Digital Media in Japan
Why and how a US start-up entered Japan
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2Mobile or PC – or Both?
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3Digital Music in Japan
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4Digital Music in Japan
How popular is online music?– Nearly 40% of online population in Japan visited an entertainment
music site in Aug. 2008 – 21.9 million out of 57.4 million online users– 1 out of 4 broadband users use iTunes software - 13.6 million iTunes
users in Japan• That’s a higher penetration than in the US, UK, France or Germany and
more than twice the global average penetration– Yet iTunes music is relatively unpopular– Japan Record Association states that for first half of 2008: 20 million
paid Internet downloads vs. 220 million paid mobile downloads (US $800 million for all of 2008)
– Also estimates US$1.4 billion of illegal mobile downloads in 2008
What are all these PC users doing?
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5Digital Music in Japan
Answer: ripping CDs!– Users pay something to try music and then buy what they like– Tsutaya is a major retailer of music in Japan, so “try before you buy”
does work– Sales of physical music (not online) in Japan exceeded sales in the US
in 2008, despite being more expensive
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6Digital Video in Japan
Online video content is extremely popular in Japan– YouTube is by far the most popular entertainment site with over 21
million users (35% of total Internet users)– Niki Niko Doga, with 11 million users, has the longest average time per
spent month (193 mn, compared with YouTube’s 187 mn; US YouTube data is 134 mn/month)
The potential for video on phones is strong – Most new phones are designed for viewing digital TV– Both YouTube and Niko Niko Doga have mobile video but it suffers
from low quality
Japan mobile data & media are expensive– Average price of a mobile song is approximately $4– Highest wireless data ARPU in the world– Strong user demand for video sync: 2 million downloads of video sync
utilities in 2008
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7A Perfect Fit
doubleTwist makes transferring media to phones effortless– iTunes-like experience for music, video and photos for many devices
Paid content on the PC can be grown via mobile – Paid Internet downloads could easily grow by 10 X just to equal paid
mobile downloads– Piracy in mobile downloads is a massive and growing problem
doubleTwist bridges PC and mobile media– Nearly 40% of online population in Japan visited an entertainment
music site in Aug. 2008 – 21.9 million out of 57.4 million online users– 13.6 million iTunes users in Japan– doubleTwist provides access to more than half the mobile phones in
Japan from the PC– doubleTwist’s PC/mobile overlap for digital media could be 10-20
million users– There is a lot of free content on the PC that can be enjoyed on mobile
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8Wide Footprint of Supported Devices
Nearly all (80+) DoCoMo phones from the past two years– Video support is consistent and universal– Music support is excellent through MTP connection mode– Roughly half the mobile market in Japan or 40 million users
60+ phones on KDDI au – Roughly half of KDDI devices are supported for video and music– au accounts for 25% of the mobile market
20+ phones on SoftBank – Music support– iPhone support
Other devices– Game (Sony PSP, Nintendo DSi), MP3 player (iPod, etc.)
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9Launch Plan
Consumer launch: July 09– Early preview meetings with key journalists the
week of July 6th– doubleTwist Japan media list covers 150 editorial
contacts from a wide range of consumer-oriented publications
– Press conference with 25 journalists– Several press interviews are planned for in-depth
coverage– Dead simple message: Load video to your phone– iTunes & Music sync to be presented as secondary
messages
Key distribution sites– Windows Forest: the top free software site– Windows Forest reported 2 million downloads of
video transfer utilities in 2008
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10The doubleTwist Open Media Platform
doubleTwist provides seamless movement and enjoyment of media between desktop, devices and friends
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11What you need to load video to your phone
Keep
You need a cable or microSD card reader to load videos using doubleTwist
1000 円
1000 円 OR
0 円
1000 円
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12Leave your iPod behind
Keep
Use a single device to enjoy your music and video andleave your iPod at home
Buying a new iPod:17,800 円
Using your existing phone:2000 円
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13doubleTwist in action: Play
Keep
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14doubleTwist in action: Sync with simple drag & drop
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15doubleTwist: Drag and drop videos from YouTube
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16doubleTwist in action: Premium Content
Coming soon
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17In Summary
Bridging between the PC and mobile devices is an undeveloped area
The media ecosystem in Japan is unique but full of opportunity
A note on DRM– DRM for audio is going away in the US– DRM in Japan is still firmly entrenched– doubleTwist leaves DRM alone and is looking for better solutions
Popular use of video on phones is still undeveloped
An experience that rivals iTunes experience is now available for many devices, including more than half of all Japanese phones
doubleTwist CONFIDENTIAL
18doubleTwist history
• Founded in Norway mid ‘07; headquartered in San Francisco
• $2.5 million Series A round mid ‘07 by Index Ventures (Skype, Last.fm) and Northzone ventures
• $5 million Series B round in late ’08 by Li Ka-shing, Solina Chau, Michael Ovitz and Alex Zubillaga
• 02/09: doubleTwist Mac beta released – enthusiastic reception by the Mac community
• 04/09: doubleTwist PC beta release – major press coverage
• Company has been covered by the BBC, WSJ, Guardian, Techcrunch, Sydney Morning Herald, CNET and dozens of other publications and tech blogs
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19Exec bios – CEO, CTO
Monique Farantzos is the co-founder and CEO of doubleTwist. Prior to doubleTwist, she was the Managing Director of DoubleTwist Ventures, a DRM interoperability company that advised Fortune 500 companies on DRM technologies. She has also been a consultant for Intellectual Ventures, one of the largest IP holding companies in the world. Ms Farantzos has been a Director at the Miller Porter Group, a consulting firm focused on the Life Sciences and Biotechnology industries. Ms Farantzos holds an MS in Applied Science with emphasis on Bioengineering from UC Davis and worked as a Physicist at the Lawrence Livermore National Laboratory.
Jon Lech Johansen is doubleTwist's CTO and responsible for all technology and architecture decisions. His background is in digital media interoperability, having worked on making proprietary systems such as DVD CSS interoperable with any device. Prior to co-founding doubleTwist, Jon worked for DoubleTwist Ventures and MP3Tunes, a digital music startup in San Diego. He is a self-taught software engineer whose passion is making technology accessible to ordinary users through polished and intuitive user interfaces. Jon received the EFF Pioneer Award in 2002 and was profiled on the front page of the Wall Street Journal at the age of 21.
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