1.Exploiting NewDigital MediaFrontiers July 2007 Stefan RustJuly 20071

2. All old-media dogs are going to have some more sleepless nightsBarry Diller, CEO IAC/InterActiveCorpMedia company CEO's without a CTO on their staff should prepare to be acquired or broken up - they are fighting the future rather than monetizing it.Chief Executive at a Fortune 500 company The Impact of Technology is going to be Fundamentally important in how companies are able to explore and exploit resourcesJorma Ollila, Chairman Shell & Nokia 2 3. 3 4. Stakeholders in a Digital WorldContent Owners PublishersCarriers / ISPs UsersTier 2 Tier 2 Tier 1DevelopersTier 1 BRANDS & MEDIA AGENCIESTechnology and Software 4 5. Changing Economics1933 2006 1953 2006 Production USD 670KUSD 207M Cost ofUSD 375K in USD 8K Costs(10M in today'sbuilding a today's moneymoney) 2 camera TV studio 5 6. Internet Usage 6 7. How do you stand out? Purchasing decisions are heavily influenced by recommendati ons from family and friends 7 8. Services Used Source: McKinsey 8 9. Volume & Scale Most of the world will experience the Internet through a mobile phone Mobile phones out ship PCs 10 to 1Innovating since 1982: Best product lineup ever 9 10. Mobile YouthSince the mid 90s mobile spending has replaced ~$500 billion of spending on other youth productsMobile Youth 06 10 11. Asian YouthThe average 15-24 year old Asian iswired to new media 3 hours instant messaging a day 1 hours on emails a day 1.4 hours participating in various online community activities accesses the internet 4.8 times a week (66% use it on a daily basis) 45% accessed a personal homepage 14% of young Asians participating in online gaming an avid consumer of all things digital 46% own a desktop computer or laptop 19% have their own TV game console 16% have their own digital still camera 56% own a mobile phone 34% own an MP3 player 48% viewing or contributing to a blog in the past 30 daysSynovate, 2006 11 12. Asian Mobile YouthNumber of youth without mobile phones (millions)600 500 South Asia & 2004 400 Greater China 2005 300 2006 200 2007 100 0e eaanficaa aia c op siicop icric diAs ci iwer A eruror urAfPa TaEAmAm.E h N tENst utia lEK,Ea esSo ti nN As ,HtraW Laid SEnaen M hiC C Mobile Youth, 2006 12 13. Data more relevant than Voice 13 14. Mobile EntertainmentGambling, Adult, Games, TV in Billion USD CAGR 28.7%77807060 47504030172010 0 20062009 2011Juniper Research, 2006 14 15. Asian Mobile EntertainmentPremium Content in 2011South Korea ThailandChina Taiwan 2% Australia 14% 10% 2%2% Singapore 1%Hong Kong Philippines1% 1% New Zealand India0%2%Malaysia 1%Indonesia2%USD 32.9BJapan62% Games, Music, Video, Ringtones, Icons, Adult, Gambling, Information, email, 15 Frost & Sullivan, 2006 16. Open Mobile Networks 16 17. Open Mobile Networks 17 18. Women on Mobile 18 19. Participation Age 19 20. Participation in the Mobile 20 21. Advertising Control 80% think it is important they can opt inand out of advertising and how muchadvertising they receiveRelevance 47% only want to hear about products andservices that are relevant to themQuality consumers are resistant to low quality orrepetitive advertising 21 22. Response RatesMobile Community Advertisingclick through rates now stand ataround 5% compared to 02.-0.5% for Internet basedAdvertising ABI Research 22 23. Local ContentSubscribers in most Asia-Pacificcountries have strongpreference for localcontent, which creates impetusfor the fast-growing mobilecontent market Janice Chong, Frost & Sullivan23 24. New Rules Consumer is in charge Speed is everything Partnerships are necessary Opportunities are vast and massive Innovation in technology, business models& implementation Open Networks and Environment Value & Trust24 25. 1 Book 25 26. THANK YOUstef@catalist.mobiwww.catalist.mobihttp://stefanrust.blogspot.com26