Digital Publishing in Korea Challenges

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Digital Publishing in Korea- Challenges
Experiments -

• Jeong-Woo Kil
• President and CEO
• JoongAng mb, Korea

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Korea is Unique ?

• 80 of 43 million population is high-speed
  internet connected.
• 40 of them are subscribing wireless services.
• 78 of the total population regardless of ages
  carry mobile phone, sometimes 2 or 3.
• 40 of them subscribe 3G-plus tech serviced
  mobile phones and getting increased.
• Top 4 Giant portals in Korea are
  Korea-originated ones. And Yahoo and Google are
  still underdogs.

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New Media Service Giant Portals

With the platform service dominator, system
operators can easily enter the market without
barrier.
Mobile service controlled by Telcos
Content Providers(CPs) are underdog.
gt Content service firms become Passive CPs
Giant Portals determine the Online Business
Pattern
IP-TV entered the Broadcasting Service Market
Network operators lead the market.
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Limits of Content Providers in Korea

• Winners of the market so far.
• Online Portals
• Mobile Telecom Companies
• IP-TV, Digital TV Wired Network Operators

Market is dominated by Platform Service Operators
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Little Room for Traditional CPs !
Wireless/wired service operators create strong
relationship with their own subsidiaries
(killer-cp) and expanding their influence in
the market.
KT
SKT
IHQ
IPTV (Hanaro Telecom)
Sidus FNH
IPTV (KT)
Seoul Records
 Olive Nine
Satellite broadcasting (Skylife)
Satellite DMB (TU Media)
Ntreev soft
Bluecord Tech.
Mobile Communication (KTF)
Aircross
Mobile Communication (SKT)
Nasmedia
YTNMedia


Portal (SK Communcations)
Portal (KTH)
ltKT-SKT Media Business 2008.02gt
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JMnet a leading multi-platform media in Korea
Newspaper
????-JAPAN

Magazine
JoongAng Media Network
Broadcasting
movieweek-JAPAN
On-line
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Our Company is a Content Company..

• Starting with a quality newspaper company1.7
  million copies daily
• Currently multi-platformed company and more than
  60 of revenues come from non-newspaper business.
• Publish several foreign magazine titles by joint
  venture and licensing.and run two titles
  overseas by joint venture and licensing in China
  and Taiwan.
• Operates corporate website called Joins.com
  ranked top among media-run sites, but

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Our magazines JoongAng Media Network
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• On-line Market (1)

Individual Magazine website

• Each magazine operates individual homepage due
  to different concept
• ? Mixing On-line Service Off-line feature
  Synergy, not enough!

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I. On-line Market (2)
Women Portal patzzi.com (since 2000)

• Integrate magazine content
• to build a portal site
• Ranked No.1 among women
• portal sites
• ? i) Compare to other portal
• sites, content shortage
• occurred
• ii) Need more quality service to
  meet portal users demand
• (low rates of participation)

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I. On-line Market (3)
E-book Service
publishing

• Attempt to circulate off-line magazine in
  On-line Service (Ex. previous issue)
• Provide exact format of off-line content through
  on-line service
• ? It loses users' interests (No searching
  service, Lack of pictorial feeling)

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Magazine Reader Technology (WPF) a Slight
Progress
WPF (Windows Presentation Foundation)

• Same visual effect of flash quality
• Simple and easy upload using templates
• Able to add shopping, VOD and advertising
  technology
• Available through magazine homepages or widget
  connections

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• Mobile Market

Mobile Service

• Providing convenient
• services
• ( Hot code, Automatic
• updating Service)
• Use mobile phone
• as an access route to purchase items and
  select personalized content
• ? Barriers
• Service charge / Micro-
• payment via mobile

Hot code service
Personalized Content Service
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• Broadcasting Market (1)

VOD Service
tv.Joins. com
TV Portal (Gom TV)
publishing
IP-TV (Mega-TV) (Hana-TV)
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• Broadcasting Market (2)

Cable TV (Qchannel)
Broadcasting Service
TV Portal (Gom TV)
publishing
publishing
IP-TV (Mega TV)
DMB (TU N-Dolphin)

• Use Magazine Content - Women related know-how
  Stories? Cable TVs competition makes programs
  difficult to target specific groups of
  audience

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Digital Publishing in JoongAng mb
Adding Values into Content
Transforming Content
III
II
I

• Operating own magazine website by digitizing
  offline content

Selling content to Market dominator (CP)
Developing Operating Value added services
However, partnership with major platform
service operators appears not effective in making
profits and sharing business know-how.
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What we are experimenting?
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New Approaches to Digital Publishing

• More unique and value added services than
  offline content service
• More autonomy from offline publishing
• Less dependent on telcos by creating
  cooperative partnership with platform operators
• More independent-services while having
  partnership with major platform operators

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Licensing Joint Venture Titles Offline first
Licensing (Taiwan)
Outbound JV (China)
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Content Syndication Digital going abroad
koreastyle.163.com (China)
? 2007.11.15 open ? Korean Fashion/Beauty/Lifestyl
e ? Business Pattern - Joint Operation -
Sharing Ad profits ? 100,000 UV per day
300,000 PV per day -gt Goal achieved in one
month!
Partnership with Portal in China makes us
rather an active operator. And it works as
a marketing tool for newly launching Korean women
magazine in China.
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New Channels for Distributing Content
Korean content (Hallyu Korean Wave) business
in Lotte Department Store in
Beijing (to be open in July 2008)
Various Channels for distributing content
New media
CeCi Lounge
Mobile
Magazine
On-line

• Targeting 20s
• Multi Content lounge (Coffee shop Content Shop
  Event-Zone)
• Connecting magazine content and VODs plus
  service
• Collecting customer DBs, Selling Content,
  Advertising, Content Service Testbed, Promoting
  Brands.

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Restructuring for Digital Magazine (1)
Operating In-house Multimedia Team (1)

• Coordinating Cooperating between editors and
  Web PDs
• Developing new platform services / Extending
  services
• Marketing and advertising department ? To
  investigate new media business

Collect data
Planning
Multimedia Team
Upgrade content value

• Selecting Content
• Organizing service routes
• Re-writing

On-line. mobile, IP-TV, Broadcasting, e-Book,
DMB,

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Restructuring for Digital Magazine (2)
Cooperation Own Content Outsourcing
Platform Events
Planning / Producing specialized content with
external platforms operator
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Open Mobile Service
Use Open -Wireless internet network
to reach
closer to mobile customers
customers
customers
Mobile internet service provider
Open -Wireless internet network
KTF
LGT
SKT
Own Mobile server
content
content

• Promote mobile membership Data Base
• Use CRM Tools to assemble offline publications
  online sites
• Sales Cross-media advertising
• (Integrated Ad Marketing)

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Building a More Committed Online Community is a
Key !
Searching for a new digital publishing market to
maintain the power of a content provider
Content
Community
Creating Platforms
Bulletin Board
Magazines VOD content
Meta Blog


SNS Platform
Specialized community Service
Professional Content in Fashion, Beauty,
Living, Childcare
Micro Blog
Brand Event CMS
Integrated Event Information in various sectors
Biz
UCC Consumer Report
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Making Profitable VODs
Designing the new route to produce profitable
VODs for operators
TV advertorial programs
Creating Business Partnership
Advertiser
CP
Advertiser covers the cost of production and
broadcasting media
X
Ad Fee
Payment
Exposing Ad
Selling Content

• Building high-quality content
• No more media structure for
• broadcaster
• Joint planning with network operators

Publi cation
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New Process Route for Easy UGC
Free egg creates different routes to create UGC
-gt Various routes to upload UGC
UPLOAD

• Easy to produce and manage VODs
• Provides effective circulating routes
• Provides UGC Studio facilities for
• marketing experiencing space

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Sleeping with the Enemy for D-TV Portal
365 C Open source Digital TV portal
Content Provider
CJ Internet
SKT
Joins.com
Pandora TV
Etc.
(music)
(UCC)
(news, cooking Tips)
(game)
Platform Provider

• Managing Subscribers
• Utilizing Fees

Samsung LG
SKT

• Managing Content

Receiver Provider
Samsung LG Setup Box, Digital TV monitors,
etc Produce Sales
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What weve learned so far.

• Dont fight against the giant portals. Just
  floating with them until you become confident
  enough to run your own community.
• Even though you are not confident in your
  websites competitiveness, aggressively sell your
  site to advertisers mixed with offline space.
  Your strong Brand can help in cross-media ad
  sales.
• Find a niche market to sell your content to
  mobile telcos when they diversify their services,
  but dont expect a big profit from them and only
  use that service to attract users to come and
  visit your website and join your web community.
• Brand power and integrity of the media still is
  a most effective means in digital publishing.

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• Pay more attention to creative services to meet
  diverse interest of users and take advantage of
  new platforms available to tech advance. Above
  all, enjoy yourself with such experiments, then
  they become monetized..
• Content is the King, but the King deserves
  respect only when he can satisfy the demand of
  the People.
• Print/Digital integration is not enough, but
  there should be something else to meet rapid
  change of appetite of users and consumers.
• Finally, dont be hesitant in investing into
  digital..that is not optional and just natural
  part of our ongoing business. That is not giving
  up dollars for cents, someday cents make dollars.

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But, for the moment..
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Paper Magazines Stay Attractive!

• Paper is the physical side of the love
  affair. We hold it in our hand. We feel it
  between our fingers. We hear the sound of it as
  the pages are turned. Whether its words or
  pictures, business or pleasure, paper makes the
  experience personal and intimate.

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Thank you !!!

• Kiljw_at_joongang.co.kr
• Tel [phone]
• Fax [phone]