social media - the future of media

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Social Media: The Future of Media Insights From Asia’s Most Advanced Markets Benjamin Joffe, CEO | +8* | www.plus8star.com AVCJ Forum| Hong Kong | November 2008 Internet: 1.3 billion Mobile: 3.3 billion

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Presentation for the Asia Venture Capital Forum in Hong Kong on November 2008 with several examples of Asia\'s successes on the mobile and web scenes

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Page 1: Social Media - The Future of Media

Social Media: The Future of Media

Insights From Asia’s Most Advanced Markets

Benjamin Joffe, CEO | +8* | www.plus8star.com

AVCJ Forum| Hong Kong | November 2008

Internet: 1.3 billion

Mobile: 3.3 billion

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Innovation ArbitrageTelecom & Internet

China | Japan | South Korea

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Overview

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Internet1.3 billion

Mobile3.3 billion

Source: Morgan Stanley, 2007

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3G

use

rs

% of Internet connections measured above 5Mbps(Source: Akamai, 1Q08)

USA

Japan

China

0%

20%

40%

60%

80%

100%

0% 20% 40% 60% 80%

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#2 economy, #1 mobile society

#1 mobile & Internet population

#1 digital society

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General assumption #1

Everything from USA is great

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General assumption #2

Everything from Asia is weird(and sometimes funny)

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Quick Facts

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Koreans (already) spend more timeon the Internet than watching TV

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In China & Korea, Music (already)sells more “online” than “offline”

In Japan, 90% is sold via mobile(and is a billion USD business)

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UGC Media Site Breaking Even?

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Profitable Video Sharing Site?

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Online/Offline mass media?

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BJ = Broadcasting Jockey“Broadizen”

(Broadcast + Netizen)

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Don’t forget to turn off your webcam…

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Mobile TV penetration in

Japan and Korea is over 30%

(already)

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Japan’s m-commerce=

2x mobile content=

10x mobile advertising=

China’s e-commerce

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One full bookshelf

for mobile novels

at Kinokuniya,

Japan’s largest

bookstore chain!

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Best-seller “Koi Zora” sold over2 million volumes (10 USD / book)

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Social Networks

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Quick survey

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Investment?

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“Social NetworkingIs Not a Business”

MIT Technology ReviewJuly/August 2008

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SNS on the stock market?

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Market-listed SNS

2006.1276 mln EUR

100 mln USD

2004.06100 bln HKD13 bln USD

2006.0987 bln JPY

890 mln USD

2005.02104 bln JPY1.1 bln EUR

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Market-listed SNS

100 mln USD 13 bln USD 890 mln USD 1.1 bln USD

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Internet users

200 mln 220 mln 35 mln 90 mln 90 mln

60 mln 500 mln 20 mln 14 mln n.a.

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Mobile users

255 mln 580 mln 45 mln 100 mln 100 mln

3 mln 50 mln 6 mln 10 mln 10 mln

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Revenues 2007 (USD)

150 mln 520 mln ~200 mln 100 mln 150 mln

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Profit 2007 (USD)

(50 mln) 225 mln ~100 mln 35 mln ~60 mln

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Main business models

Ads Ads

Digital goods Digital goods

Paid Games

Mobile VAS

Jobs

Ads Ads

Mobile VAS

Digital goods

Ads

Affiliates

Digital goods

Brand pages Brand pagesBrand pages

Music

Brand pages

Freemium

Mobile VAS

Brand pages

Source: +8* | www.plus8star.com

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Attract user

with free games

Build communities

with matching games

Chat

BBS Journal Clubs

Avatars

Get new users with

Word-of-mouth

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Average Revenue From Users

80% 5%87% 50%~0%

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Estimates for this year

• QQ makes 1 billion USD with its IM-based SNS

– 500 million USD profit?

• Mobile Game Town sales top 200 million USD

– 100 million USD profit?

• And…

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About +8*

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There are more ideas outside your country

than inside

Tom KelleyCEO, IDEO

The 10 faces of Innovation

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“Innovation Arbitrage”

• About us– +8* | Plus Eight Star is the leading Telecom & Internet cross-market and cross-cultural

consultancy in Asia.

– We provide local expertise & global perspective on mobile and Internet innovation from China, Japan and South Korea to add value to and accelerate the development of our clients’ businesses.

• Our services– Analysis of proven best practices and business models from Asia

– Other services: executive study trips, market entry strategy, M&A advisory, partners identification, negotiation support.

• Founder & CEO: Benjamin Joffe– 9 years experience with mobile & Internet in Asia

– Selected among “China’s Top 100 mobile industry influencers” in 2007

– Regular speaker at events on mobile and Internet in Asia

– Fluent in English, Japanese, French with working knowledge of Mandarin, Korean and Spanish

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Selected References• Adidas | E-commerce strategy for China, Japan & Korea

• Bouygues Telecom | Cases studies of leading Asian Web 2.0 services and virtual worlds

• Deutsche Telekom / T-Online | Benchmark of Korean mobile & Internet convergence strategies

• Hemisphere | Analysis of mobile marketing best practices in Japan and South Korea (Hemisphere is a leading digital advertising agency), analysis of leading social platforms (SNS, virtual worlds, online games).

• Microsoft | Analysis of Japan’s key players and market catalysts for mobile commerce market positioning in China

• DeNA | Case studies of the best practices of leading social networks in China and South Korea (DeNA operates Mobile Game Town, Japan’s leading mobile SNS service)

• China Mobile | Benchmark of Korean leading online communities

• Sands Capital Management | Evaluation of China’s investment opportunities in social networks in China

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Social Work

• Mobile Monday– Founder of the Mobile Monday forum in Beijing since 2006 (3,000+

members, 23 events, over 80 presentations).

• Media– Monthly column on Asian innovation for Asian Business Leaders (one of

the leading Chinese business magazines), numerous interviews in international media.

• Events– Regular keynote speaker and moderator at Internet, Telecom, Media and

Investment events

e.g. ITU Asia, Asia Venture Capital Forum, Ad-Tech, China Mobility International Summit, O’Reilly’s Graphing Social Patterns, Red Herring Asia, Media 08 Conference, Wireless Developer Forum, Open Web Asia, XMediaLab, Mobile Monday Global Summit, etc.)

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www.plus8star.com

[email protected]

benjamin0123

http://twitter.com/plus8star

www.linkedin.com/in/benjaminjoffe

www.slideshare.net/plus8star

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+82 | Korea

+86 | China

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