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Presentation made for CEOs of European publishing companies to discover korea's digital life.
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Digital KoreaLeadership Expedition | European Media CEOs
Benjamin Joffe | Plus Eight Star Ltd | January 2008
0. Introduction
1. Industries under pressure
2. Innovation in Asia?
3. Digital Korea
4. Key players
5. To keep in mind
Agenda
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 "cyberspace" in 1982
Source: Tomi Ahonen, 2008
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
Transition lessons to Internet
Source: Tomi Ahonen upcoming book Mobile is the 7th Mass Media Channel, 2008
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.
The 7 Mass Media
Music score Print
Record, CD Recordings
OST Cinema
DJ Radio
MTV TV
iTunes Internet
RT, RBT… Mobile
FASHION!
Fashion shows
Mobile & Internet broadcast
Made in [far-distant countries]
And fashion publishing…
At one point my boss told me “your
experience is getting in the way”.
Former Head of CNN Asia
Today, as a blogger I can pursue topics
I care about and have more influence
than when I was with CNN.
Japanese like texting on mobile
Anonymous manager at a telecom company in 2000
Because they have small fingers
Asians like avatars
Anonymous manager at an Internet company in 2005
Because they read mangas and watch animes
Chinese like ring-back tones
Anonymous manager at a foreign media company in 2006
Because they go to KTV a lot
Make fun
Stereo type
Re-invent
Adopt
Self-evident
Oblivion
CC | +8*
The Not-Invented-Here
Circle of Oblivion
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
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
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
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
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
Population
South KoreaFrance
127 million49 million61 million
Japan
GDP (billion €) 3,4006201,490
GDP/Capita PPP 22,900 €11,500 €20,800 €
Broadband subs 28 million15 million15 million
China
1.31 billion
1,020
1,600 €
52 million
Penetration 21%30%24% 4%
Internet users 88 million35 million35 million 200 million
Sources: ARCEP, MIC, TCA, MII, CIA World Fact Book, Internet World Stats
Broadband country
The fastest broadband connections are in Korea and Japan.
OECD Report, July 2007
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
# CountryHouseholds
subscribing
Avg. speed
(mbps)
Price/month
for 1 mbps,
fastest tech.
(USD PPP)
Overall
Score
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
“Ubiquitous” Korea
Online services
Navigation systems
e-Commerce
e-Government
Intelligent home
Intelligent objects(tagged and connected)
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
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
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
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
Cyworld Syndrome
Transition of Internet icons
1996~1998 2002~20031999~2001 2004~2007
Yahoo Korea Daum CafeFreeChal
Damoim¹
Cyworld
Naver
Text Based
Simple searchOpen Community
Interactive space
School Network
Personal Resource Planner²
Multimedia Portal
Cyworld Syndrome
New model led by
Cyworld1st generation’s model
From Information-centric to Human-centric
Services
18 million users
“Easy to study” Blogging serviceInstant messaging
Internet portal Internet portal
Key figures
Market Cap7.3 billion EUR
Employees2,086
3Q2007170 million EUR
2007650 million EUR
Operating profit margin>40%
Market Cap 702 million EUR
Employees 1,723
3Q2007 108 million EUR
Operating profit margin 7.4%
Key figures
How about those concepts?
Meta-blogging
Content scrapping
Social Process Re-engineering
Trust-based information sharing
Personal Resource Planning (PRP)
About +8*
• [+8*] (Plus Eight Star Ltd.) is a consulting boutique
operating from Beijing, China
• To learn more about our name, please visit our site at
www.plus8star.com!
The company
• Provide strategic analysis to operators & content providers
to anticipate their markets
• Bring best practices in business models, service design
and marketing to Internet and mobile companies to
accelerate their business
• Other services range from M&A advisory, market entry,
partners identification to negotiation support
Our services
• „Innovation Arbitrage‟: bridging differences in market
maturity worldwide, using Asia as a source
•Strategic consulting on best practices in mobile and Internet
services in China, Japan and South Korea
Our focus
• Multicultural team covering the 3 markets
• Hands-on experience with local companies
• Large network of contacts
• Cross-market & cross-cultural awareness
Local expertise and global perspective
Co-Founder & Organizer | Mobile Monday Beijing
• Leading Information and networking event related to mobile
services in China, part of the Mobile Monday global network.
• 17 sessions since March 2006
• 2000+ members, 50+ presentations
• www.mobilemonday.cn
Managing Director | Benjamin Joffe
• 8 years in Japan, Korea and China
• Tel: +86 1371 880 3321
• Skype: benjamin0123
• Email: [email protected]
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 "cyberspace" in 1982
Mobile & Internet
Innovation Arbitrage
About +8*
© Copyrights 2008. All rights reserved. www.plus8star.com
Mobile & Internet
Innovation Arbitrage
“Inside Cyworld” Report | December 2006
© Copyrights 2008. All rights reserved. www.plus8star.com
• 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
Innovation Arbitrage
“Inside QQ” Report | January 2008
© Copyrights 2008. All rights reserved. www.plus8star.com
• 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