Presentation made for CEOs of European publishing companies to discover korea's digital life.

1. Digital Korea
Leadership Expedition | European Media CEOs
Benjamin Joffe | Plus Eight Star Ltd | January 2008

2. Agenda
0. Introduction
1. Industries under pressure
2. Innovation in Asia?
3. Digital Korea
4. Key players
5. To keep in mind

3. 0. Introduction

4. Benjamin JOFFE
밴자민 저프

5. 4 years
1 year
3 years

6. www.plus8star.com

7. Innovation Arbitrage
Mobile & Internet services
China | Japan | South Korea

8. The future has already arrived.
It is just not evenly distributed yet.
William Gibson
Science fiction author & father of the cyberpunk genre
Coined the term quot;cyberspacequot; in 1982

9. 1. Industries under pressure

10. The 7 Mass Media
1st Media Print
2nd Media Recordings
3rd Media Cinema
4th Media Radio
5th Media TV
6th Media Internet
7th Media Mobile
Source: Tomi Ahonen, 2008

11. Transition lessons to Internet
Effects will be:
• Incredibly rapid cannibalization of content,
formats, and audience time
• All business models migrating to internet,
with new models and formats appearing
It will probably also kill some content types.
For example:
• The daily newspaper
• The music CD
Very likely other content types will adjust,
such as TV debates using YouTube content.
Source: Tomi Ahonen upcoming book Mobile is the 7th Mass Media Channel, 2008

12. The 7 Mass Media
Music score Print
Record, CD Recordings
OST Cinema
DJ Radio
MTV TV
iTunes Internet
RT, RBT… Mobile

13. CONSULTING
News websites
Expert blogs
White papers
…

14. FASHION!
Fashion shows
Mobile & Internet broadcast
Made in [far-distant countries]
And fashion publishing…

15. PUBLISHING
Free websites (incl. NYT)
Ad pages
Classifieds

16. JOURNALISTS
Low wages
Tight deadlines
Editorial cut

17. At one point my boss told me “your
experience is getting in the way”.
Today, as a blogger I can pursue topics
I care about and have more influence
than when I was with CNN.
Former Head of CNN Asia

18. So what can we do?

19. Web 2.0?
Consulting 2.0
Fashion 2.0
Publishing 2.0
Journalism 2.0
Media 2.0

21. 2. Innovation in Asia?

22. General assumption #1
Everything from the US is great

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

25. Japanese like texting on mobile
Because they have small fingers
Anonymous manager at a telecom company in 2000

26. Asians like avatars
Because they read mangas and watch animes
Anonymous manager at an Internet company in 2005

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

28. Giving the wrong explanation
to the right question

29. Make fun
Stereo
Oblivion
type
The Not-Invented-Here
Circle of Oblivion
Self- Re-
evident invent
Adopt
CC | +8*

30. C2C?

31. Copy-to-China

32. Why look at Asia?

33. 1
Because some Asian markets
are strategically important

35. Official partner of Chinese Web2.0
fundraising since 2005

36. Alexa School of Investment
Quiz

37. Crowdsourcing Quiz
Which Asian Internet
services do you know?

38. 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

39. 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 Korea
7 Facebook YouTube
8 Wikipedia Livedoor
9 Hi5 Yahoo Wikipedia
10 Orkut

40. 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 Korea
7 Facebook YouTube
8 Wikipedia Livedoor
9 Hi5 Yahoo Wikipedia
10 Orkut

41. Global China Japan South Korea
1 Yahoo! Baidu Yahoo Japan Naver
2 Google QQ FC2 Yahoo
3 YouTube Sina Google 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

42. 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

44. 3. Digital Korea

45. Broadband country
France South Korea Japan China
Population 61 million 49 million 127 million 1.31 billion
GDP (billion €) 1,490 620 3,400 1,020
GDP/Capita PPP 20,800 € 11,500 € 22,900 € 1,600 €
Internet users 35 million 35 million 88 million 200 million
Broadband subs 15 million 15 million 28 million 52 million
Penetration 24% 30% 21% 4%
Sources: ARCEP, MIC, TCA, MII, CIA World Fact Book, Internet World Stats

46. The fastest broadband connections are in Korea and Japan.
Thanks to fiber optic cables the broadband
connections in Japan were up to 10 times faster
than the OECD average. Japan also had the
lowest relative monthly broadband charges/Mbps
OECD Report, July 2007

47. Price/month
Households Avg. speed for 1 mbps, Overall
# Country
subscribing (mbps) fastest tech. Score
(USD PPP)
1 Korea 0.90 45.6 0.45 15.73
2 Japan 0.52 61.0 0.27 14.99
3 Iceland 0.83 6.0 4.99 12.14
4 Finland 0.57 21.7 2.77 12.11
5 Netherlands 0.73 8.8 4.31 11.87
6 Sweden 0.49 18.2 0.63 11.54
7 France 0.49 17.6 1.64 11.41
12 US 0.51 4.8 3.33 10.47
Source: OECD, 2007

48. Consequence #1
Internet penetration and
speed

49. Consequence #2
Internet literacy

50. Consequence #3
Internet as a retail channel for
material, immaterial goods and
human intelligence

51. “Ubiquitous” Korea
Online services
Navigation systems
e-Commerce
e-Government
Intelligent home
Intelligent objects
(tagged and connected)

52. “Ubiquitous” Korea
Convergence & pervasive
technologies

53. Quoting „Digital Korea‟
(by Tomi Ahonen, August 2007)
1. Over 50% citizen use Internet banking
2. 63% use mobile phones for payment
3. 25% of all Visa cards are provided by mobile
phone
4. m-commerce transactions for non-telecom goods
exceeded $1bln in 2006
5. 73.6% filed taxes online as of January 2006
6. Electronic Signature Law and e-Commerce Law

54. And more!
Online game market is 57%
of the total game market in Korea
(5% in US, 2.5% in Japan, shifting to online)
Source: Game White Paper 2007

55. Two?
Online Newspaper Associations

56. Source: NYT, 2007.11

57. Are we so different?
China Takes unique steps to combat web addition (China)
USA Today | 2005.7
Internet addiction more serious than OCD (Israel)
United Press International | 2007.8
Computer addiction: What is it? (USA)
Psychiatric Times | 1998.8

58. “US full of Internet addicts”
Study from Stanford Faculty
Breitbart.com | 2007.10

59. Rich media demand

60. Ad spending shift

61. Technology trends for 2008
Korea Times | 2008.01.14

62. Global ranking search engines
(ComScore, 2007.10)
Rank Engine Reach PV
#1 Google 750 million 37
#2 Yahoo 750 million 8.6 bln
#3 Baidu 200 million 3.3 bln
#4 MSN 750 million 2.2 bln
#5 Naver 35 million 2.0 bln
#6 eBay 750 million 1.3 bln

63. Cyworld Syndrome
Transition of Internet icons
1996~1998 1999~2001 2002~2003 2004~2007
FreeChal Cyworld
Yahoo Korea Daum Cafe
Damoim¹ Naver
Text Based Interactive space Personal Resource Planner²
Open Community
Simple search School Network Multimedia Portal

64. Cyworld Syndrome
From Information-centric to Human-centric
New model led by
1st generation’s model Cyworld

65. “In a connected age,
sharing information is power”
Tomi Ahonen

70. 4. Key players

71. Services
18 million users Internet portal Internet portal
Instant messaging “Easy to study” Blogging service

72. Services

73. Key figures
Market Cap
7.3 billion EUR
Employees
2,086
3Q2007
170 million EUR
2007
650 million EUR
Operating profit margin
>40%

74. Search

75. Display ads

76. E-commerce

77. Online games

78. Services

79. Key figures
Market Cap 702 million EUR
Employees 1,723
3Q2007 108 million EUR
Operating profit margin 7.4%

80. Online and offline life
permeate each other

81. New hybrid form
Online + Offline = Life

82. Citizen media

83. Web 2.0?

84. How about those concepts?
Meta-blogging
Content scrapping
Social Process Re-engineering
Trust-based information sharing
Personal Resource Planning (PRP)

85. 5. To keep in mind

86. 1
Are you the target?

87. 2
Look for concepts
Adapt the rest

88. Thanks!
benjamin@plus8star.com
+86 1371 880 3321
Skype: benjamin0123

89. Appendix

90. About +8*
About +8*
The future has already arrived. It is just not evenly distributed yet.
William Gibson
Science fiction author & father of the cyberpunk genre
Coined the term quot;cyberspacequot; in 1982
The company Our focus
• [+8*] (Plus Eight Star Ltd.) is a consulting boutique • „Innovation Arbitrage‟: bridging differences in market
operating from Beijing, China maturity worldwide, using Asia as a source
• To learn more about our name, please visit our site at •Strategic consulting on best practices in mobile and Internet
www.plus8star.com! services in China, Japan and South Korea
Our services Local expertise and global perspective
• Provide strategic analysis to operators & content providers • Multicultural team covering the 3 markets
to anticipate their markets • Hands-on experience with local companies
• Bring best practices in business models, service design • Large network of contacts
and marketing to Internet and mobile companies to • Cross-market & cross-cultural awareness
accelerate their business
• Other services range from M&A advisory, market entry,
partners identification to negotiation support
Co-Founder & Organizer | Mobile Monday Beijing Managing Director | Benjamin Joffe
• Leading Information and networking event related to mobile • 8 years in Japan, Korea and China
services in China, part of the Mobile Monday global network. • Tel: +86 1371 880 3321
• 17 sessions since March 2006 • Skype: benjamin0123
• 2000+ members, 50+ presentations • Email: benjamin@plus8star.com
• www.mobilemonday.cn
Mobile & Internet © Copyrights 2008. All rights reserved. www.plus8star.com
Innovation Arbitrage

91. “Inside Cyworld” Report | December 2006
• Cyworld is also very relevant to you
– A broadband country since the late 90s, South Korea is today enjoying
super-high speed broadband and its society has evolved accordingly,
making Korea today the most „Internet literate‟ country on the planet and
a perfect laboratory for new broadband Internet services.
– Among Korea‟s success stories, the online community Cyworld has
been the shiniest star: over 30% of South Korea‟s population, and 90%
of Korean netizens in their 20s have a personal page on the service.
• What you will learn
– The critical elements that made Cyworld a success
– The money-making services and payment systems generating 200
million USD
– Original services that could help differentiate and plan some great
innovations!
• Content
– 190 slides with visual analysis & interviews | PDF License : 2,000 USD
Mobile & Internet © Copyrights 2008. All rights reserved. www.plus8star.com
Innovation Arbitrage

92. “Inside QQ” Report | January 2008
• First, Tencent is China‟s largest IM service (270 million accounts vs.
MSN‟s 250 million) and casual gaming portal.
• Second, Tencent‟s revenues will be in excess of 400 million USD in
2007, most of it coming from non-advertising services.
– What are those services?
– How can they make users pay for Internet services?
– What are the successful business models at work to achieve such
results?
• Third, for numerous Chinese users, QQ is synonymous with Internet
– What is the social impact of QQ?
– What kind of economy & ecosystem are being created?
• Last, Tencent is considered as China‟s greatest Internet success
– What are Tencent‟s latest strategic moves?
– What is their ambition for overseas markets?
• Content
– 185 slides with visual analysis & interviews | PDF License: 3,000 USD
Mobile & Internet © Copyrights 2008. All rights reserved. www.plus8star.com
Innovation Arbitrage