Headquater : 4F Pyunhwa bld. 166-1 SamsungDong, GangnamGu, Seoul, South Korea Tel : +82-2-564-0744 / Fax: +82-53-326-0745 Lab : 5F Mobile Techno Bldg., 573-13 BokhyungDong, BukGu, Daegu, South Korea Tel) +82-53-326-0744 / Fax: +82-53-326-0745 The next generation multimedia sales system which is able to sell demaded contents by clients not through PC but through the kiosk of the vending machine type easily. 2009. 5 Agenda Introduction Market Trend Necessity of Business Business Outline Business Strategy Product Outline Major Business Model Characteristics of Product Business Plan Intellectual Property Service Expansion Strategy Product and Service Roadmap Reference : Overseas Case Contacts 2 Introduction : Organization Chart CEO Strategy Marketing Administration Planning Group TouchDown Group BROWSER Group DRM Group Research Institute Administrion Support Team TouchDown Team WEB Browser Team OMA DRM Team Service Development Team GVM Team Web Runtime Platform Tea,m BCAST Team Prior Technology Research Team Company Address Main Business No. of Employee MOBILUS CO., LTD. CEO Cho, Byung-Ho Date of Establishme nt January, 2005 (July, 2000) Software Development (Browser and DRM) Capital 2 million won 50 in total (2 Doctor’s degree, 10 Master’s Degree) Main Products Seoul : PyungHwa bld. 4th floor, 166-1, Samseong-dong, Gangnam-gu, Seoul Daegu : Mobile Techno bld. 5th floor, 573-3, Bokhyun-dong, Buk-gu, Daegu 3 TouchDownTM, Mobile Full Browser & Widget, OMA DRM Server & Client, WMDRM-PD, Internet Service Solution Introduction : Technical Capacity Service Supplier of Contents Vending Machine for Multimedia (expected due : 09.09) Contents Vending Machine Service for various multimedia such as music and movies Ensured marketing networks such as Korail and Shinsegae I&C Prior Occupation of newly emerging market by sharing ETRI technology patent Leading Company of Latest technology of Browser Solution Possesses Browser Solution using WebKit browser engine Possesses Web Runtime Platform Solution based on WebKit Applied Netfront browser to SAMSUNG GSM terminals Maintain and repair TSS, Netfront browser applied models Possesses unique experience of self browser development Possesses unique User Interface Technology Movie Drama Music Video AD WebKit adopted Browser Leading Company of Latest technology of DRM Solution Possess all tech. from OMA DRM v1.0 to v2.1 Provides the tech to SAMSUNG Handset Platform through license contract Completed compatibility test with DRM Server of Vodafone and Core Media MOBILUS MUSICAL Browser ANDROID Nokia S60 iPhone MOBILUS’s MUSICAL DRM applied models (OMA DRM 2.1) Discovering International Market and Promoting New business Efficiently adopt to new tech. through OMA standardization Participated in 3GSMA Mobile World Congress 2009 Participated in CTIA Wireless 2008 Discovering new tech. for technical changes of Web 2.0 and mobile terminals SGH-760v SGH-I400v 4 SGH-ZV60 SGH-J200 SGH-F700v Market Trend: Digital Contents Distribution Market Scale Contents trade and distribution market is expected to reach the scale of 2.5 zillion won through over 10% growth annually. 26,589 23,882 35,000 30,000 17,945 16,226 19,772 17,214 15,417 25,000 20,541 32,997 30,978 28,745 25,012 23,124 24,082 21,887 24,595 20,567 16,867 13,698 11,314 20,000 11,442 10,188 8,890 13,379 12,592 Game 15,000 7,930 7,128 10,000 3,294 5,000 0 2006년 2,445 552 2007년 Contents trade and intermediation 8,773 Solution 8,971 Digital Broadcasts 3,559 Information Contents 3,848 2,471 473 8,518 3,983 2,613 2,945 503 2008년 522 2009년 5 Information Contents 4,046 Digital Music 3,404 Digital Image 536 2010년 E-book Market Trend: Market Scales according to Distributing Media Actual digital contents distributing media shows that the scale of the off-line media is 50% of that of the online media, which concludes off-line media hold a great deal of importance compared to other contents market scales. Capacity of success of new off-line distributing media 25,000 20,000 15,000 11,557 10,000 6,388 5,000 0 6 Market Trend: Characteristic of Digital Contents Media Usage Considering that users usually use MP3 player, cellular phones and PMPs as the contents playing terminals, search for new business model is vital to reduce the inconvenience of purchasing and using contents and hence increase the usability. Terminals for Digital Contents Usage 7 Necessity of Business: Problems of Contents Distribution through Mobile Terminals When buying contents using mobile terminals, users need to pay for data call fee, which is higher than the cost of the contents. This is the reason for why users try to avoid buying contents through their mobile terminals. NO Charge SKT (23.2%) KTF (15.2) LGT (9.4) 8 for Data Usage Business Outline: Supplying New Contents Distribution Channel Automatic Contents Providing Service for fast and east downloads of desired drama and broadcasts to cellular phones and laptops which could be provided to the customers any where such as streets, shops and airport, at any time. 1 2 At airport, before going on his business trip, Mr. Kim downloaded episode 21 of “Sejong, the great king’ from contents providing machine to his laptop and watched it during the flight. He was enjoying it so much that he didn’t even realize time flying. Mr. Lee’s family went on a picnic on a weekend. Their way back home was full of traffic jam and his children were getting bored. He decided to download episode 3 of “Pororo” from the automatic contents providing machine to the navigation terminal at near resting place and play them for his children. Despite high number of multimedia terminal owners such as cellular phones, PMPs and game consoles, methods to obtain contents are limited, and furthermore, mobile contents are provided only by communication companies, causing closed market structure, resulting necessity of new solutions New Contents Distribution Channel 9 Business Strategy: Focusing on Activation of Contents Distribution In order to activate contents distribution, various contents need to be available and widely distributed through various distributing channels, based on new service system. Reliable supply of new service system by MOBILUS. Metro Corp. Shinsegae I&C Various Contents Easy Payment Processor User Interface Various Terminal Supply Movies Music Edu. E-book DRM Image Converter Operation Kiosk Manage- System ment New Service System 10 Patent Korail Various Distribution Channel …… Main Business Model : Contents Distribution Direct sales of music, movies, broadcasting contents, music videos, education(e-learning), e-books and many more Movie, TV Contents E-book Newspaper Comic 11 Music Video UCC 11 Advertisement Business Plan 2009. 2. 16 MOU of ETRI and Shinsegae I&C Transfer of technology between ETRI-Shinsegae I&C and ETRI-Korail is due in mid May, 2009 Attempts to preoccupy newly emerging market of various business Terminal andServer System Supply 12 Business Plan: Contents Service by Business Contents Outsourcing by companies service business through cooperation with contents providing service Main Business: Korail(Distribution), Shinsegae I&C, Metropolitan Rapid Transit Corporation Maintain service compatibility by cooperating with preexisting service business and allow sole contents sourcing by forming Open Market or Customizing Market Music MP3 : Music Portal(Bugs, Melon) and music possessing sites such as Soribada Phone Bell : Provided by SVC Moving Picture Drama, News : Cooperation with Broadcasts(iMBC, SBSi ) Movie : Movie site owners Image Cooperation with communication companies with rights Game Cooperation with Communication company or Well known game developing company Cooperation with Game Publishing business Cooperation of bundling products with KT(Mega TV) and Hanaro Communication(Hanaro TV) 13 Service Expansion Strategy Phase 1 : Specific Target Location Metro Corporation: Specific location(subway station) and its neighboring location Korail(Distribution): Cooperation marketing according to specific location(airport, rail) Ebridge Co. Ltd. (airport), Korail(rail and subway), Phoenix Vending(nationwide) Shinsegae I&C : Distributor targeted cooperation marketing Able to run simultaneously with PMP rental business Seoul Metro 243 Airport 15 Rail Station 406 14 Expressway Resting Place 119 Service Expansion Strategy Phase 2 : Contents Distributor Cooperation with communication and online service companies that contemporarily provide contents service Development of bundling goods with terminal possessing company(comm. Companies) and wired comm. business(CATV, IPTV business) Phase 3 : Recruiting Branches Local position securing marketing for service market expansion established based on step 1 and 2. Main Sales Locations : School, Academy, Coffee shop, Salon etc. 7200 24hr Convenient Stores(2003) 232 Starbucks, 116 Coffee Beans, 500 Dunkin Donuts (2007,12) 15 175 Universities Product Outline: User Centered TouchDownTM System Various fees are not necessary unlike registration fees and usage cost of existing mobile service and the contents are easy and convenient to use – it can be used anywhere at any time just like purchasing a canned drink Contents Search Contents Selection Target Device Selection Any Contents Downloading Playable in various mobile players Automatic Contents Providing Machine 16 Payment for Contents Characteristics of Product : Usability considered Kiosk System Provides easy-to-use system to provide successful service to customers Various Inputs and Outputs(Wire, Wireless) and Payment Interface (T-money, Cellular Phone Payment, Credit Card) Bluetooth USB Cellular 24 PIN Mini 5pin USB I-pod/touch USB Herb Serial USB SD Card Mini SD Card 17 MSR Reader RF Reader Characteristics of Product : DRM Solution for Contents Protection Appropriate DRM Solution is applied depending on the device and perfectly secure the contents Application of MOBILUS’s sole DRM Solution and common DRM Solution PMP Phone TransCoder: Mobilus Chameleon DRM Packager: T-Sync Module Tech. Cooperation TransCoder: Mobilus Chameleon DRM Packager: Provide same service as PC TransCoder : Mobilus Chameleon DRM Packager : -SKT : MelonDRM Module Tech. -KTF : DosirakDRM Module Tech. -LGT : MUSIC onDRM Module Tech. PDA etc 18 Intellectul Property: Technical Improvements through I.P. Secure stable business based on business and technology patents Secure stable business based on business and technology patents Registered Patent : Customized Contents Supply and related Equipments based on terminal information CI related approach (10-0779089), Electronics and Telecommunications Research Institute Registered Patent : Moving Picture Converting System and its Method using publicized API (10-0781310), MOBILUS Patent Pending: Moving picture converting system (Chameleon) related approach DRM related approach DRM Contents Playing Device and its Method (10-2007-0082948), MOBILUS Patent Pending: User Interface Management System and Method for Wired and Wireless Information Device and Wired and Wireless Information Device possessing User Interface Management Function CI UI Management and Operation related approach (10-2007-0084819), MOBILUS New Patent, Utiliy Model Patent, Trademark : Accumulation of Know-How on Intellectual Property and Operation/Management 19 Various Designs 20 Product and Service Roadmap 2009 3Q: Development of TouchDownTM for digital contents and wired kiosk 2009 4Q: Development of GVM(game vending machine) for digital games and wireless kiosk 2010 Development of contents platform for mobile devices to activate integrated kiosk and wireless service and independent execution of contents service Service Infrastructure Expulsion 3 2 Digital GVM GVM Terminal Kiosk + Docking Station 1 Integrated TouchDownTM Kiosk + wireless AP + Contents Launcher Contents Platform Advertisement, Independent Service Operation Digital TouchDownTM Wired Kiosk 2009. 2Q 2009. 4Q 21 : 2010 Reference: Overseas Case Media Distribution Kiosk for Apple i-Pod -Recognized the importance of off-line in distributing contents -Shows Apple’s courage to take the initiative of off-line service Media distribution kiosk : It is installed in many public places. The system allows i-pod users to download various music, moving pictures and applications from i-tunes and app-store without using PC. Patent pending in USA intellectual property office. Virtual connector for interfacing : It is the interface technology to connect i-Pod to media kiosk system that allows downloading contents by connecting wirelessly, using close-range connecting communication technology such Wi-Fi and Bluetooth. 22 Reference: Overseas Case SonyEricsson Playnow Instant Entertainment 24/7 - Service provided in 80 branches in Asia such as Indonesia, Malaysia and Singapore by SonyEricsson - By paying fixed price, people using SonyEricsson cell phones can easily download latest DRM-free music, movies and TV dramas. - No additional communication fee is needed and download can be executed easily by connecting to kiosk equipment - Brand ‘PoP’, Sony and Universal jointly developed vending machine with the brand called ‘PoP’. The vending machine that sells music, moving pictures and games - DVD, Blu-ray Disk, PS3 GAME download. - MP3 and MP4 download using SD merory card. 23 Contacts Headquarter Research Institute PyungHwa bld. 4th floor, 166-1,Samseong-dong, Gangnam-gu, Seoul (Across Trad Club) Tel : 02) 564-0744 Mobile Techno bld. 5th floor, 573-3, Bokhyun-dong, Buk-gu, Daegu Tel : 053) 326-0744 / Fax: 053) 326-0745 Related Inquiries Park, Moon-Keun, Director (010-2778-6904) E-mail : jmchae@mobilus.co.kr Bae, Jae-Hyung, Vice Director (010-9328-3958) E-mail : bezant@mobilus.co.kr Kim, Don-Hwan, Section Chief (010-9940-7007) E-mail : paerang@mobilus.co.kr 24