Innovation- MXit by Herman Heunis

PRESENTATION :PRESENTER :

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Africa Media LeadershipHerman Heunis05 October 2009

Copyright MXit Lifestyle (Pty) Ltd

MXit UP : Innovation, Youthful Fun & Connectedness

A Case Study from Southern Africa

Presented by Herman HeunisFounder & CEO

Africa Media Leadership Conference5 October 2009


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Topics

Background

User growth

Our eco-system

Business models

Projects

Social development in Africa

Challenges for social networking


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What is MXit?

Primarily a FREE mobile Instant Messenger

but much more….

social networking advertising entertainment dating classifieds education TV interaction counselling mobile banking micro transactions location based social development


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How does it work?

Not SMS based

Not an internet browser

Uses the phone’s internet capabilities

Software requires a phone capable of

Java

GPRS or 3G

Supports more than 1,940 different phones

Software is downloaded on the mobile phone from www.mxit.com/wap using the web browser

Software is FREE and no charge for messaging

http://www.mxit.com/wap


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What is MXit?


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MXit components

Standard contacts when user registers

Info Standard help Standard message to entire user base

Tradepost Sales portal for selling content

Joebanker Your wallet

Xchange Default classifieds

Gallery Personal space


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The company

Vision“Provide people with free messaging to connect with people, products, services, information and entertainment, relevant to their lifestyles....”

MissionTo secure a significant portion of the 4 billion mobile phone users in the world

PhilosophyWe do not compete, we create

Slogan“join the evolution” | “exit the ordinary”


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Total registered users worldwide


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Africa new user growth(per week)


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Success factors

Brand new form of communication

Very cheap

Entertainment is embedded

Socializing capabilities (dating, new friends)

Single place of connectedness

Part of a big community

The youthfulness of the brand


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Primary building blocks

Very cheap messaging

Presence information

Group and broadcast communication

Multi-media enabled

Location Based Services (LBS)

Extensive user information available

Viral effect always present

Internet access

Transactional & billing possible


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Role players in the eco-system

MXit

Mobile operators

MXit community

Phone manufacturers

Content providers

Advertisers


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Role playersChallenges

MXit (the company) Constant stream of new handsets Competition – constant innovation Mobile operators Constant education

Mobile operators SMS will eventually disappear IM seen as erosion of SMS revenues Under-utilized data networks Voice revenues on plateau

MXit community Wants to consolidate mobile applications Price sensitive – wants everything for free Lack of technology education


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Phone manufacturers Pressure to lower prices Mobile operators

Content providers Technology understanding mainly SMS/MMS Ever-changing user habits

Advertisers On verge of major paradigm shift Mobile advertising still in infancy Lack of technology understanding

Role playersChallenges


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Business model

Our main drivers

Acquire new users

Retain users

Generate revenue

How we generate revenue

Advertising

Content sales

Subscriptions


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AdvertisingSplash screens


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AdvertisingTradepost messages


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AdvertisingBrand portals


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AdvertisingBrand portals


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AdvertisingWallpapers


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Content salesSkinz


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Current “projects”

Xchange

MXit Music

Multi-player games

Education initiatives

Competitions (writing, etc.)

User polls – market research

Counselling (drugs & Childline)

Voting – Pop Idols, Big Brother (TV)


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MXit Xchange

MXit Xchange - positioned as a mobile classifieds/ trading platform

Launched 16 weeks ago on 10 June 2009

2,100 New postings each day

330,000 Subscribers, organic growth at 3000 per day

25,000 Inbox messages (enquiries) sent between users daily

Currently 10 full-time moderators

Mobile moderation tool allowing anywhere, anytime moderation from any phone


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MXit Xchange

MXit Xchange Moderation Tool


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MXit Xchange Posts

Graph shows visible post numbers after moderation

MXit Xchange currently charges 100 Moola (+-$0.12) per post

Last 15 days an average of 2100 new posts per day

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Posts


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Messages are not billed at this stage Users can send anonymous messages to one another to enquire about

items Total messages sent +676 000 in the past 33 days Last 15 days an average of 24 933 messages sent per day

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MXit Xchange - Stored inbox messages

Messages

MXit Xchange Messages


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MXit MusicOverview

Opportunity for unknown bands to deposit music on MXit website

Provide free portals to these bands

MXit users vote - songs migrate up charts based on votes

Once on certain level – start selling songs

Share revenue with bands


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MXit MusicComponents

MXit Music mobile

Voting, previews & download tracks via mobile phone

Consists of:

Playlist - Top 40 bands on MXit based on votes Auditions - All tracks uploaded available Warehouse - All formerly Top 40 tracks available Featured bands - Famous bands signed to MXit Music Hot or not - Semi-famous bands

MXit Music webBand registrations, band page & preview tracks via the webpage


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MXit Music Stats

MXit Music currently has 746 000 registered users

MXit Music monthly averages (past 3 months) New users: 22 000 p/m Votes: 63 000 p/m

Currently 526 bands activated on MXit Music


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Reaching our community Standard contacts

Info text messages

Tradepost text messages

Chatrooms – text messages

Portals

Splash screens, skinz and wallpapers – message in graphics

Multi-player games

Loyalty schemes - micro transactions (MiMoney & Moola)

Our forum

Message to user base

New ideas

CRM

Competitions (writing, etc)

User polls on MXit – market research

Voting – Pop Idols (TV)


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Social development in Africa

The PC - not the silver bullet for Africa

Mobile phone is “King” – why? Cheap Mobile Short learning curve Lots of potential

Focus areas AIDS awareness Health assistance (malaria, etc) Education

Text books on MXit Communication between schools and pupils

Agricultural Population involvement


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Social networkingChallenges

Privacy issues

Regulation and laws Law enforcement lacking

User education

Dangers of SNS Physical/virtual world discrepancies

Users think virtual world is the “Wild West”

Fierce competition

User changing habits


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Future interests

More variety of content

User and market research

CRM via MXit

Closer TV and radio interaction

Create sub-communities on MXit

Multi-player games

News and content gathering

More educational and social development


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Social networkingThe future

“It is the best of times. It is the worst of times. In the year 2014, people have access to a breadth and depth of information unimaginable in an earlier age. Everyone contributes in some way.

Everyone participates to create a living, breathing mediascape. However, the press as you know it has ceased to exist....

Twentieth-century news organizations are an afterthought, a lonely remnant of a not-too-distant past.”

(Robin Sloan ,Museum of Media History, Epic 2004)


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MXit Lifestyle

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Email: [email protected]

MXit LifestyleRiesling House, Brandwacht Office Park

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