Agreement for Tour in Korea

							            Asia-Pacific Mobility
                 John S. Rajeski




                 John S. Rajeski, VDZ Online Publishers
12/7/2010                   Asia Tour: Seoul              1
                      Overview –
    Brief Bio
    Asia-Pacific Snapshot
    Focus on S. Korea:
           Technology Landscape
           Mobile TV
           Mobile Communities
           Mobile Banking
           Mobile Publishing
    Wrap-up

                      John S. Rajeski, VDZ Online Publishers
12/7/2010                        Asia Tour: Seoul              2
                About Me:
    CScout Trend Consultant
    Currently based in Seoul, S. Korea
    Lived and worked in Bangkok, Berlin,
    Cairo, San Francisco, Seoul and
    Singapore
    Background in Tech / Silicon Valley
    Co-founder – Mobile Application Company
    Contact Me: http://rajeski.com
               John S. Rajeski, VDZ Online Publishers
12/7/2010                 Asia Tour: Seoul              3
            Asia-Pacific Snapshot:
    Asia cannot be regarded as one homogenous market,
    but rather one region made up of many diverse markets

    The Asian wireless market opportunity is remarkably
    large and relatively untapped, particularly as a substitute
    for wire line voice telephony

    While mobile commerce has not yet hit „critical mass‟ in
    Asia, there are numerous pilots and some early
    successes

    Over 1/2 of Asian enterprises are exploring the world of
    mobile enablement, and are in the planning stage
                      John S. Rajeski, VDZ Online Publishers
                                                               Source: IDC
12/7/2010                        Asia Tour: Seoul                            4
               APAC Market Potential:
    Despite relatively lower disposable income Asia's
    modern cities: Hong Kong, Singapore and Seoul,
    wireless penetration rates come close to those in the
    most developed Western countries

    Singapore, 80+% use a smart mobile phone,
    comparable to Europe's most wireless-savvy country,
    Iceland

    Sheer opportunity that it represents:
           US 300+ million people
           Europe 350+ million people
           Pan-Asian region (ex. Japan) roughly 3 billion people

                             John S. Rajeski, VDZ Online Publishers
                                                                      Source: IDC
12/7/2010                               Asia Tour: Seoul                            5
            South Korea Landscape:

          Top 3 Broadband Enabled Nations:
           Hong Kong*
           Japan
           S. Korea
          S. Koreans and Their “PC” Habits…
          Seoul Wireless Initiative…

  *Excluding Mainland China
                         John S. Rajeski, VDZ Online Publishers
12/7/2010                           Asia Tour: Seoul              6
            Top 3 Global PC Usage:
1. Sweden – 82%
2. USA – 81%
3. S. Korea – 80%
   Percentage of people with regular PC
   access (home, work, etc.)




                  John S. Rajeski, VDZ Online Publishers
                                                           Source: PC Advisor
12/7/2010                    Asia Tour: Seoul                                   7
                Top 3 Global Online*:
  1. S. Korea – 80%
  2. Sweden – 79%
  3. USA – 78%
     A major factor in why traditional print
     media readership continues to decline…




*Defined as „occasionally‟   John S. Rajeski, VDZ Online Publishers
                                                                      Source: PC Advisor
  12/7/2010                             Asia Tour: Seoul                                   8
      Top 4 Global PC Ownership:
1.        S. Korea – 93%
2.        Kuwait – 84%
3.        Sweden – 81%
4.        USA – 76%
          How are S. Koreans utilizing their high
          PC ownership concentration?
           Here‟s one example…

                     John S. Rajeski, VDZ Online Publishers
                                                              Source: PC Advisor
12/7/2010                       Asia Tour: Seoul                                   9
S. Korea Mobile Computing Usage:
    City-wide Wi-Max Network (3 Mbits Per Second)




                 John S. Rajeski, VDZ Online Publishers
12/7/2010                   Asia Tour: Seoul
                                                          Source: Korea Times   10
     Leading Global Mobile Firms:
  Top 5 Handset Manufacturers: Q4/2007
1.Nokia – 38% (437 M Units Sold)
2.Samsung – 14.3% (162 M Units Sold)
3.Motorola – 14.1% (159 M Units Sold)
5.LG – 7% (80.5 M Units Sold)
  Combined just under 22% of the Global
  Market (w/ 2 S. Korean Firms)
  How are their phones used?
             John S. Rajeski, VDZ Online Publishers
                                                      Source: Wireless Asia
12/7/2010               Asia Tour: Seoul                                      11
S. Korea Mobile Handset Features:
    Media Device – Personal Portable Media
    (PPM)
    Larger Screens
           Samsung – Focus on External Memory
           LG – Focus on Internal Memory
    Digital Multimedia Broadcasting (DMB)
    (including Video on Demand)
    HSDPA (High-Speed Downlink Packet
    Access)
                      John S. Rajeski, VDZ Online Publishers
                                                               Source: Research on Asia
12/7/2010                        Asia Tour: Seoul                                  12
          S. Korean Mobile TV Today:
        48 million, 9 million mobile TV subscribers
        (18.75%)

        Euros 9.00 / $13.00 / Won 12,243 Monthly*
        Subscription (13 Video / 36 Audio Channels)

        This adoption rate has primarily helped
        Samsung and LG sell their higher-end, TV-
        enabled handsets
*Excluding Voice / Data Fees   John S. Rajeski, VDZ Online Publishers
                                                                        Source: Telecoms Korea
    12/7/2010                             Asia Tour: Seoul                                 13
     Mobile / Virtual Communities:
    Social Outlet: Why do S. Koreans
    Embrace Virtual Communities?
           Collective vs. Individualist Society
           PC “Bangs*” primary access point
           Low, hourly rates – roughly $1.00 per hour
           24/7 access – virtually unlimited
           „Starbucks‟ ubiquity – they‟re everywhere
           Spurs S. Korea to lead global adoption rate of
            Virtual Worlds
                        John S. Rajeski, VDZ Online Publishers
                                                                 PC Bang = „Net Cafe
12/7/2010                          Asia Tour: Seoul                                    14
     Mobile / Virtual Communities:
    Cyworld, leading “Social Networking”
    medium in S. Korea (18 M Subscribers)
           (FYI: Mixi is the leader in Japan)
    38% of S. Koreans use Cyworld
           30,000 business enterprises therein
           Selling over 500,000 items of digital content
            (avatars, etc.)
           Music alone – 200,000 songs per day in
            Cyworld

                        John S. Rajeski, VDZ Online Publishers
                                                                 Source: Business 2.0
12/7/2010                          Asia Tour: Seoul                                     15
     Mobile / Virtual Communities:
    Blizzard Entertainment announced subscriber
    counts for its smash hit fantasy RPG recently
    broke the 10 million mark
    Warcraft players 2.5 M in N. America (Asian
    subscribers account for the majority of the
    remainder)
    S. Korea several TV stations show gamers play
    (sporting Formula One-style body suits including
    endorsements from Korean firms)
           Live studio audiences, interviews, league reports,
            "game-casters", and even adoring fans!!!
           Warcraft held their global debut of their follow-on
            release this past June live in Seoul...
                                                            Source: Blizzard Entertainment
                          John S. Rajeski, VDZ Online Publishers
12/7/2010                            Asia Tour: Seoul                                 16
        S. Korea Virtual Payments:
    Combined spending of all S. Korean
    Cyworld participants is about Euros
    206,000 / $300,000 / Won 282 plus Million
    per day
    This nets out to about Euros 4.83 / $7.00 /
    Won 6,500 per user per year
    By comparison, MySpace is at Euros 1.50
    / $2.17 / Won 2,000 per user per year
    MySpace just 30% of Cyworld revenues
                 John S. Rajeski, VDZ Online Publishers
                                                          Source: Business 2.0
12/7/2010                   Asia Tour: Seoul                                     17
            S. Korean Mobile Banking:
    S. Korea leader in Mobile Banking
           (FYI: Japan is a leader in Mobile Payments)
    Introduced Sept. 2003 by LG Telecom / Kookmin
    Bank
    Mobile banking in S. Korea has about 5 Million
    active subscribers
    Pay 800 Won ($.80) = $4.25 M / Euros 2.93 M /
    Won 4,000,000,000 per Month
    Success of the service due to co-operation
    between the banks, mobile operators and
    handset manufacturers (Korean Chaebol…)
                                                            Source: Analysys Research
                          John S. Rajeski, VDZ Online Publishers
12/7/2010                            Asia Tour: Seoul                               18
            S. Korean Mobile Banking:
 The mobile payment market in S. Korea
 rose to about 1.3 trillion won last year on
 the steady growth of digital content
 market…
Breakdown: Euros just under 1 Billion / $
 just over 1 Billion – again, this is just
 content that‟s being paid via Mobile
 Banking…

                   John S. Rajeski, VDZ Online Publishers
                                                            Source: CDB
12/7/2010                     Asia Tour: Seoul                            19
     S. Korean Mobile Publishing:
    PC-usage, Mobile TV, Social Networking,
    all share one thing in common: Content
                     Why???
    Captive audience e.g., mass-transit
    commuters, homogenous market-place,
    and a fixation on technology
    55% of all S. Korean mobile-subscribers
    now use „010‟ pre-fix which is 3G-enabled
                John S. Rajeski, VDZ Online Publishers
                                                         Source: Korea Times
12/7/2010                  Asia Tour: Seoul                                    20
     S. Korean Mobile Publishing:
    S. Korea – Mobile marketing trendsetting
    SK Telecom, 500 clients controlling 80% of the
    country's mobile content market (including
    advertising)
    AirCross pushes multimedia ads to 1 M users
    who have opted in (lured by phone bill
    reductions)
    Database of 4 M SMS opt-ins (multimedia is
    growing at a faster rate) w/ big advertisers such
    Coca-Cola, Mercedes, and BMW since its
    launch last year

                   John S. Rajeski, VDZ Online Publishers
                                                            Source: ZDNet
12/7/2010                     Asia Tour: Seoul                              21
    S. Korean Mobile Publishing :
    SK Telecom signed an agreement w/ Sony
    Pictures Television International (SPTI), -
    one of the world‟s leading media
    companies - establishing a strategic
    alliance for content services




                 John S. Rajeski, VDZ Online Publishers
                                                          Source: Korea IT Daily
12/7/2010                   Asia Tour: Seoul                                   22
     S. Korean Mobile Publishing:
 The mobile payment market in S. Korea
 rose to about 1.3 trillion won last year on
 the steady growth of digital content
 market…
Breakdown: Euros just under 1 Billion / $
 just over 1 Billion – again, this is just
 content…


               John S. Rajeski, VDZ Online Publishers
                                                        Source: CDB
12/7/2010                 Asia Tour: Seoul                            23
                  Wrap Up:
    You‟re all here touring S. Korea and Japan
    Maximize your time
    Follow-up and develop the relationships
    that you establish
    Look towards the long-term in developing
    your business presence in S. Korea /
    Japan
    Partner w/ S. Korean / Japan firms looking
    to expand (Cyworld, Oh My News, etc.)
                John S. Rajeski, VDZ Online Publishers
12/7/2010                  Asia Tour: Seoul              24
            Asia-Pacific Global
                 Mobility
                John S. Rajeski




                 John S. Rajeski, VDZ Online Publishers
12/7/2010                   Asia Tour: Seoul              25