Insights From Korean TMT(Technology, Media, Telecom) Sector

8th September 2006

Copyright © 2006 by Veyond

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means

— electronic, mechanical, photocopying, recording, or otherwise — without the permission of Veyond

This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.

Insights and Trends From Korea

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© 2006 Veyond. All rights reserved. Strictly confidential

MVNO (USA)

Mobile TV (Satellite DMB)

Mobile Music

Internet Portal

Mobile Game

Segment Marketing

Social Networking

http://www.tu4u.com/meet/tuview/tu_view.jsp

http://www.nate.com/

http://cyworld.nate.com/main2/index.asp

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Mobile TV

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Mobile TV

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Mobile TV

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Terrestrial DMB vs. Satellite DMB

TU Media

13,000($13)/month

Nationwide

X

3 Major Broadcasters, 1 Cable Ch.

2 DMB consortium

Free

(for now) Seoul/Kyung-gi

Province

O

Operator

Charge

Coverage

Real-timeBroadcasts

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Satellite DMB CF – focused on ‘Premium Contents’

TU provides relay broadcast like MLB, Japanese Baseball, K-1

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Terrestrial DMB CF – focused on ‘Real-Time Broadcasting’

Due to the Broadcasting Regulation, Only T-DMB can provide real time contents

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Satellite DMB – A killer contents raises the program rating

The rating of relay broadcast for a Japanese Baseball leaguer Lee, Seung-yeob’s game was jumped by increase of Korean People’s interests

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Satellite DMB Overview

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Satellite DMB – Analysis of Subscribers

Subscribers’ Age, Gender, ARPU Trend of S-DMB Subscribers

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Terrestrial DMB – Business Model

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Terrestrial DMB – Business Model

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Terrestrial DMB – Value Chain

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Terrestrial DMB – Subscribers Prospect

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World Mobile TV handset Market Prospect

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Time slot of Classic TV vs DMB

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Where do you want to use DMB?

T-DMB S-DMB

Public Transportation

School, Workplace

Public Area

Home

Auto Mobile

Transportation

School, Workplace

Public Area

Home

Auto Mobile

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Various Types of DMB handsets

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Spreads of DMB in Korea

Watching DMB in the subway DMB phone statues in public

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DMB service in Germany

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Prediction and Reality

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User Profile

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Minute of Usage

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Contents Preference

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Mobile Music

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(MELody + Online)

Melon’s Website Key Features

Mobile Music Portal by SK Telecom

•Launched in November of 2004

•Let subscribers listen to music “Whenever, Wherever, on Whatever Devices They Want”

•Easy access from a mobile and fixed-line network

•Provides unlimited music streaming and downloading services for only 5,000 won ($5) a month

•Downloaded music can be transmitted to mobile phones though Melon

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The Number of Increasing Subscribers

Key Impressions

Key Impressions of Melon

•Total 600,000 subscribers with 40% growth rate a year

•The best business model for consumers who want as much mobility and content available, irrespective of device or file format

•Open & standardized file formats need to be developed to ensure compatibility with any handset or network platform

•Other technology advances and user acceptance according to them in South Korea may affect its success

(MELody + Online)

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Comparison between Melon and iTunes

Focuses on Korean pop music

The overwhelming rate of MP3 phone owners

The prevalent pirated music files

Linked with mobile provider

The market for western pop music is too small

Relatively small market share of iPod

Service Charges are relatively expensive

Cannot transmit music files to other devices

Content

Environment

Price

Interopera-tability

iTunes

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Mobile Music

Korea MNO Mobile Music Overview

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Mobile Game

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Mobile Game Portal by Operator

SK Telecom ‘GXG’ KTF ‘GPANG’

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Mobile Game

Kart Rider ‘ Coca Cola Advertising’

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Mobile Game

Kart Rider ‘ Mini Advertising’

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Mobile Game

Mobile Game Revenue Share Scheme

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Mobile Game

Mobile Game Portal of MNO

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Mobile Game

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Mobile Game

Mobile Game User Survey (2002/2004)

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Mobile Game

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Mobile Game

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Mobile Game

One Button Mobile Game for Female Users

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Mobile Game

Nexon Mobile

N0 2 in Korean Mobile Game Market after Com2Us

Mother Company is Nexon one of the strongest Online Game Company

Annual Revenue 11 million dollar

Trying to converge Online Game and Mobile Game (Wireless and Fixed Internet Convergence)

http://www.nexon.com/

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Mobile Game

http://www.nexon.com/

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Mobile Game

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Mobile Game

Mobile Game Competition

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Mobile Game

2006. August

Vivendi Games CEO Bruce Hack

Korea is No3 country in Mobile Game Market

After US, Japan

Will enter Korean Game Market

Both Online Game and Mobile Game

Korea Game Industry is really advanced and wish to make joint venture

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Mobile Game

KTF Weekly Mobile Game Chart

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Mobile Game

Mobile Game Market Size

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Mobile Game

Game Industry Overall

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Mobile Game

Game Industry & Age Group

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Mobile Game

Mobile Game User Claims

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Mobile Game

Mobile Game Revenue Scheme

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Mobile Game

Mobile 3D Game Handset

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Mobile Game

Mobile 3D Game Handset

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Social Networking

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Social Networking

http://money.cnn.com/magazines/business2

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Cyworld and T Online Joint Venture

Cyworld in Taiwan

Social Networking

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Cyworld in Japan

Social Networking

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Cyworld vs. Naver MySpace vs. Blogger

Social Networking

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Cyworld

Social Networking

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Cyworld Mini Hompy

Social Networking

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Mobile Cyworld 1.8 million

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Social Networking

mms://media.adic.co.kr/tv/wmv300/200511/RV0511084.wmv

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Cyworld Map made by members (UCC, WEB 2.0)

Social Networking

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Cyworld Members & Digital Item Acorns

Social Networking

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Cyworld MiniRoom, MiniMe

Social Networking

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2006 WIBTA (Wharton - Infosys Business Transformation Awards)

Previous recipients of the Award includes Amazon, Samsung Electronics, Standard Chartered Bank, ING Direct

Social Networking

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Cyworld ‘Wave’

V V

Social Networking



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Understanding Korea

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Handset Review

Understanding Korea

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Early Adopter and Active Customer ‘ Prosumer’

Understanding Korea

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Korean Game Market Size

Understanding Korea

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Korean Online Game Market

Understanding Korea

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Korean Mobile Payment Market

Understanding Korea

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Korean Banking User Pattern

Understanding Korea

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Location Based

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Location Based

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Location Based

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Location Based

Insights From Korean TMT(Technology, Media, Telecom) Sector

Business

Transcript of Insights From Korean TMT(Technology, Media, Telecom) Sector