Juniper Research 2011 and PayPal analysis. Note: Numbers might not add up due to rounding. Global Digital Goods Opportunities Confidential and Proprietary 10
    11. 11. OUR AGENDA• Global Highlights• Look at the numbers• Segment deep dive Global Digital Goods Opportunities Confidential and Proprietary 11
    12. 12. Gaming• PC game will continue to deteriorate due to competitions from othersectors•Console market will be sustained by gamers into new titles•Online gaming market driven by increase in broadband penetration andcontinuing growth of micro transactions•Mobile gaming is exploding due to the rapid adoption of smartphones.Asia (Japan and Korea) leads in spending on mobile games•For the Facebook penetrated markets, Zynga has generally won thewar on social games•IP owners are starting to crack down on gold farming and 3rd partyresellers Global Digital Goods Opportunities Confidential and Proprietary 12
    13. 13. Publishing•Online and eReader channels are seriously eroding newspaper andmagazine print revenue in North America•Online channels are gradually putting up pay walls to offset the loses inprint revenue•Other markets are forecasted to follow a similar path as North America,but on a delayed timeline•eBooks market currently has a small base, but is the segmentforecasted to grow the fastest•Expanding eBook markets -> increase accessibility for consumer eBooks•Educational eBook is an emerging segment that warrants significantopportunities Global Digital Goods Opportunities Confidential and Proprietary 13
    14. 14. Music/Video•Physical distribution is declining rapidly as the industry shifts to digitaldelivery•Anti piracy efforts are starting to see results•Pay per track/download model is thriving•Subscription model is emerging, but minimal payout to artists in thismodel is starting to see backlash Global Digital Goods Opportunities Confidential and Proprietary 14
    15. 15. OUR AGENDA• Global Highlights• Look at the numbers• Segment deep dive Sam Kwong skwong@paypal.com Global Digital Goods Opportunities Confidential and Proprietary 15

    ×