Technology

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When Katy Perry set out to promote her new Epix concert movie she embraced live streaming app Periscope in a big

way. Live streaming the film’s opening and post show Q&A was just the start. For many, this was their first introduction to the concept of live video streaming.

Apps like Periscope (now owned by Twitter) and Meerkat allow anybody with a smartphone to livestream anything they’re viewing, any-where. Understandably controversial - particular-ly among broadcasters and content owners - Katy

Perry for her part has gone all in with the service. Perry was not shy with her views. When

asked by Mashable about the rise of live video streaming and its obvious drawbacks, Perry re-sponded with “you’ve got to embrace the future or you’re left behind. I embrace them mostly as long as they’re not obtrusive.”

Others are not so sanguine. When Mets owner Fred Wilpon first learned of the existence of Periscope at a recent Q&A session, he literally almost jumped out of his seat as he began to pro-cess the horrific implications of fans livestream-

Periscope and Meerkat: Why broadcasters should stop worrying and learn to love mobile streaming

June 2015 GlobeAsia | 113

fuls Carly Fiorina and Jeb Bush have all used these apps to create a sense of immediacy and transparency among their supporters.

Fortunately for these politicians the apps are also a hit with the coveted 18-24 age group demographic that politicians are trying hard to engage. Almost 60% of Snapchat’s users are in this age range and politicians like Rand Paul intend to take full advantage of the reach.

Broadcast journalism’s only true counterpoint to live video streaming is to double down and turn its Achilles heel into a strength. The fact is that the news is not just a string of videos tied together. Its analysis, the narrative and the curated aspect of the videos adds the value. Networks could do quite well if they were able to focus on those aspects of their business that the aver-age person with a smartphone cannot attempt.

Take MSNBC correspondent Kasie Hunt for example. Hunt first used the Meerkat app to stream a live news con-ference from the White House briefing room. Hunt’s approach is instructive to other networks because she engaged viewers by enhancing their experi-ence. Hunt could provide her viewers with a backroom view of the corridors of power because she had access most people just don’t, and this is a good way to stay relevant.

When movie studios found themselves up against pirates and high-quality online streaming, they

Jason FernandesTech commentator and the founder of SmartKlock.

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Nothing the news channels do makes any difference if people just hold a camera up to a television screen and livestream copyrighted content.

ing events at his games. The National Hockey League for its part has banned the use of apps like Periscope and Meerkat by fans.

Probably most concerned are traditional broadcasters like Sky and HBO. If the explosion of Periscope has driven TV cameramen to Zoloft, media executives are not far away. Televi-sion’s strength as a medium has been slowly eroding anyway in the YouTube age. Live streaming apps like Periscope and Meerkat endanger the most de-pendable cash cow - live events. Leav-ing that aside, the potential for copy-right issues alone are enough to make media executives view this is as their industry’s “Napster” moment.

Nobody can say for certain which

of the two reactions, Perry’s laissez faire attitude or Wilpon’s “the sky is falling” terror reaction will prove more appropriate once all the dust settles, but one thing’s for sure: to stay relevant broadcasters will have to choose to either embrace the technol-ogy and evolve or die.

Disruptive innovation is messyMobile live streaming apps have given everybody the ability to stream events happening almost anywhere anytime as long as they have an internet con-nection. This is more a product of the timely intersection of the mass prolif-eration of smartphones with cameras and reliable internet access then the apps themselves.

Smartphones were bound to have this capability sooner or later. The cor-rect next step would be for networks to consider how they can use this new medium to enhance their coverage rather than allowing it to cannibalize their business.

To be clear, if broadcasters go about it as business as usual, Periscope and Meerkat could easily erode view-ership. The main attraction of live streaming for content creators is the lack of filter. Video streaming apps allow musicians to connect with fans and political candidates with their vot-ers, all without filtering their message through media lenses.

Politicians in the US like Iowa Governor Terry Branstad and Senator Rand Paul and even presidential hope-

Technology

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tion awards ceremony as an incidence of possible copyright violation.

In fairness the accusations were hotly contest-ed by Ustream and the company made some valid points but one can see why some might view the technology with skepticism. Live video streaming also presents a unique set of challenges because the software has to analyze and determine con-tent with a high degree of accuracy almost instan-taneously. A tall order with current technology.

Broadcasters: time to embrace fearThere’s no question that the copyright issues will have to be resolved one way or the other but be-yond that, mobile livestreaming is here to stay. It’s going to be very difficult for venues to make rules when all people need to do to break them is to whip out their phones and start filming.

Broadcasters are best combating this by co-opting it. Television will just have to embrace the medium and use it to provide a better service now that there’s more competition from practi-cally anybody with a smartphone.

Broadcasters are probably not imagining things if they sense video streaming apps like Periscope and Meerkat casting sidelong homi-cidal glances in their direction. After all, they say video killed the radio star. If broadcasters play their cards right though and embrace these apps, they could not only survive but thrive in a post-livestreaming world.

responded with box sets with extra features like in-depth analysis and behind-the-scenes content. Networks should do the exact same thing. If they focus on their strengths, they are unlikely to face much competition from amateurs with smart-phones.

HBO’s Mayweather/Pacquiao fightThe biggest problem for news channels and one that I anticipate will continue to plague them for the foreseeable future is that nothing they do makes any difference if people just hold a camera up to a television screen and livestream copy-righted content.

This emerged as a major issue during the Floyd Mayweather/Manny Pacquiao fight broad-cast by HBO in early May. Many were justifiably upset that some had paid $100 to watch the fight while others were using apps like Periscope and Meerkat to watch it for free. One can only imag-ine how Sky Box Office, which recently shelled out £3 million for “exclusive rights” to screen the fight felt about these online pirates.

It didn’t help matters when CEO of Twitter Dick Costolo sent out a tweet (And the winner is... @periscopeco) after the fight that seemed to endorse piracy on Periscope. Costolo later clari-fied that he was misunderstood and that he was referring to pre-fight coverage, but nevertheless copyright violations remain a huge problem for these apps.

Periscope CEO Kayvon Beykpour said that he had a special team in place on fight night to handle these take-down requests and that the system worked pretty well. Still much remains to be done in this area.

Ustream CEO Brad Hunstable weighed in on the issue in an article in online outlet The Verge recently saying “We use a combination of processes and technologies (mostly internally developed) for take-downs that we’ve found more effective than an automated ID tool for this type of live event.” Hunstable said his software can identify copyrighted content within 10 seconds.

This all sounds like a slam dunk unless you start wondering if the name Ustream sounds a bit familiar. It should. The last you heard of Ustream, the organizers of the Hugo Awards were blaming it for botching up their livestreaming event. Ap-parently Ustream kicked the Hugo Awards stream offline when it mistakenly registered a clip from a movie used during the prestigious science fic- N

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Indonesians Conglomerates Buck the Trend

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Columnists18 Paulius Kuncinas Indonesia bourse targets growth despite headwinds

20 Steve Hanke Venezuela: No rule of law, bad money

24 Jamil Maidan FloresSaving Mary Jane: Quiet diplomacy postpones a date with death 108 Wuddy Warsono Lessons from the Himalayas

112 Jason Fernandes Periscope and Meerkat:Why broadcasters should stop worrying and learn to love mobile streaming

126 Scott YoungerUpdate on renewables

128 Keith Loveard Hijacking the national interest

contentsVOLUME 9 NUMBER 6 / JUNE 2015

companies98 The internet, from rethinking the supply chain to ammunition for the AEC GlobeAsia talked to Alison Kennedy, Accenture Strategy managing director in ASEAN about the changes to society and purchasing habits, the obstacles and the opportunities to the nation’s economy.

100 Time for teaCoffee shops abound but now Jakarta has two fine tea cafés where patrons can savor teas from the world’s best tea estates.

102 Omega: Past, present and futureGlobeAsia visited the Omega Museum in Bienne, Switzerland, for a glimpse of the brand’s legacy, matched by an interview with Stephen Urquhart, the brand’s CEO, to understand where Omega is today and where it’s headed in the future.

104 WIKA: Aiming for a bigger international roleWijaya Karya has carved its name on the hall of fame of Indonesia’s best construction companies. With its record of excellence firmly established in Indonesia, Wijaya Karya has a strong foothold to launch deeper into the international arena.

Interview107 Thailand investment bridgeOver 40 small and medium enterprises (SME) from Thailand sought out Indonesian trade partners in a business forum and matching event held by the Thai Trade Center, Jakarta, (TTC) in conjunction with GlobeAsia.

special report116 Made in PolandPoland is aggressively looking to grab a share of the Indonesian market with the tag line “Made in Poland,” promoting its expertise in manufacturing machinery and equipment for the mining, construction, agricultural and defense industries. Its business delegations will visit the country this year.

baselworld special120 Hublot 10 years Big Bang collection: Blinged bang. EVENT130 Indonesia-Thailand Towards AEC 2015In anticipating the ASEAN Economic Community (AEC) which will be implemented later this, member countries are strengthening partnership in the region as well as exploring more business opportunities

Back Page120 BTN Building

excellence firmly establisWijaya Karya has a stronlaunch deeper into the in

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10 | GlobeAsia June 2015

Wealth creation in Indonesia is continuing to grow unabated. GlobeAsia’s

ninth edition of the 150 Richest Indonesians will I am sure be well received by readers eager to see who has made more money over the past 12 months.

The Rich List, however, serves another function as well. It demonstrates that entrepreneurship across the economy is alive and well. Every year over the past eight years, we have observed, interviewed, researched and written stories about Indonesian entrepreneurs who are making their mark on this nation. The Rich List is thus the culmination of our work over a whole year.

It is well known that entrepreneurs are critical in economic expansion. They create new jobs by taking risks and expanding into new businesses. As our Rich List illustrates, Indonesian entrepreneurs continue to do well across the whole spectrum of the economy.

Although there has been a significant fall in the natural resources sector as a result of slumping global commodity prices, consumer spending has continued to grow and construction is picking up. Property players have also done well as a growing middle class seeks better quality housing.

Indonesian conglomerates on the whole have therefore done well. Despite their size, many remain nimble and flexible and are able to quickly adapt to changing environment. This is borne out in a study conducted by Bain & Company titled “Teaching Dinosaurs to Dance.” In most of the world, conglomerates are struggling and are on the decline but in Southeast Asia, they are thriving.

Editor’s NoteEditorialEditor in ChiefShoeb Kagda

Managing Editor Yanto Soegiarto

Deputy Editors Muhamad Al Azhari

Editor at LargeJohn Riady

Senior EditorAlbert W. NontoDenverino Dante

Contributing EditorsFarid HariantoSteve HankeScott Younger

ContributorsSuryo Bambang SulistoWijayanto SamirinFrans WinartaJason FernandesJohn Denton

Special ColumnistJamil Maidan Flores

ReportersVanesha ManuturiDion Bisara

Copy EditorGeraldine Tan

Art, Design and LayoutGimbar MaulanaElsid ArendraAgustinus W. TriwibowoNela RealinoWulan Tagu Dedo Rudi Pandjaitan

Senior PhotographersM. DefrizalSuhadi

ProductionAssistantDanang Kurniadi

GlobeAsia Magazine BeritaSatu Plaza 9th FloorJl. Jendral Gatot Subroto Kav. 35-36Jakarta 12950Indonesia

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The power of entrepreneurship

The report notes that not only are conglomerates in this region outperforming their peers in the developed economies, they are also consistently delivering higher shareholder value than companies that focus on a single business.

Total shareholder value is a very good measure of wealth creation, notes Jean-Pierre Felenbok, one of the authors of the report and a partner at Bain & Company. In an emerging economy such as Indonesia, conglomerates will continue to play a front line role in economic development.

This is good news for Indonesia. As long as entrepreneurs remain free to pursue opportunities, they will create wealth for themselves but also contribute to lifting living standards for all Indonesians. The GlobeAsia 150 Rich List is a celebration of the power of entrepreneurship to make a meaningful difference to the life of the nation.

Shoeb KagdaEditor in Chief

shoeb@globeasia.com SUH

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