Inside Tencent, 2009 Edition
description
Transcript of Inside Tencent, 2009 Edition
Inside Tencent | 2009 Edition
+8 | Plus Eight Star Ltd | 200908
8 Questions amp Answers on the Worldrsquos
Most Successful Online Community
0
10
20
30
40
50
60
70
0 200 400 600 800 1000 1200
ldquoThe Worldrsquos Most Lucrative Social Network
Chinarsquos Tencent Beats $1 Billion Revenue Markrdquo
(March 2009)
ldquoFor Chinese IM Portal Tencent The Money Is In
Micro-Transactionsrdquo (March 2009)
ldquoIt was a trip 5 years ago to China where I met with
Tencent when they were private that led me to
come back and invest into Second Life So one of
the reasons wersquore ahead of the crowd from a digital
item type business model is because we were over
there paying attentionrdquo
-- Bill Gurley General Partner (June 2008)
ldquoTencent Reaches New Heights in Virtual Goods
Salesrdquo (March 2009)
The Times Are A-Changing
Attention Threshold=
1 billion dollars
About Tencent
bull Tencent is Chinarsquos largest Internet company by revenue and profits
bull It is centered around an IM service named QQ It also offers games mobile search etc
bull This QampA based on our ldquoInside Tencentrdquo report highlights some key points of its success
Its IM Service Looks Like That Buthellip
Itrsquos a Blend of Many More Things
Q1What Were Tencentrsquos Revenue in 2008
Over US$1 Billion amp 40 Net Margin
0
10
20
30
40
50
60
70
0 200 400 600 800 1000 1200
Revenue (US$ million)
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
Note Mixi Gree and DeNA are Japanese social networks Both Gree and DeNA are purely mobile
Q2How Much of It Was From Users
90
0
10
20
30
40
50
60
70
0 20 40 60 80 100
Revenue from users
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
US$1 Billion From lt10 Users
147 mln paying mobile users
314 mln paying web users
892 mln registered IM accounts (2008)
298 mln Internet users in China
Avg 3 QQ accounts per Internet user
377 mln are active accounts
Revenue
About 8 of QQrsquos active accounts bring revenue
Q3What is Tencentrsquos Market Valuation
US$26 Billion (August 2009)
bull Tencent is listed in Hong Kong since 2004
bull DeNA Gree and Mixi in Japan are all listed for over 1 billion USD
bull Facebookrsquos valuation varies between US$3 and US$15 billion
Q4How Does Tencent Compare to
Leading Internet Companies in China
Revenue 2008 of Leading Companies
97
370
1047
429 452 468522
439
0
200
400
600
800
1000
1200
Kongzhong Sina Tencent Sohu Net ease Baidu Shanda Alibaba
Web
Portal
Mobile
content
IM Portal +
Games
Online
games
US$ Million
Search
engine
Online
games
Only B2B
e-commerce part
wwwplus8starcom
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
ldquoThe Worldrsquos Most Lucrative Social Network
Chinarsquos Tencent Beats $1 Billion Revenue Markrdquo
(March 2009)
ldquoFor Chinese IM Portal Tencent The Money Is In
Micro-Transactionsrdquo (March 2009)
ldquoIt was a trip 5 years ago to China where I met with
Tencent when they were private that led me to
come back and invest into Second Life So one of
the reasons wersquore ahead of the crowd from a digital
item type business model is because we were over
there paying attentionrdquo
-- Bill Gurley General Partner (June 2008)
ldquoTencent Reaches New Heights in Virtual Goods
Salesrdquo (March 2009)
The Times Are A-Changing
Attention Threshold=
1 billion dollars
About Tencent
bull Tencent is Chinarsquos largest Internet company by revenue and profits
bull It is centered around an IM service named QQ It also offers games mobile search etc
bull This QampA based on our ldquoInside Tencentrdquo report highlights some key points of its success
Its IM Service Looks Like That Buthellip
Itrsquos a Blend of Many More Things
Q1What Were Tencentrsquos Revenue in 2008
Over US$1 Billion amp 40 Net Margin
0
10
20
30
40
50
60
70
0 200 400 600 800 1000 1200
Revenue (US$ million)
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
Note Mixi Gree and DeNA are Japanese social networks Both Gree and DeNA are purely mobile
Q2How Much of It Was From Users
90
0
10
20
30
40
50
60
70
0 20 40 60 80 100
Revenue from users
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
US$1 Billion From lt10 Users
147 mln paying mobile users
314 mln paying web users
892 mln registered IM accounts (2008)
298 mln Internet users in China
Avg 3 QQ accounts per Internet user
377 mln are active accounts
Revenue
About 8 of QQrsquos active accounts bring revenue
Q3What is Tencentrsquos Market Valuation
US$26 Billion (August 2009)
bull Tencent is listed in Hong Kong since 2004
bull DeNA Gree and Mixi in Japan are all listed for over 1 billion USD
bull Facebookrsquos valuation varies between US$3 and US$15 billion
Q4How Does Tencent Compare to
Leading Internet Companies in China
Revenue 2008 of Leading Companies
97
370
1047
429 452 468522
439
0
200
400
600
800
1000
1200
Kongzhong Sina Tencent Sohu Net ease Baidu Shanda Alibaba
Web
Portal
Mobile
content
IM Portal +
Games
Online
games
US$ Million
Search
engine
Online
games
Only B2B
e-commerce part
wwwplus8starcom
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Attention Threshold=
1 billion dollars
About Tencent
bull Tencent is Chinarsquos largest Internet company by revenue and profits
bull It is centered around an IM service named QQ It also offers games mobile search etc
bull This QampA based on our ldquoInside Tencentrdquo report highlights some key points of its success
Its IM Service Looks Like That Buthellip
Itrsquos a Blend of Many More Things
Q1What Were Tencentrsquos Revenue in 2008
Over US$1 Billion amp 40 Net Margin
0
10
20
30
40
50
60
70
0 200 400 600 800 1000 1200
Revenue (US$ million)
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
Note Mixi Gree and DeNA are Japanese social networks Both Gree and DeNA are purely mobile
Q2How Much of It Was From Users
90
0
10
20
30
40
50
60
70
0 20 40 60 80 100
Revenue from users
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
US$1 Billion From lt10 Users
147 mln paying mobile users
314 mln paying web users
892 mln registered IM accounts (2008)
298 mln Internet users in China
Avg 3 QQ accounts per Internet user
377 mln are active accounts
Revenue
About 8 of QQrsquos active accounts bring revenue
Q3What is Tencentrsquos Market Valuation
US$26 Billion (August 2009)
bull Tencent is listed in Hong Kong since 2004
bull DeNA Gree and Mixi in Japan are all listed for over 1 billion USD
bull Facebookrsquos valuation varies between US$3 and US$15 billion
Q4How Does Tencent Compare to
Leading Internet Companies in China
Revenue 2008 of Leading Companies
97
370
1047
429 452 468522
439
0
200
400
600
800
1000
1200
Kongzhong Sina Tencent Sohu Net ease Baidu Shanda Alibaba
Web
Portal
Mobile
content
IM Portal +
Games
Online
games
US$ Million
Search
engine
Online
games
Only B2B
e-commerce part
wwwplus8starcom
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
About Tencent
bull Tencent is Chinarsquos largest Internet company by revenue and profits
bull It is centered around an IM service named QQ It also offers games mobile search etc
bull This QampA based on our ldquoInside Tencentrdquo report highlights some key points of its success
Its IM Service Looks Like That Buthellip
Itrsquos a Blend of Many More Things
Q1What Were Tencentrsquos Revenue in 2008
Over US$1 Billion amp 40 Net Margin
0
10
20
30
40
50
60
70
0 200 400 600 800 1000 1200
Revenue (US$ million)
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
Note Mixi Gree and DeNA are Japanese social networks Both Gree and DeNA are purely mobile
Q2How Much of It Was From Users
90
0
10
20
30
40
50
60
70
0 20 40 60 80 100
Revenue from users
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
US$1 Billion From lt10 Users
147 mln paying mobile users
314 mln paying web users
892 mln registered IM accounts (2008)
298 mln Internet users in China
Avg 3 QQ accounts per Internet user
377 mln are active accounts
Revenue
About 8 of QQrsquos active accounts bring revenue
Q3What is Tencentrsquos Market Valuation
US$26 Billion (August 2009)
bull Tencent is listed in Hong Kong since 2004
bull DeNA Gree and Mixi in Japan are all listed for over 1 billion USD
bull Facebookrsquos valuation varies between US$3 and US$15 billion
Q4How Does Tencent Compare to
Leading Internet Companies in China
Revenue 2008 of Leading Companies
97
370
1047
429 452 468522
439
0
200
400
600
800
1000
1200
Kongzhong Sina Tencent Sohu Net ease Baidu Shanda Alibaba
Web
Portal
Mobile
content
IM Portal +
Games
Online
games
US$ Million
Search
engine
Online
games
Only B2B
e-commerce part
wwwplus8starcom
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Its IM Service Looks Like That Buthellip
Itrsquos a Blend of Many More Things
Q1What Were Tencentrsquos Revenue in 2008
Over US$1 Billion amp 40 Net Margin
0
10
20
30
40
50
60
70
0 200 400 600 800 1000 1200
Revenue (US$ million)
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
Note Mixi Gree and DeNA are Japanese social networks Both Gree and DeNA are purely mobile
Q2How Much of It Was From Users
90
0
10
20
30
40
50
60
70
0 20 40 60 80 100
Revenue from users
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
US$1 Billion From lt10 Users
147 mln paying mobile users
314 mln paying web users
892 mln registered IM accounts (2008)
298 mln Internet users in China
Avg 3 QQ accounts per Internet user
377 mln are active accounts
Revenue
About 8 of QQrsquos active accounts bring revenue
Q3What is Tencentrsquos Market Valuation
US$26 Billion (August 2009)
bull Tencent is listed in Hong Kong since 2004
bull DeNA Gree and Mixi in Japan are all listed for over 1 billion USD
bull Facebookrsquos valuation varies between US$3 and US$15 billion
Q4How Does Tencent Compare to
Leading Internet Companies in China
Revenue 2008 of Leading Companies
97
370
1047
429 452 468522
439
0
200
400
600
800
1000
1200
Kongzhong Sina Tencent Sohu Net ease Baidu Shanda Alibaba
Web
Portal
Mobile
content
IM Portal +
Games
Online
games
US$ Million
Search
engine
Online
games
Only B2B
e-commerce part
wwwplus8starcom
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Itrsquos a Blend of Many More Things
Q1What Were Tencentrsquos Revenue in 2008
Over US$1 Billion amp 40 Net Margin
0
10
20
30
40
50
60
70
0 200 400 600 800 1000 1200
Revenue (US$ million)
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
Note Mixi Gree and DeNA are Japanese social networks Both Gree and DeNA are purely mobile
Q2How Much of It Was From Users
90
0
10
20
30
40
50
60
70
0 20 40 60 80 100
Revenue from users
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
US$1 Billion From lt10 Users
147 mln paying mobile users
314 mln paying web users
892 mln registered IM accounts (2008)
298 mln Internet users in China
Avg 3 QQ accounts per Internet user
377 mln are active accounts
Revenue
About 8 of QQrsquos active accounts bring revenue
Q3What is Tencentrsquos Market Valuation
US$26 Billion (August 2009)
bull Tencent is listed in Hong Kong since 2004
bull DeNA Gree and Mixi in Japan are all listed for over 1 billion USD
bull Facebookrsquos valuation varies between US$3 and US$15 billion
Q4How Does Tencent Compare to
Leading Internet Companies in China
Revenue 2008 of Leading Companies
97
370
1047
429 452 468522
439
0
200
400
600
800
1000
1200
Kongzhong Sina Tencent Sohu Net ease Baidu Shanda Alibaba
Web
Portal
Mobile
content
IM Portal +
Games
Online
games
US$ Million
Search
engine
Online
games
Only B2B
e-commerce part
wwwplus8starcom
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Q1What Were Tencentrsquos Revenue in 2008
Over US$1 Billion amp 40 Net Margin
0
10
20
30
40
50
60
70
0 200 400 600 800 1000 1200
Revenue (US$ million)
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
Note Mixi Gree and DeNA are Japanese social networks Both Gree and DeNA are purely mobile
Q2How Much of It Was From Users
90
0
10
20
30
40
50
60
70
0 20 40 60 80 100
Revenue from users
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
US$1 Billion From lt10 Users
147 mln paying mobile users
314 mln paying web users
892 mln registered IM accounts (2008)
298 mln Internet users in China
Avg 3 QQ accounts per Internet user
377 mln are active accounts
Revenue
About 8 of QQrsquos active accounts bring revenue
Q3What is Tencentrsquos Market Valuation
US$26 Billion (August 2009)
bull Tencent is listed in Hong Kong since 2004
bull DeNA Gree and Mixi in Japan are all listed for over 1 billion USD
bull Facebookrsquos valuation varies between US$3 and US$15 billion
Q4How Does Tencent Compare to
Leading Internet Companies in China
Revenue 2008 of Leading Companies
97
370
1047
429 452 468522
439
0
200
400
600
800
1000
1200
Kongzhong Sina Tencent Sohu Net ease Baidu Shanda Alibaba
Web
Portal
Mobile
content
IM Portal +
Games
Online
games
US$ Million
Search
engine
Online
games
Only B2B
e-commerce part
wwwplus8starcom
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Over US$1 Billion amp 40 Net Margin
0
10
20
30
40
50
60
70
0 200 400 600 800 1000 1200
Revenue (US$ million)
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
Note Mixi Gree and DeNA are Japanese social networks Both Gree and DeNA are purely mobile
Q2How Much of It Was From Users
90
0
10
20
30
40
50
60
70
0 20 40 60 80 100
Revenue from users
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
US$1 Billion From lt10 Users
147 mln paying mobile users
314 mln paying web users
892 mln registered IM accounts (2008)
298 mln Internet users in China
Avg 3 QQ accounts per Internet user
377 mln are active accounts
Revenue
About 8 of QQrsquos active accounts bring revenue
Q3What is Tencentrsquos Market Valuation
US$26 Billion (August 2009)
bull Tencent is listed in Hong Kong since 2004
bull DeNA Gree and Mixi in Japan are all listed for over 1 billion USD
bull Facebookrsquos valuation varies between US$3 and US$15 billion
Q4How Does Tencent Compare to
Leading Internet Companies in China
Revenue 2008 of Leading Companies
97
370
1047
429 452 468522
439
0
200
400
600
800
1000
1200
Kongzhong Sina Tencent Sohu Net ease Baidu Shanda Alibaba
Web
Portal
Mobile
content
IM Portal +
Games
Online
games
US$ Million
Search
engine
Online
games
Only B2B
e-commerce part
wwwplus8starcom
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Q2How Much of It Was From Users
90
0
10
20
30
40
50
60
70
0 20 40 60 80 100
Revenue from users
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
US$1 Billion From lt10 Users
147 mln paying mobile users
314 mln paying web users
892 mln registered IM accounts (2008)
298 mln Internet users in China
Avg 3 QQ accounts per Internet user
377 mln are active accounts
Revenue
About 8 of QQrsquos active accounts bring revenue
Q3What is Tencentrsquos Market Valuation
US$26 Billion (August 2009)
bull Tencent is listed in Hong Kong since 2004
bull DeNA Gree and Mixi in Japan are all listed for over 1 billion USD
bull Facebookrsquos valuation varies between US$3 and US$15 billion
Q4How Does Tencent Compare to
Leading Internet Companies in China
Revenue 2008 of Leading Companies
97
370
1047
429 452 468522
439
0
200
400
600
800
1000
1200
Kongzhong Sina Tencent Sohu Net ease Baidu Shanda Alibaba
Web
Portal
Mobile
content
IM Portal +
Games
Online
games
US$ Million
Search
engine
Online
games
Only B2B
e-commerce part
wwwplus8starcom
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
90
0
10
20
30
40
50
60
70
0 20 40 60 80 100
Revenue from users
Op
era
tin
g P
rofi
t M
arg
in
wwwplus8starcom
US$1 Billion From lt10 Users
147 mln paying mobile users
314 mln paying web users
892 mln registered IM accounts (2008)
298 mln Internet users in China
Avg 3 QQ accounts per Internet user
377 mln are active accounts
Revenue
About 8 of QQrsquos active accounts bring revenue
Q3What is Tencentrsquos Market Valuation
US$26 Billion (August 2009)
bull Tencent is listed in Hong Kong since 2004
bull DeNA Gree and Mixi in Japan are all listed for over 1 billion USD
bull Facebookrsquos valuation varies between US$3 and US$15 billion
Q4How Does Tencent Compare to
Leading Internet Companies in China
Revenue 2008 of Leading Companies
97
370
1047
429 452 468522
439
0
200
400
600
800
1000
1200
Kongzhong Sina Tencent Sohu Net ease Baidu Shanda Alibaba
Web
Portal
Mobile
content
IM Portal +
Games
Online
games
US$ Million
Search
engine
Online
games
Only B2B
e-commerce part
wwwplus8starcom
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
US$1 Billion From lt10 Users
147 mln paying mobile users
314 mln paying web users
892 mln registered IM accounts (2008)
298 mln Internet users in China
Avg 3 QQ accounts per Internet user
377 mln are active accounts
Revenue
About 8 of QQrsquos active accounts bring revenue
Q3What is Tencentrsquos Market Valuation
US$26 Billion (August 2009)
bull Tencent is listed in Hong Kong since 2004
bull DeNA Gree and Mixi in Japan are all listed for over 1 billion USD
bull Facebookrsquos valuation varies between US$3 and US$15 billion
Q4How Does Tencent Compare to
Leading Internet Companies in China
Revenue 2008 of Leading Companies
97
370
1047
429 452 468522
439
0
200
400
600
800
1000
1200
Kongzhong Sina Tencent Sohu Net ease Baidu Shanda Alibaba
Web
Portal
Mobile
content
IM Portal +
Games
Online
games
US$ Million
Search
engine
Online
games
Only B2B
e-commerce part
wwwplus8starcom
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Q3What is Tencentrsquos Market Valuation
US$26 Billion (August 2009)
bull Tencent is listed in Hong Kong since 2004
bull DeNA Gree and Mixi in Japan are all listed for over 1 billion USD
bull Facebookrsquos valuation varies between US$3 and US$15 billion
Q4How Does Tencent Compare to
Leading Internet Companies in China
Revenue 2008 of Leading Companies
97
370
1047
429 452 468522
439
0
200
400
600
800
1000
1200
Kongzhong Sina Tencent Sohu Net ease Baidu Shanda Alibaba
Web
Portal
Mobile
content
IM Portal +
Games
Online
games
US$ Million
Search
engine
Online
games
Only B2B
e-commerce part
wwwplus8starcom
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
US$26 Billion (August 2009)
bull Tencent is listed in Hong Kong since 2004
bull DeNA Gree and Mixi in Japan are all listed for over 1 billion USD
bull Facebookrsquos valuation varies between US$3 and US$15 billion
Q4How Does Tencent Compare to
Leading Internet Companies in China
Revenue 2008 of Leading Companies
97
370
1047
429 452 468522
439
0
200
400
600
800
1000
1200
Kongzhong Sina Tencent Sohu Net ease Baidu Shanda Alibaba
Web
Portal
Mobile
content
IM Portal +
Games
Online
games
US$ Million
Search
engine
Online
games
Only B2B
e-commerce part
wwwplus8starcom
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Q4How Does Tencent Compare to
Leading Internet Companies in China
Revenue 2008 of Leading Companies
97
370
1047
429 452 468522
439
0
200
400
600
800
1000
1200
Kongzhong Sina Tencent Sohu Net ease Baidu Shanda Alibaba
Web
Portal
Mobile
content
IM Portal +
Games
Online
games
US$ Million
Search
engine
Online
games
Only B2B
e-commerce part
wwwplus8starcom
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Revenue 2008 of Leading Companies
97
370
1047
429 452 468522
439
0
200
400
600
800
1000
1200
Kongzhong Sina Tencent Sohu Net ease Baidu Shanda Alibaba
Web
Portal
Mobile
content
IM Portal +
Games
Online
games
US$ Million
Search
engine
Online
games
Only B2B
e-commerce part
wwwplus8starcom
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Q5What Is Tencentrsquos Revenue Split
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Value-Added Services Dominate
bull Year 2008 US$1047 millionndash Internet VAS 719 million
ndash Mobile VAS 205 million
ndash Ads 121 million
ndash Net Profit 412 million (394)
bull 1H2009 US$788 millionndash Internet VAS 594 million
ndash Mobile VAS 133 million
ndash Ads 57 million
ndash Net Profit 330 million (419)
Internet VAS69
Mobile VAS20
Ads11
Internet VAS76
Mobile VAS17
Ads7
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
0
10
20
30
40
50
60
70
80
0 100 200 300 400 500 600
Game Revenue in 2008US$340 million (3 in China)
Note The size of the bubble represents the game revenue
The profit Margin for Tencent game and NetEase is taken as the one of the whole company
wwwplus8starcom
Game Revenue 2008 (mln USD)
Pro
fit
ma
rgin
20
08
(m
ln U
SD
)
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Q6What are Tencentrsquos Key Services
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Most of Internetrsquos Money-Makers
bull Social networking
ndash Instant Messaging
ndash Blogs (200 mln reg)
ndash Social network
ndash ldquoTwitterrdquo service
bull Games
ndash Casual games
ndash MMO
ndash Virtual pet (5 revenue maker for Tencent)
bull Search engine
bull Mobile services
ndash Mobile portal (1)
ndash Mobile client
ndash Mobile browser
bull E-commerce
ndash E-commerce platform
ndash Payment system
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
From IM to Internet GiantInternet services
QQ Pet
Q Zone
QQ Online Storage
QQ Search
QQ Email
Internet Portal
QQ Show
QQ AlbumQQ Games
QQ Membership
QQ MusicQQ Live
QQ Love
QQ Dating
Wireless services
Super QQ QQ Notice
QQ Mobile WAP Mobile
E-commerce services
Tenpay
C2C service
In addition to mass market services QQ activities cover online advertising
IM
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Q7What Kind of Business Models is
Tencent Using
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Leveraging Virtual Currencies
Content-based SMSOnline identities
QQ Show Qzone QQ Pet QQcom
25 G
MMS WAPhellip
QQ Games
Casual MMORPG Search
Fee-based IM
Mobile QQ
Fee-based IM
Premium QQ QQ XingIM Client-end
WVAS
(Wireless value-added service)
IVAS
(Internet value-added service)Advertising
Mobile Voice VAS
IVR+CRBT
Others
Dating e-card e-magazinehellip
Personalization value-added
( Fee-based revenue)
Interactivity
( Traffic-based revenue)
Free services to encourage users to join the community
(QQ IM QQcom WAP portal QQ Grouphellip)
SNS
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Avatar-Related Virtual Goods
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Connecting Games With IM amp SNS
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Q8What Do Experts Think of Tencent
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Could Tencentrsquos Model Work Outside ChinaPretty sure it works
Virtual goods already
started with Playfish
Zynga etc Habbo in
Finland uses the same
avatar modelOlivier GLAUSER
Managing Director
Steamboat Ventures
For sure in Asia and the gap is
not so large with the West
Offer something appealing and
people are always willing to
pay small amounts for it
Western SNS are already
learning but not fully exploiting
the potential
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
It is not new in Asia Korea and
Japan are earlier than QQ The
concept is even more advanced
in mobile than in Internet Ring
Back Tone (RBT) can be
regarded as a precursor for the
avatar on Internet as the
fundamental is the same self-
expression
Yong LV
Investment Director
SK Telecom China
Yes people need
differentiation and self-
expression It is the
same in China and the
West
Jim LEE
General Manager
EA Mobile
The idea comes from
Korea so not entirely
Chinese And yes I
believe it will spread
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Other Experts Interviewed In our Research
Leo WANG
Founder
Mobile 20 Forum
Jim LEE
General Manager
EA Mobile
Gang WANG
Vice President
Sina
Xing WANG
Founder
Xiaonei Hainei Fanfou
Brian RU
Senior Analyst
Matrix Partners
Zili REN
Founder
Appleap
Project Manager
China Mobile
Olivier GLAUSER
Managing Director
Steamboat Ventures
Gang LU
Founder
Mobinode
Yong LV
Investment Director
SK Telecom China
Leon HUANG
Product Manager
Jiapucom
Former Project Manager
Tencent
Catherine CHAN
IR General Manager
Tencent
Kaiser KUO
Digital Strategy Director
Ogilvy China
Tangos CHAN
Editor
China Web 20 Review
Alex LIANG
CEO
Picacom
Dr Song LI
CEO
Digu Zhenai
Buddy YE
CEO
Wangyou Media
Wayne SHIONG
Partner
WI Harper
2008
2009
Dirk HE
Senior Manager
Huawei
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
+8Wish to Know More
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
Get The Full Report
bull Complete report
ndash Company-wide license | US$5000
ndash PDF 284 pages
ndash infoplus8starcom
bull Not sure yet Check the free sample
ndash wwwplus8starcom
bull Selection of clients of the 2008 edition
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
About Us
bull Innovation Arbitrage
ndash +8 | Plus Eight Star is the leading cross-marketconsultancy on web amp mobile in China Japan and Korea
There are more ideas
outside of your country
than inside
Tom KelleyAuthor The Art of Innovation
bull Our clients
ndash We work with large companies SMEs investment firms and governments worldwide to bring them strategic advice and the best practices from advanced Asian markets
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts
wwwplus8starcom
infoplus8starcom
httptwittercomplus8star
wwwslidesharenetplus8star
+81 | Japan
+82 | Korea
+86 | China
Telecom amp Internet
+ Added Value
High quality
Contacts