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 ?