Media '08 - Presentation by Benjamin Joffe

Slide 1: New business models in online communities Benjamin Joffe Managing Director | Plus Eight Star Ltd Media’08 | Sydney | March 2008

Slide 2: Innovation in Asia?

Slide 3: General assumption #1 Everything from USA is great

Slide 4: General assumption #2 Everything from Asia is weird (and sometimes funny)

Slide 6: Japanese like texting on mobile Because they have small fingers Anonymous manager at a telecom company in 2000

Slide 7: Asians like avatars Because they read mangas and watch animes Anonymous manager at an Internet company in 2005

Slide 8: Chinese like ring-back tones Because they go to KTV a lot Anonymous manager at a foreign media company in 2006

Slide 9: Giving the wrong explanation to the right question

Slide 10: Not-invented-here spiral of oblivion

Slide 11: Make fun Oblivion Stereo type Self- Re-invent evident Adopt

Slide 12: Why look at Asia?

Slide 13: 1 Because some Asian markets are strategically important

Slide 14: #2 economy #1 population #1 digital society

Slide 15: Broadband connections in Japan and Korea are up to 10 times faster than the OECD average. Japan also had the lowest relative monthly broadband charges/Mbps OECD Report, July 2007

Slide 16: Consequence #1 Internet penetration and speed

Slide 17: Consequence #2 Internet literacy

Slide 18: 2 Because some great ideas have already been proven there

Slide 24: How about those concepts? Meta-blogging Content scrapping Trust-based information sharing Personal Resource Planning (PRP)

Slide 25: Alexa School of Investment Quiz

Slide 26: Global China Japan South Korea 1 Yahoo! 2 Google 3 YouTube 4 MSN 5 Windows Live 6 MySpace 7 Facebook 8 Wikipedia 9 Hi5 10 Orkut

Slide 27: Global China Japan South Korea 1 Yahoo! Yahoo Japan 2 Google Yahoo 3 YouTube Google Japan 4 MSN Google YouTube 5 Windows Live 6 MySpace Google 7 Facebook YouTube 8 Wikipedia 9 Hi5 Yahoo Wikipedia 10 Orkut

Slide 28: Global China Japan South Korea 1 Yahoo! Baidu Yahoo Japan Naver 2 Google QQ FC2 Yahoo 3 YouTube Sina Google Japan Daum 4 MSN Google YouTube Cyworld 5 Windows Live Netease Mixi Nate 6 MySpace Taobao Rakuten Google 7 Facebook Sohu Nicovideo YouTube 8 Wikipedia Tom Livedoor Empas 9 Hi5 Yahoo Wikipedia Gmarket 10 Orkut 56.com Goo Auction

Slide 29: Global China Japan South Korea 1 Yahoo! Baidu Yahoo Japan Naver 2 Google QQ FC2 Yahoo 3 YouTube Sina Google Japan Daum 4 MSN Google YouTube Cyworld 5 Windows Live Netease Mixi Nate 6 MySpace Taobao Rakuten Google 7 Facebook Sohu Nicovideo YouTube 8 Wikipedia Tom Livedoor Empas 9 Hi5 Yahoo Wikipedia Gmarket 10 Orkut 56.com Goo Auction

Slide 30: SNS are a new media

Slide 32: Genetics of SNS

Slide 36: Parameters Visitors Personal URL These figures reflect / Add to my favorite Today / Total user’s various statistics Updated contents - Content copies Emotional (scrapping) status - Registered number as a My photo favorite Music Player Bought by user Comment Name & [Main menu] Gender Configured by user [Neighbors] View this person’s neighbors Skin [Mini-room] Comment by Purchase new skins for a Cyber residence of user neighbors coordinated background, icons, etc.

Slide 38: Q Bi: cyber $ Secretary E-mail Multi-person chat Online status Game/Music QQ buddy list SMS/MMS Weather File transfer Online disk Voice/Video Friend name: Wireless service Cathy Mini portal Ad Music Chatting with Cathy Game Cathy’s QQ Show Interaction Take a group photo with Panel admin Cathy’s QQ Show Making friends Cathy’s QQ Zone E-magazine Background Screen shoot C2C e-commerce Send pic Stock info Active emotion Address list Emotion Group list Font Last contacts My QQ Show Input area SMS Main menu Tencent browser History IPTV Chat rooms Search QQ Pet

Slide 40: Metrics Pageviews Number of users Revenues

Slide 41: Social Network DNA

Slide 42: Starting date 2004 1999 2004 1997

Slide 43: Active accounts 60 mln 20 mln 14 mln 270 mln

Slide 44: Reach (Internet users) 200 mln? 35 mln 90 mln 200 mln

Slide 45: Revenues 2007 (USD) 150 mln 200 mln 100 mln 400 mln

Slide 46: Profit 2007 (USD) (50 mln) 100 mln 35 mln 180 mln

Slide 47: Valuation (USD) ? MSSE TSE HKSE 15 bln? n.a. 1.8 bln 11 bln

Slide 48: Main business models Ads (Ads) Ads (Ads) (Digital goods) Digital goods Digital goods Games Mobile VAS Mobile VAS Jobs

Slide 49: Ads or Digital goods? 1. Who is the client? 2. Not incompatible 3. There is more!

Slide 50: Other business models Targeted Ads Storage Monthly fee Personalization Alerts…

Slide 51: Key features Invitation system Closed/Open/Semi-closed Sticky features Payment solutions Mobile Online/Offline connection

Slide 52: Social design Focus Values Atmosphere Demographics

Slide 53: Psychological design Identity / Identities Trust

Slide 54: The missing blocks

Slide 55: 1 Payment infrastructure

Slide 56: 2 Trust system

Slide 57: 3 New value chains

Slide 58: To remember

Slide 59: 1 Are you the target?

Slide 60: 2 Resist the temptation to stereotype

Slide 61: 3 Look for concepts Adapt the rest

Slide 62: Thanks! benjamin@plus8star.com Published research Inside Cyworld Inside QQ Free sample | www.plus8star.com