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Slide 1: New business models in online communities Benjamin Joffe Managing Director | Plus Eight Star Ltd
Slide 2: Innovation in Asia?
Slide 3: General assumption #1 Everything from USA is great
Slide 4: General assumption #2 Everything from Asia is weird (and sometimes funny)
Slide 6: Japanese like texting on mobile Because they have small fingers Anonymous manager at a telecom company in 2000
Slide 7: Asians like avatars Because they read mangas and watch animes Anonymous manager at an Internet company in 2005
Slide 8: Chinese like ring-back tones Because they go to karaoke a lot Anonymous manager at a foreign media company in 2006
Slide 9: wrong explanation Giving the right question to the
Slide 10: Not-invented-here spiral of oblivion
Slide 11: Make fun Stereo type Oblivion Selfevident Adopt Re-invent
Slide 12: Why look at Asia?
Slide 13: 1 are strategically important Because some Asian markets
Slide 14: #2 economy #1 population #1 digital society
Slide 15: Broadband connections in Japan and Korea are up to 10 times faster than the OECD average. Japan also had the lowest relative monthly broadband charges/Mbps OECD Report, July 2007
Slide 16: Consequence #1 Internet penetration and speed
Slide 17: Consequence #2 Internet literacy
Slide 18: 2 Because some great ideas have already been proven there
Slide 19: 2002 2005 2005
Slide 22: 1999 2003+
Slide 24: How about those concepts? Meta-blogging Content scrapping Trust-based information sharing Personal Resource Planning (PRP)
Slide 25: Alexa School of Investment Quiz
Slide 26: Global 1 2 3 Yahoo! Google YouTube China Japan South Korea 4 5 6 7 8 9 10 MSN Windows Live MySpace Facebook Wikipedia Hi5 Orkut
Slide 27: Global 1 2 3 Yahoo! Google YouTube China Japan Yahoo Japan South Korea Yahoo Google Japan 4 5 6 7 8 9 10 MSN Windows Live MySpace Facebook Wikipedia Hi5 Orkut Google YouTube Google YouTube Yahoo Wikipedia
Slide 28: Global 1 2 3 Yahoo! Google YouTube Baidu QQ Sina China FC2 Japan Yahoo Japan South Korea Naver Yahoo Daum Google Japan 4 5 6 7 8 9 10 MSN Windows Live MySpace Facebook Wikipedia Hi5 Orkut Google Netease Taobao Sohu Tom Yahoo 56.com YouTube Mixi Rakuten Nicovideo Livedoor Wikipedia Goo Cyworld Nate Google YouTube Empas Gmarket Auction
Slide 29: Global 1 2 3 Yahoo! Google YouTube Baidu QQ Sina China FC2 Japan Yahoo Japan South Korea Naver Yahoo Daum Google Japan 4 5 6 7 8 9 10 MSN Windows Live MySpace Facebook Wikipedia Hi5 Orkut Google Netease Taobao Sohu Tom Yahoo 56.com YouTube Mixi Rakuten Nicovideo Livedoor Wikipedia Goo Cyworld Nate Google YouTube Empas Gmarket Auction
Slide 30: SNS are a new media
Slide 32: Genetics of SNS
Slide 36: Visitors Today / Total Updated contents Personal URL / Add to my favorite Parameters These figures reflect user’s various statistics Emotional status My photo - Content copies (scrapping) - Registered number as a favorite Music Player Bought by user Comment Name & Gender [Neighbors] View this person’s neighbors [Mini-room] Cyber residence of user Comment by neighbors [Main menu] Configured by user Skin Purchase new skins for a coordinated background, icons, etc.
Slide 38: Q Bi: cyber $ Secretary E-mail Online status QQ buddy list Weather Online disk Wireless service Mini portal Music Game Interaction Panel admin Making friends E-magazine C2C e-commerce Stock info Address list Group list Last contacts SMS Main menu Tencent browser History Chat rooms Search Multi-person chat Game/Music SMS/MMS File transfer Voice/Video Friend name: Cathy Ad Chatting with Cathy Cathy’s QQ Show Take a group photo with Cathy’s QQ Show Cathy’s QQ Zone Background Screen shoot Send pic Active emotion Emotion Font My QQ Show Input area IPTV QQ Pet
Slide 40: Metrics Pageviews Number of users Revenues
Slide 41: Social Network DNA
Slide 42: Starting date 2004 1999 2004 1997
Slide 43: Active accounts 60 mln 20 mln 14 mln 300 mln
Slide 44: Reach (Internet users) 200 mln? 35 mln 90 mln 200 mln!
Slide 45: Revenues 2007 (USD) 150 mln {200 mln} 100 mln 520 mln
Slide 46: Operating Profit 2007 (USD) (50 mln) {100 mln} 35 mln 224 mln
Slide 47: Valuation (USD) ? MSSE 15 bln? n.a. TSE 1.8 bln HKSE 11 bln
Slide 48: Main business models Ads (Digital goods) (Ads) Digital goods Ads (Ads) Digital goods Games Mobile VAS Jobs Mobile VAS
Slide 49: Ads or Digital goods? 1. Who is the client? 2. Not incompatible 3. There is more!
Slide 50: Other business models Targeted Ads Storage Monthly fee Personalization Alerts…
Slide 51: Key features Invitation system Closed/Open/Semi-closed Sticky features Payment solutions Mobile Online/Offline connection
Slide 52: Social design Focus Values Atmosphere Demographics
Slide 53: Psychological design Identity / Identities Trust
Slide 54: The missing blocks
Slide 55: 1 Payment infrastructure
Slide 56: 2 Trust system
Slide 57: 3 New value chains
Slide 58: To remember
Slide 59: 1 Are you the target?
Slide 60: 2 Resist the temptation to stereotype
Slide 61: 3 Look for concepts Adapt the rest
Slide 62: Thanks! benjamin@plus8star.com Published research Inside Cyworld Inside QQ Free sample | www.plus8star.com