the future of digital publishing - telkomsel indonesia june 2011
DESCRIPTION
Presentation Material for 'Kongres XXIII Serikat Penerbit Surat Kabar' event held in Bali 7-9 June 2011.TRANSCRIPT
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Surat Kabar
The Future of Digital Publishing
Today’s agenda:- Indonesian telco penetration & Telkomsel Highlights- Teens Rules Indonesian mobile market & internet usage- Teens market: Customers are changing- What’s beyond printing?- Social Media Networks- Making Digital Content Pay- Summary: Key points
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
Source: Telkom Internal market research
35 Million Unique Users download & subscribe to Mobile Games, Music, Info..etc
500 million P2P SMSes transacted DAILY – 800 million per day during Ied
7 Million chargeable CONTENT-SMSes purchased DAILY
Broadband in 21Mbps and 25 big cities
25 Million Data Active Users
Indonesian Telco Penetration
± 8.7 mn ± 35 mn ± 3 mn
CellularFixed
WirelineFixed
Wireless Broadband
Penetration 16%
Penetration
71%Penetration
2%Prepaid cards 97.5%Postpaid cards 2.5%
600k downloads daily NSP
1.5mio BlackBerry Active Users
35,000 BTS (7.000 BTS for 3G)
RBT is 87% of total music Industry Nation Wide
subscriber base 100 mio Psst: More than our next two competitors added up..
Network in 15 PELNI ships
± 200 mn
1,2 Gbps Blackberry network
Indonesian Telco Penetration andTELKOMSEL Dynamics
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
*Revenue Forecast from New Business
8% 15% 25%
1. Indonesian is ready to take off on CREATIVE INDUSTRY
Telkomsel support Indonesian Government program to nurture Creative Industry, including digitalization on Indonesian Culture Heritage
2. Core business is slowing down and getting Red. Value Added becoming the new Blue Ocean
Before 2008
<5%
2009 2010* 2014*
Revenue Contribution from New Business(Digital Music, Content, Mobile Advertising, and T-Cash)
Content is a Serious Business for TELKOMSELDigital Music, Games, Entertainment, Religious Contents, and other Cultural Heritage Contents
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
TELKOMSEL Technology RoadmapEvolutionary step through GPRS, EDGE, W-CDMA/HSDPA and LTE
1995
1 - 21Mbps
2002 2006 20072001 2003 2004 2005
9.6 kbps
170 kbps
384 kbps
512 kbps
simPATISMS
Post-PaidGPRSMMS
Mobile DataWap, Web, SMS
Pre-PaidGPRSMMS
GSM
GPRS
Enhancement GPRS Services
Enhancement Voice & Data Capacity
WiFi
W-CDMA/HSDPA
EDGE
Hot spot with High speed Internet
Trial
Trial
LTE
3G
2008 2009 2010
Video Call
LTETrial
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
1. From Single product to Total Lifestyle & Entertainment Packages
TextBased
RBT
Rich Content
RBT
Rich Content
Full Track
Video
Ringtone
Rich Content
On-devicePortal
FullEntertainment
FullTrack
Video
Ringtone
Music
RBTConcertTicket
Shows
Photo
Lyric Community
Device Play
2002 2006 2007-2010
Content Search
2010 - then
2. From Mass Market approach to Niche and Multiple Market (Community Approach)
3. Entertainment & Lifestyle centric approach:• Developing new and upcoming artist exclusively• Working with well known artist to promote new exclusive contents• Enrich delivery channels through diverse handset and OS types
Video
Transforming from Telecommunication Company to Lifestyle CompanyDigital Music, Content and Application Focus
Payment
Merchandising
Apps
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
Services for Future Mobile BroadbandCommunication to Lifestyle Assistance
Broadband Services Driven
14
Education Services Financial Services
Entertainment & Media Services
Music, games, apps, TV, Social media, etc
Transport Services
Tracking, ticketing, cargo, traffic info
Healthcare Services
Health record, Medicine, etc
Comm
unication to Lifestyle Assistance
New Wave Business Telkomsel
Now Future
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
Indonesian teens rules!
Demand on smartphones is very high
Source: http://www.nielsen.com
Now drive Indonesia's mobile phone market
80%
10-19
20%
Indonesian Teens Population Composition
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
19%
53%
20%
6% 2%
<1818-2728-3738-47>48
Data from Eyeka.asia – June 2010
Youth and young adults, age of below 27, are contributing more than 70% of Mobile WEB usage in Indonesia
Data ComScore, Opera, Checkfacebook.com, buzzcity.com, inmobi.com
Indonesians are the most prolific users of mobile internet & social media:• 31 million facebook users – 2nd largest after US• 3rd largest twitter user world wide •Highest Twitter penetration rate worldwide (20.8% or 1-to-5)• 2nd largest Operamini mobile browser users• World highest mobile browsing intensity, 661 pages per month/person• The largest BlackBerry Users in the region (5 million)• 5th Largest Internet Market in Asia (after China, Japan, India and South Korea)• Top ranked in Mobile WEB advertising: BuzzCity top 2, InMobi top 3 and AdMob top 5
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
FreedomGive Me Choice and the More the Better
Customization Make It My Own
ScrutinityI Will Check It Out Before I Go to the Store
IntegrityDoes This Company Deserve My Money?
Source : Grown up digital - Don tapscott
Collaboration Let Me Help You Make Your Product or Service Better
EntertainmentMake It Fun
Speed Serve Me Now
Innovation Give Me the Latest
Attitude of Net Generation:
But are they Loyal to us ? Giving us Value and willing to Spend ?
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
“Handphone”
Laptop Netbook
Smartphone
Need LifestyleShifting Between
Tablet
iPad, Samsung Galaxy tab
Blackberry, iPhone, Android
PC
Changing from Traditional phone types into:• Lifestyle Mobile Phone : iPhone vs Blackberry vs BB like phone (Nexian, CSL BlueBerry, LG).• Internet Centric Device : iPad, Samsung Galaxy Tab, Dell Streak Motorola Xoom, BlackBerry Playbook.
Customer wants moreShifting from NEED to LIFESTYLE
Complexities:• Smartphone, Data capability (EDGE, 3G, 3.5G, LTE), Touch screen, Camera, GPS, Gesture interface.• More varieties of Mobile phone OS: Symbian, Linux, Android, RIM, iOS (iPhone), Windows Mobile.
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
Technology changes, but so do Societal norms
Trust in news brands has eroded over time
Value of brands (relationship-based) being replaced by search (transaction-based)
Business Model is transforming
Tour of the last 210 years of information (+5 years) Time for Social Media Distribution and Rich Content targeted Segments
Sources: Where is everyone? http://www.baekdal.com/media/market-of-information,Apr 2009
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
What’s beyond print?
$ ?
ePaper Interactive and Rich WEB siteTraditional printing
OS & Devices Interdependencies
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
Books, References; 18%
News; 8%
Entertainment, Music; 15%
Education, Health; 13%Lifestyle, Hobbies;
13%
Utilities, Productivity; 9%
Social networking; 2%
Games; 22%
26% apps developed for iPad go into Books or News category
Sources: Macstories.net, Federico Viticci, “Tha AppStore has now over 10,000 apps” 12/6/2010
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
In general, most mobile apps are paidShare of paid apps on different platforms and their average price
Sources: Distimo App Store Analytics, “ Mobile Application store. State of Play”, 18/6/2010
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
Social Media Networks: Explosive uptake
Information flow through different types of Social Medias Networks:•Blogs•Social networks•Micro blogs (twitter)•Podcasts•Social bookmarking•Wikis•Online video•Widgets•Photo sharing•Virtual worlds•Forums•Presentation sharing
definition: The act of a citizen, or group of citizens, playing an active role in the process of collecting, reporting, analyzing and disseminating news and information. The intent of this participation is to provide independent, reliable, accurate, wide ranging and relevant information that a democracy requires.
Participatory Journalism / We Media / Citizen Journalism
Emerging Media Ecosystem
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
To charge or not to charge?
Give them all or just a selection?
Three-step process to create a successful model for the sale of online/mobile content will involve the following:
1. Find the sweet spots•Exclusivity
The content must be truly exclusive and not easily replaceable by substitutes.
•Target audienceSome kinds of content have a natural target audience that is more willing to pay for the content than other audiences.
•PopularityCertain content areas are more popular than others, and attract larger audiences.
2. Build winning conceptsA clearly differentiated user experience. This might include interactive elements in news and magazine applications.
Deeper content offerings. These should go beyond the standard in certain carefully targeted topics, such as sports, finance, cooking, or health, to name a few.
Add-on services. Publishers can enrich content with premium and complementary services such as conference calls with journalists or live video streaming.
3. Define the right pricing mechanismPublishers should look to differentiate their content offerings, creating a variety of products and packages at multiple prices
Sources: PaidContent.co.uk, Booz&Co: Making Digital Content Pay 2010
Making digital content pay
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
• Don’t focus on your customer – Engage them to co-innovate your services
• Don’t create products & services – Create consumer experiences, enrich them by adding value
• Rethink your brand - No longer just promise or image, it become a relationship
• Develop a strategy to plug into influence networks. (Social network, Blog, Instant messaging, YouTube, etc)
• Move the Net Generation into the center of your marketing campaigns. They influence all other generation
• Create additional values through Rich and Attractive Contents
• Indonesian Market goes for Mobile Distribution Channels
Summary: Key Points
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
Terima Kasih
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
Indonesia, the next big thing in digital mediaExtensive activities among social network sites,
Portals Acquisitions:•Koprol by Yahoo!•Kaskus by GDP (Djarum)•Disdus by Groupon
Other facts:• 2nd largest total users of
Opera mobile browser • World highest mobile
browsing intensity, 661 pages per month/person
• The largest BlackBerry Users in the region (1.3 million)
• 5th Largest Internet Market in Asia (after China, Japan, India and South Korea)
Data ComScore, Opera, Checkfacebook.com
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
• Users adopt mobile devices from the start instead of migrating from landlines to mobile services.• Mobile ownership was up 54% in 2010 from 20% in 2005, whilst the use of landlines have decreased from 25% to 11%.• 20% have more than one SIM card and 9% have two phones for personal use.• 58% of consumers spending less than Rp. 50,000 (@USD 5) per month in 2010 compared to only 18% in 2005.• Low-spending category contributed to the increasing popularity of CDMA telephones, with 26% market share 2010.
• More than 70% of youths in the 15 - 19 year old category own mobile devices, while the number of 10 - 14 year old with mobile phones more than tripled in this five-year period.
• Instant messaging or chatting is the top use of the phones for today’s young Indonesians, who prefer this use of the devices over voice calls or texting.
subscriber: 200mil. by January 2011240 mil. eo 2011
Mobile Phones Penetration, in INDONESIAHandset & Consumers penetration figures. Customer expect more than just traditional services
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
Bali 7-9 Juni 2011 - Kongres XXIII Serikat Penerbit Suratkabar
iPad ?
Where to go?iOS, Android?
Others upcoming Tabs?
Kindle ?
Social Media ?