Content Is King? 1

3. Content Is King?

Introduction

• Content is NOT king.

We are interested in exploring the idea that contact (and not content) is king because person to person communication (i.e. contact) is a key driver for Mobile Web 2.0.

The history of ‘Content is King’

• Content is King 의 개념 : 신문 (package content) 영화 산업 , 레코드 산업

The economic factors driving the content industry

• Product to customer

ProductDistribution

ChannelCustomer

Content Is King? 2

Industry1994 revenues

(billions)

1997 revenues

(billions)

annual growth

rate

telephone $199.3 $256.1 8.7%

U.S. Postal Service 49.6 58.3 5.5

Advertising 151.7 187.5 7.3

Motion pictures 53.5 63.0 5.6

Broadcast industries 31.1 36.9 5.9

Consumer spending on “content”

113.9 133.5 5.4

Consumer spending on phone service

70.5 85.4 6.6

Sporting goods sales 53.5 64.1 6.2

Airlines 88.3 109.5 7.4

National defense 281.6 270.5 -1.1

• Selected sector of USA economy

Content Is King? 3

• The components of the global infotainment market ranked by size.

- TV distribution

- Newspapers

- Broadcast / cable networks

- Filmed Entertainment

- Internet Access

- Magazines

- Radio

- Video games

- Consumer books

- Recorded music

Content Is King? 4

• Inefficiencies in the media industry

Inefficiencies

regulation

paymentmechanisms

copyright

geography

technology

standards

Content Is King? 5

• The high investment in the industry is recouped from a number of sources such as:

- Brands, Copyrights, Patents- Additional revenues: distribution channels- Other source: sponsorship, advertising, government and product placement

High investment costs and an inefficient distribution mechanism support a small number of hits. Controls and barriers are put in place to recover this high investment cost.

The fourth seismic shiftMobile Web 2.0 and Digital convergence The third seismic shift

Web 2.0

The second seismic shiftBroadband and Broadcast

The first seismic shiftThe Internet (pre dot bomb)

Content Is King? 6

The first seismic shift – The Internet (pre dot bomb)• The new model was low cost and removed all the inefficiencies of the

existing distribution model (bookstores, product managers etc).• Amazon (www.amazon.com)• Advertising sponsored content model

The second seismic shift – Broadband and Broadcast• Broadband Internet access (broadband)

- Typical broadband rates are 256 kilobytes per second.- Modern consumer broadband implementations are up to 3 Mbit/s.- Broadcast has been a major component of the Infotainment / content mark

et.- Regulation is a major component of the broadcast / content industries.- DMB(Digital Multimedia Broadcasting), IPTV(Internet Protocol TV), DV

B-H(Digital video broadcasting – handheld)- Broadband connects cameras, moving image servers, producers and users

allowing the delivery and sharing of content at lower prices.

Content Is King? 7

• The potential of Broadband

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• Drivers and economics

- Increasing competition

- Digital transition plans of governments worldwide

- Adoption of broadband by advertisers

- Government regulations

- Government polices

- Broadband pricing

- Broadband availability, capacity and price

- Content producer

- Rights management regimes.

- Spectrum management

Content Is King? 9

The third seismic shift – Web 2.0• The long tail

- In most situations, 80% of the revenue comes from 20% of the products/services.

Content Is King? 10

• The community as the editor- The community can be an excellent editor.- Digg (www.digg.com) Digg is a technology news websites that combines socia

l bookmarking, blogging, RSS, and non-hierarchical editorial control.- YouTube (www.youtube.com) YouTube is a consumer media site for people to

watch and share original videos worldwide through the web.

The fourth seismic shift – Mobile Web 2.0• Mobile devices are crucial to Web 2.0 for two reasons:

- they are capable of capturing ideas at the point of inspiration.- they are likely to be ‘most often used’ to capture content.

• Winds of Change and a word of caution- Some trends affecting the industry’s future- A word of caution- Could there be a new business model for content?- Digital Rights Management: 디지털 콘텐츠의 불법 유통과 복제를

방지하고 적법한 사용자만이 콘텐츠를 사용케 하고 , 사용자에 대한 과금을 통해 저작권자의 권리 및 이익을 보호하는 시스템

Content Is King? 11

- DRM 기술은 디지털 콘텐츠 관리 체계를 형성하고 , 표준화하기 위한 관리 (Management) 기술 , 관리 기술에서 정의된 사항을 실행할 수 있도록 하는 통제 (Enforcement) 기술 , 디지털 콘텐츠의 유통 과정을 감시하는 추적 (Forensics) 기술로 구성된다 .

- The winds of change