Innovation for Future Smart Devices

Shin’nosuke SuzukiPresident / CEO

Qteras,Inc.

More Integration of Web and Devices

2012/10/04 CEATEC 2012 GCCE Symposium

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Introduction About niconico & Qteras, Inc.

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niconico Launched in Dec 2006 by DWANGO Users can share their own video clips with

viewers’ comments on the web – users can share their experience

User comments flow over the video clip

Comments entry area

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niconico user demographic

Female member is approx. 9 million 　　　　　　　　　　　　

　

■By gender

29.22million

1.71million

Registered users Paid users Mobile users

increase 500,000 users per month increase 30,000 users per month increase 60,000 users per month

7.51million*Monthly membership fee: 525JPY Member can gain various benefits *As of Jul 28th 2012

■By age

10s １８ . ３％

20s４２ . ８％

30s ２１ . ５％

40s １１ .

６％

50s ３ . ２％

Approx.86% population in 20s is the users

other ２ . ６％

Male 67.3%

Female 32.7%

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Qteras,Inc.

Established in Feb 2012 100% owned by DWANGO Deliver “niconico” to “multi-device”

such as TV, video game devices and so on

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For multi-device

Develop “niconico” client application software for “multi-device”➡ A user can enjoy “niconico” on any device

Desktop PC → Laptop + TV Laptop → Smart phone, Tablet, Game device

“niconico” everywhere!

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The Latest Case

Dedicated “niconico” application for TVs in Japan domestic market➡ Sep 25th 2012 Panasonic <VIERA>➡ Sep 27th 2012 Sony <BRAVIA>

“niconico” style on the TVs !

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Multi-Device Market from the view of Web Service Providers

“Multi-Device” contradicts “Web”

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The world dominated by “Walled Garden” Vertical integration model

➡ Two major players has been established global “Walled Garden” strategy

Two major “Walled gardens” are ruling the global market

Service & Contents

Portal & Online Payments

OS, Clients & Devices

Network, Telecom

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Japan also has own “Walled Garden” Devices are not ready for “Web”

➡ Unique and closed spec of current Japanese major net TVs

➡ Needed each own dedicated development and lack of the portability of the development libraries

➡ Closed developers’ communities What we see now

➡ In “niconico” case, some TV can process massive comments but others not, even though they come from the same manufacturer!

Higher development cost, less economics

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Tough barrier to enter the “Multi-Device” market

for the Web Service Providers

Two major global “Walled Garden”

Japanese Industry “Walled Garden”

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Suggestion

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Let there be HTML5

“Web” beyond “Walled Garden”➡ Accept existing web services and web contents

assets➡ unite development communities, and make them

open Japanese manufactures can be great

HTML5 players➡ HTML5 is being ready for your products➡ Japanese Technology must also work for HTML5

“MONOZUKURI” for Open Platform

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Restructure business model

“Self-Ecosystem” is out of date➡ Create a New-Ecosystem, which benefits not only

manufacturers but also contents creators, web service providers and every other stakeholders

Strategic “SHIKAKEZUKURI” for unprecedented “New-Ecosystem”

Manufactures of devices

Web service providers creators users

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He said

Our biggest mistake was betting too much on HTML5

(Tue, Sep 11th, 2012 on Techrunch)Mark Zuckerberg

CEO of Facebook, Inc.

Did he make the same decision

if "Devices" had been following HTML5?

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Tasks from now on “MONOZUKURI” in the open market

➡ Japanese unique technologies can boost “open platform”

”SHIKAKEZUKURI” for new eco-system➡ A new competitiveness comes from a “New-

Ecosystem”

“MONOZUKURI” and ”SHIKAKEZUKURI” are the clue to success

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Thank you