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Digital Media in Japan. Why and how a US start-up entered Japan. Mobile or PC – or Both?. Digital Music in Japan. Digital Music in Japan. How popular is online music?
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Digital Media in Japan Why and how a US start-up entered Japan
Digital 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?
Digital 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
Digital 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 utilitiesin 2008
A 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
Wide 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.)
Launch 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
The doubleTwist Open Media Platform doubleTwist provides seamless movement and enjoyment of media between desktop, devices and friends
Keep What you need to load video to your phone 0円 1000円 1000円 1000円 OR You need a cable or microSD card reader to load videos using doubleTwist
Keep Leave your iPod behind Using your existing phone: 2000円 Buying a new iPod: 17,800円 Use a single device to enjoy your music and video and leave your iPod at home
Keep doubleTwist in action: Play
Keep doubleTwist in action: Sync with simple drag & drop
Keep doubleTwist: Drag and drop videos from YouTube
doubleTwist in action: Premium Content Coming soon
In 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
Keep doubleTwist 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
Keep Exec 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.