uSchoolNet Facebook for the K-9 Market!!!

By: Gary ChengEmail: gary@uschoolnet.com

Topics

• The Transformation of Internet(Web 1.0 Web 2.0 Web 3.0)

• The Value of Social Network

• Market Opportunity

• uSchoolnet’s Vision

• Magic Diamond

• Exponential Growth

• Connecting to Schools

• Strategy

• Competitors (TW and US samples)

• Expansion

The Transformation of Internet (Web 1.0 Web 2.0 Web 3.0)

• Web 1.0 1994-2004 (static pages, Front Page/Dreamweaver, Namo)

i.e. Geocities – 3rd most trafficked website, purchased by Yahoo for $3.57 billion

• Web 2.0 2004-2010 (social network)

i.e. Friendster, My space, Facebook, Google+

• Web 3.0 2011-? (convergence of virtual and physical)

i.e Foursquare, augment reality

“If you’ve got something to sell, email steveb@microsoft.com,” Mr. Ballmer told Web 2.0 attendees.

The world’s largest software maker expects to vacuum up about 20 companies each year for the next five years, … Microsoft will spend between $50 million and $1 billion per company, he said.

“Kids are starting to go to the Internet first, so it is important for us to operate in that space,” Robert A. Iger, Disney’s chief executive, said in an interview.

Media companies like Disney and Viacom, the owner of Nickelodeon, are being forced to rethink how they reach young people, who often do not see television as the door to the world of movies, toys and video games.

The Value of Social Network

Market Opportunity

• K- 9 market is an untapped market – while everyone is fighting for the 16-30 year

old market (Facebook vs. My Space vs. Friendster, Yahoo vs. Google vs.

Microsoft), we are becoming the #1 destination site for the K-9 market.

• K-9 market not anyone’s main focus (Geocities - purchased by Yahoo for $3.57

billion in 1999 closed in 2009)

• Currently every educational company is trying to sell SYSTEMS to the schools.

However the value is in the NETWORK.

(i.e. Blackboard is worth 1.4 B while Facebook is worth 70B)

uSchoolnet’s Vision• To be the #1 social network (member identifier) for the 6-15 age group.

• To become the largest kids new media in the world.

• The strategy is to connect all the schools so that anything that goes in and out of schools will need

to go through our uSchoolnet system.

uSchoolNet Schools

Publishers

Vendors

Advertisers

Government

Parents

uSchoolnet is the gateway btw schools and the outside world

uSchoonet’s Vision• Taiwan

• 2600+ elementary schools

• 2 million elementary students

• China• 456,000+ elementary schools

• 121 million elementary students

• United States• 98,210 K-9 schools

• 41 million K-9 students

• Japan/Global

NOTE:

• Every year 1/6 will graduate and still be our members

• 1/6 new members will be added via 1st graders

• Can easily expand downward to Kindergarten or upwards to Junior High

Magic Diamond

Parents

Shared Database

Teachers Students

Competitors think we are aclass website company.However what we are managingis the network (uBlog)

Exponential Growth

Teacher

Students

Parents

Class

School

Exponential Growth

0 6 15 30 45

Age

Kids btw 6-15. elementary and junior high

Teachers and parents of these kids

Connecting to Schools

• Class Website Cloud service

• Advertising

• Subscriptions

• Transactions

Connecting to Schools

• Class Website Cloud Service

• Charge by usage and/or storage size

• Usage: online quiz module

• Storage: must pay to archive past class websites

• Advertising

• Better than any other media (targeted and interactivity – better than Focus Media)

• Mass exposure to targeted audience (age and location)

• Example – target 9 years old in Taipei city

• Only media allowed inside school

• Targeted surveys (help AC Nielson)

匯豐銀行HSBC

國泰金控Cathay FinancialHoldings

Banks

Education 芝麻街美語SesameEnglish

小哈波美語 巧連智

Games 遊戲橘子楓之谷

遊戲新幹線天使之戀

Game淘快閃寶貝

瑞泰人壽MQ大作戰

Food & Beverage 芬達

芬達笑園福樂福樂一番鮮小畫家

可爾必思光泉光泉牛奶

立頓原味奶茶

味全味全牛奶波蜜

波蜜果菜汁雀巢美祿巧克力麥芽牛奶

泰山冰鎮紅茶

統一蜜豆奶

紅牌速纖維他露

舒跑

家樂氏Kellogg’s

乖乖乖乖大胃王

白蘭氏白蘭氏兒童雞精

Entertainment

Others

福斯影業Garfield 2

博偉電影Meet the Robinsons

Government電腦技能基金會 就業服務協會

CNCartoon Network

EPSONJOE POWER

利樂包Tetrapack

ToysRus

CarsTOYOTA Honda

• Subscriptions (i.e. 30/70 split)

• Paid features ublogsnet

• Participate in contests/events, class vs. class, school vs. school

• Integrate vendors(i.e. publisher content/questions) into class website

• Once a publisher integrate with uSchoolnet, others must follow

• Revenue share paid content

• Transactions

• Schools buy DIRECTLY from uSchoolnet (group purchases)

• For every purchase we will donate % of proceeds to schools. Thus encourage them to

buy through uSchoolnet

• Gifts (physical/virtual) to friends

• Annual Yearbook CD (burn class website on CD – replace old yearbooks)

• SMS/MMS voting

Strategies

• Centralized R&D, localized sales

• Expand globally by JV (franchise)

• Down up approach

• Allow teachers to use the system for free

• Indirectly influence other teachers to use the system

• Up down approach

• Offer tools for education departments to communicate and collaborate with schools

• Encourage schools to use uSchoolnet so that they won’t miss any education

departments announcements

• Integrate into computer class curriculum

TW Competitors (Web 1.0)

• Taiwan

• Yam Kids (www.yam.com) (小蕃薯 )

• 2nd largest portal in Taiwan.

• Was largest kids portal in Taiwan 2006

• Was the largest class website aggregator before uSchoolNet 2005

• 2006 uSchoolnet becomes #1 class website aggregator in Taiwan

• 2007 uSchoolnet becomes #1 kids portal in Taiwan

• Educities (www.educities.edu.tw) (亞卓市 )

• Government backed with 10+ million USD back in 1998

• Chung-hwa Telecom(government backed) was forced to buy for less than 300K USD

                          

                                         

uSchool Portal (TW)

uSchool class page (TW)

uSchool class page (TW)

uBlogsnet Portal (TW)

uBlogsnet member page (TW)

Screen Shot 1

Screen Shot 2

US Competitors ( Web 1.0)

• United States

• E-Chalk (www.echalk.com)

• Launched in 1999

• One of the larger K-12 communication Solutions in the States

• Fund raised totaling at least $5 million

• IT tech similar to Blackboard thus cannot shift IT structure to compete with uschoolnet

• Selling systems thus cannot change to ad supported business model

• Teacherweb (www.teacherweb.com)

• ASP model

• Award of excellence 2007 Winner (Technology & Learning)

• IT tech similar to Blackboard thus cannot shift IT structure to compete with uschoolnet

• Selling accounts thus cannot change to ad supported business model

Competitive Advantage

• Experience in porting system into different languages

• Porting from traditional Chinese(TW) to simplified Chinese(CN) to English

• System built for millions of users while competitors are built for thousands of users

• Web 2.0 centric with Web 3.0 plans

• 7 years of hands-on experience from zero to dominating a market

• Can be ad supported business model

• Competitors cannot switch to ad based model without sacrificing their revenue

• Look and feel (example below: which class website would you rather use? )Competitor uSchoolnet

Timeline• Taiwan

• 2004 Fall – Development of uSchool platform

• 2005 Fall – Official launch of uSchool TW

• 2006 Dec – Official launch of uBlog TW

• 2007 – Schools over 50%, start to have revenue

• 2008 – Profitable

Timeline• China

• 2006 Fall – Official launch of uSchool CN

• 2007 Fall – Official launch of u8log CN

Expansion StrategySelf Operate

Franchise