2. The Most Wired Country
51% of 99% of
3~5 yr olds 6~19 yr olds
Use internet
Source: OECD 2008
3
The Most Wired Country
Mobile internet share is 25%
of the total wireless market
Source: SK Telecom 2009 Source: SK Telecom 2009 Mobile internet
4
2
3. Korean Music Industry
Online share is 80%
of the total music market
(Unit; $ Million)
Music
85
Online
19%
154
35%
Mobile
202
46%
Source: Ministry of Culture & Tourism 2007
5
Who Won the Market?
Mobile phone operators captured the most of the value
While traditional music player got lost
0 005 Pioneered bell tone market
500
Pioneered ring tone market (Unit; $ Million)
400
0 004
300
0 003
53
180 Digital music market
200
0 002
Music market
100
0 001
0
2001 2002 2003 2004 2005 2006
Source: Ministry of Culture & Tourism 2007
6
3
4. The Piracy Market Size
6334 493 4
Piracy market
Legitimate market 42 72 0362
(Unit; $ million)
43 61
6331
073
63
Music Movie Publishing Total
Source: Korean copyright center 2007
7
Online Copyright Violation
Case 1
TV series
8
4
5. One of the Most Popular US TV series
$ 60
+
TV tuner card
9
How they spread out
Convert into
internet-friendly file
Upload
Within a day
Recording alive in the US Internet community
In no time
Online translating
community
“Thank you”
3~4 days
With Korean subtitle
Download
10
5
6. Attributes
Web 2.0
Online
communities
No monetary
incentive
No concerted process
11
Online Copyright Violation
Case 2
Network Game
12
6
7. Network Game Market
North America
$10 billion EUROPE
6%
13%
as of 2009
KOREA
JAPAN
14% 57%
Etc.
10%
China, TAIWAN
Geographical distribution
Source: DFC Intelligence, Online Game Market Forecasts 2006 Source: NCsoft
Source: DFC Intelligence, Online Game Market Forecasts 2006
13
Piracy in Network Games
Game
company
hacking
server Piracy server
cyber money
black market
$ billions
Client PC Client PC
14
7
8. Piracy in Network Games
Legitimate Pirated
www.lineage2.com.cn cnc.tt2free.com
Source: NCsoft
15
Online Copyright Violation
Case 3
Movie
16
8
9. Independent Movie Wonangsori
Widely spread out on Internet
while it is on screen
3 million box office hit
17
Reactions
18
9
10. The Judicature
19
First Criminal Prosecution
“The supreme court sentenced
a music café sysop to
8 month imprisonment
With 2 year probation.”
20
10
11. The Administration
21
The Ministry of Culture
40% budget increase
ey
on
for copyright protection
M
n
tio
Special Copyright Police (08~)
za
ni
Issues monthly watch report
ga
Or
em
st
Copyright violation monitoring system
Sy
ive
nt
Grant ‘Clean Site Mark’ to OSPs
ce
In
22
11
12. The Legislature
23
Revised Copyright Act
3 strikes-out
Online
@ infringement
User account Bulletin board system
Suspension for upto 6 months
24
12
13. Continuing Debate
Will strict regulation help
or
hurt the
contents industry?
25
Lessons
from
Korean Case
26
13
14. Strict Regulation
followed by
Failure in self-regulation
27
Signs of
Hope
28
14
15. Cooperation in Industry
Agreement made May 2009
between the Digital Contents Network Association(48 OSP)
& the Movie Producers Association
Run monitoring centers Member companies
DNA
fingerprinting
system
29
New Business Model for Profit Share
Filtering solution
company
Copyright owner
OSP
Legitimatize pirated motion pictures
by inserting 15 seconds advertisement
30
15
16. Put
Customers
first!
31
How to Expand Legitimate market
Pirated Market Gray area Legitimate market
LOW HIGH
Controllability
Private FTP
Closed internet community
with no commercial orientation
Decentralized P2P
Positive effect Centralized P2P
WOM, Market creation Open webhard service
Other OSPs
Focusing Area
Service quality, Effective pricing strategy, Customer value
Pirated Market Gray area Legitimate market
32
16
