asia at the cutting edge? berkman center lunchtime talk series may 29, 2006 eric priest, berkman...
Post on 05-Jan-2016
216 Views
Preview:
TRANSCRIPT
Asia at the Cutting Edge?
Berkman Center Lunchtime Talk SeriesMay 29, 2006
Eric Priest, Berkman Fellow© 2006 Eric Priest
“Today, Asia leads the world in so many aspects of digital technology that it is no exaggeration at all to say the whole world is now watching you . . ., and we all have a great deal to learn from the experience.”
- John Smith, CEO, BBC Worldwide, CASBAA 2006
Why all the excitement?
Much revolves around the high rate of technology adoption Asian economies/consumers fully embraced digital South Korea: broadband in 62% of households China: 400 million mobile subscribers; 65 million broadband
subscribers 20% of mobile revenue is generated from
entertainment
Piracy
Mobile distribution all the rage
Monetizable! “Hip” factor Massive customer base Secure, established billing
Personalization Ringtones Ring back tones Mastertones
Enables the re-monetization of a song
QuickTime™ and aTIFF (LZW) decompressor
are needed to see this picture.
Source: Jay Kim, WiderThan (Music Matters Asia 2006 PowerPoint Presentation)
0
1
2
3
4
5
6
7
8
9
10
December-03 June-04 December-04 June-05 December-05
Global File Sharers (in millions)US File Sharers (in millions)
Source: Digital Music News/BigChampagne
Chinese entertainment co’s competing with online piracy Taihe Rye Music
Only sell music from most popular singers
Deal with search engines: 2 week head start
Lots of value-adds (art, lyrics, karaoke version)
Hook the hard core fans Partner with artist, bundle
music products + services
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
Chinese entertainment co’s competing with online piracy
Jingwen Records Create popular music portal (Koook.com)
Promote artists and encourage user
submissions
Catalog of 20,000 user-submitted songs
The internet: user-created content
The Back Dorm Boys!QuickTime™ and aSorenson Video 3 decompressorare needed to see this picture.
Song of Pig - Over 1 Billion ServedPig, you have two holes on
your nose, when you catch cold, you are snorting
Pig, you have black eyes which we cannot see beyond;
Pig, you have two big ears, and you cannot hear that I'm cursing you silly
Pig, you have a curling tail which you cannot run without
Pig head, pig brain, pig body and pig tail, you are a good baby who eats everything
Every day you won't wake up till noon,and you never brush your teeth and you never fight
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
The internet as source of alternative media
Hu Ge: The Case of the Steamed Bun Murder
How is Asia at the digital cutting edge? Unbundling digital rights Blurring the line between content creator and
consumer Video Music Blogs
Flexibility/adaptability in business model Multiple revenue sources Avoid tragedy of the anticommons - retain more rights Facilitate licensing Cultivate the hard core fan Piracy as promotion
How is Asia at the digital cutting edge? Have really monetized the consumer
“expression” factor Convergence with other forms of online
entertainment (i.e., gaming) Artists taking control; moving straight to
deals w/ distributors Cultivating the hard-core fans (build a
sustainable business model on the 1/3 of fans that will pay)
Concerns with the emerging Asian model? Extremely hits-centric
Long Tail left on the table (except for Karaoke - maybe)
“Phones Matter, but does music?” - Highly technology-focused Distribution focused
Are various digital revenue sources sustainable?
In what ways is Asia behind?
Value adds Searchability Recommendation engines Mobile sphere vs. online sphere
Lack of differentiation between SPs/lack of supporting technologies
Monetizing the digital Long Tail Content-based social networking Interoperability
Anything the West can learn?
Flexibility - let market conditions dictate business models (facilitate, not control)
Embrace user-created content Bundling - products + services Be aggressive about experimenting
with alternative business models Don’t fear digital!
top related