Ookbee at bangkok entrepreneurs jan 2013

Bangkok Entrepreneurs MeetUp Jan 2013

Tuesday, 22 January 13

Hi Everyone!

I’m Moo from OOKBEE

Agenda1. Ookbee2. AppStore Publishing3. Next Step/Regional Expansion4. What I’ve learned


+Who’s OOKBEE?

Provider of complete e-Publication platform

• Provide platforms for “Publishers” to sell products to “end-users” to purchase and read e-books/e-magazines

• Convert and distribute e-books/e-magazines for publishers and content owners

• Operate our own bookstores (i.e. AIS Bookstore, B2S Bookstore)

Customers (Users) Publishers/Content Owners

B2B2C e-commerce of e-books


+Ookbee by the Numbers

Thailand’s #1 e-book store 88% market share

TOP 5 Grossing Appson Thai App Store

* That was in October. with new countries/iPad mini,We now add 8K+ a day and have 2.9M users

everydayfor the past 500 days


Content Team

Developers

• Founded: Mid 2010 as a department in my another company. IT WORKS (Spin-off: Mar 2012 as a separated company)

• The team has grown from 5 to over 40 staff• We are at Month 25 and have been profitable since month 7

Ookbee Team


+ Last Round

Developers

• Sep 2012 Ookbee raised US$2 million in funding from Shin Corporation (INTOUCH) • We have been exploring opportunities outside of Thailand since then


Mobile Platforms

Support iOS, Android and Windows 8 (PC/Tablet/Phone)

Support “In-app Purchase” and “Subscription”

Link with website for purchasing via credit cards and other payment options

Support both PDF (with Interactive) and e-pub format

a “Buy-once Read Anywhere” experience

iPhone/iPod Android Tablet (ex. Galaxy Tab)

Android Phone (ex. Galaxy S)iPad Windows 8 Tablet and Phone

(Surface) launched with MS Nov 2012


Ookbee Ad for Microsoft Windows Azure : May 2012Tuesday, 22 January 13

+AIS Bookstore First TV Ad back in 2011


+AIS Bookstore / Samsung Galaxy S3 June 2012


+ Steve Jobs Book Ad on BTS: Dec 2011


+Lifestyle Ad : Sep 2012


Free SampleFree Magazine Bundle Package with Telco

Free Magazine and Newspaper Bundle

Valued 800 USD(Usually Valued equals to

the device itself)

We bundled over US$15M worth of

publications in 2012


+#1 Digital Bookstores

Out of 200K Apps, We are No.1-‐5 Top Grossing for the past

500 Days!!Beats Zinio and all popular

games! Angry Bird?

50+ of our 150+ apps on Top list!


+Ookbee User and Application Download Trends

* It took Kobo 2 years to reach 5M users (Globally) before Rakuten acquired it for $315 Million in Dec 2011** Ookbee 2.9M users in 2 years is only in Thailand and SEA (Locally) / Our penetration rate is way higher

0.00#0.25#0.50#0.75#1.00#1.25#1.50#1.75#2.00#2.25#2.50#2.75#3.00#3.25#3.50#

Jan,11

#

Feb,11#

Mar,11#

Apr,11#

May,11#

Jun,11#

Jul,1

1#

Aug,11#

Sep,11#

Oct,11#

Nov,11#

Dec,11

#

Jan,12

#

Feb,12#

Mar,12#

Apr,12#

May,12#

Jun,12#

Jul,1

2#

Aug,12#

Sep,12#

Oct,12#

Millions'

AccumulaAve#users# AccumulaAve#app#download#

* That was in Sep 2012. We now have 2.9M users and double to

Almost 8,000 new users per day.The 3rd Million will took us

only 4 months


+Ookbee Thai Market Shares and Contracts on-hand

Thailand

200+ Active Publishers in Thailand

90% of Magazine contracts are exclusive

Vietnam

30+ Active Publishers

Malaysia

2 Biggest Publishers in ( each covers more than 60% market shares in their language Bahasa/Chinese)

Singapore

SPH signed. 31 magazine titles will be launched in Feb 13, 45 by Mar 13 and over 100 within this year

Thai Market ShareNumber of App Downloads

Contracts on-hand

By Feb 2013, this piece will be smaller

than 10%


Web Store


+In-App Purchase

Apple Credit Card (online) or Cash at 7-11

Pay with Mobile phone bill (Pre-paid and Post-Paid)


+Back Office / Publisher Reports

Back Office(Uploading new books/se6ng price etc.)

Publisher Report / AnalyAcs(for publishers to check sales/stat)


Supporting File Formats

PDF

PDF + Interactive ( Video / Effects)

E-Pub

Proprietary DRM

Books can be read only within our application / All files are encrypted locally

DRM check with server every time user connects

new books are added automatically

books without purchasing history will be removed automatically

Digital ConversionOOKBEE Publisher is available for free for all publishers


App Store Publishing


Number of Apps

iPhone

Play

iPad

AmazonWP

BlackBerry


Relevance of Stores VS Category


Local VS Global

• Local / Regional ...ex. Local language (Ookbee), Local content ( TV, Music, news), Local Deals/Promotions- Smaller market/Easier to gain local attention/In many cases you do better than global player because you know the market

• EX. Russian Market: Only 4% of all apps in the Apple App Store for iPhone are available in Russian, however, 70% of the revenue from the 200 top grossing apps is generated by apps that are translated into Russian.

• Global App .. Much larger market. Much more competitors...


Local..Local..Local..

10% local apps generate more than 50% Revenue


+Thailand: Monetization Case Study

Sep 2012: App Annie

Thai UI


The overlap proportion of the top applications of the United States with other English speaking countries (Canada, Australia and the UK) is significantly higher than it is with non-English speaking countries.

My Guess is Thailand is somewhere here!

maybe 15%


Launching App in South-east Asia?

It’s now or never!


Top Countries

Thailand is among the global top 10

Mobile apps markets (the only in SEA, only after China,

Japan and S. Korea in Asia)

Based on App Annie Worldwide Total Category, Q3 2012

Why we are growing so

fast?The market

itself is growing


Fastest Revenue Growth Countries - All Categories(Jan-Sep 12)

Growth is higher since the base is smaller.....Here we are

at #3!!Hooray!!

Here too! #9

Based on App Annie, Top 25 Grossing countries of 2012 Sep, comparing Jan-Sep Growth rate


Fastest Revenue Growth countries for Games

Based on App Annie, Game Category, comparing Jan-June 12 Growth rate

Fastest Revenue Growth in

the world

#2 on Google Play


Fastest Download Growth Countries for Games

Based on App Annie, Game Category, comparing Jan-June 12 Growth rate

For Both iOS and Google Play,

4 out of 5 Fastest Revenue Growth Countries

are in SEA


Thai App Store VS The World

• Based on numbers given by Distimo, roughly 25,000 downloads in a day will get you into the US top 50 Overall Free Charts, and about 80,000 will get you into the top 10. Huge numbers.

• in Japan, it’s 20,000 a day to be in Top 10 and 60,000 a day to be at #1 Top Free Charts

• in Thailand, from my personal experience, it’s only take 10,000 a day to be #1 in Top Free already


http://www.distimo.com/

http://www.distimo.com/

http://www.insidemobileapps.com/2011/12/12/distimo-reveals-downloads-top-ranked-free-app-ios/






Successful Publishing

it will take Ookbee 4 Months for our next 1 Million

Everybody remembers the success stories of applications that gathered millions of users within a couple of days.

Draw Something did it in nine days. However, with the right strategy it is possible to gain one million users much faster. Naver, one of the most successful Asian publishers, launched five applications at the end of November, all of which quickly became the most popular applications in many Asian countries. Line Pop, the most popular of those five, generated 1.75 million downloads within the first three days of its launch. Moreover, Line Pop also generated one million in estimated revenue within the first 12 days. (Line has over 80M users worldwide and over 10M users in Thailand)


Launching App in the Local MarketMy Personal Experience


Thai Market - Real NumberLet’s see what’s like when you launch an app

specifically for Thai market only

• just another app in App Store

• my Good App

• my Very Good App

Just Another App


Max around 500 downloads/day when launch..

then average around 50 per app per day

Total just around 36K download in 24 months

From almost 150 Apps, we have around 120 “Just-Another-App”

Just Another App in App Store :(

*Still 36K x 120 = 4.32 M, even if same user download several apps, I expected we have generated over a million users from

these just another apps Tuesday, 22 January 13

My Good App :)

Max around 900 downloads/day when launch..

then average around 120 per app per day

Total around 90K download in 24 months

From almost 150 Apps, we have around 25

“Good App”


My Very Good App :)

Max around 6,000 downloads/day when launch..

then average around 2,000 per app per day

Total around 1.5M download in 24 months

From almost 150 Apps, we have 2

“Very Good App”

*My Number was started back in 2011. I expect that it would be 15,000 per day easily first day when launched

now for a very good app.Tuesday, 22 January 13

Let’s make some money!App Monetization


App Monetization

• Paid App Simple game ex. Angry Bird?

• In-App Purchase (ex. Social Game/Content - ex. HayDay, Poker) * Ookbee is here

• Apple/Google

• Mobile

• Other ( Ex. In our case Credit Card/ Cash via 7-11)

• Advertisement (Simple Game/ TV-Radio Streaming/News)


In-App Purchase


+Other Payment Channel Options in Thailand

Apple Credit Card (online) or Cash at 7-11

Pay with Mobile phone bill (Pre-paid and Post-Paid)


Ad Revenue

• Free App Ad Revenue simulation.

• Impression : 1,000,000

• CTR 1%

• CPC 4 THB

• Ad revenue: 40,000 THB

• How long to get 1M impression? A very good app maybe several days. Good App maybe a month. Just another app maybe 6-12 months.


Exactly! How Much Money Can I Make?

(in Thailand and the rest of the world)


How big is the whole market?

All markets combined as of Nov 201215M USD a day for iOS

3.5M USD a day for Google Play

Since October 2012, Japan Google play Revenue Top USTuesday, 22 January 13

US Market

• If you make it to the top 10 US Top Grossing Apps : around 2M THB per day

• How do we know?

• Temple run has reportedly earned $7,000,000 over a span of 5 months, so that roughly brings the average to $46,000 (1.4M THB/Day) per day near the #1 grossing spot

• Chair Entertainment, the subsidiary of Epic that developed Infinity Blade confirmed that the game had had 5 million downloads and generated $20 million in net revenue. Apple said Infinity Blade is ranked #9 on the US top grossing list for the whole of 2011. So we can estimate that around 1.6M THB/day revenue is made in the Top 10 US Appstore

• In 2012 the average iOS revenue grow at least another 50%


http://uk.wireless.ign.com/articles/119/1197924p1.html

http://uk.wireless.ign.com/articles/119/1197924p1.html

Slide from Samurai International Japan

Japanese MarketGame Publishers like DeNA and GREE each have over a hundred of apps on each

store (many on the top list)

Game publishers are the most effective monetizers. Not only in Japan but throughout the world. It’ll be no surprise to industry insiders that 9 of the top 10 publishers by monthly revenues on iOS and Google Play are game publishers. In fact, the only exceptions to that rule are Apple on iOS and NAVER on Google Play (Maker of popular social networking app LINE).


In terms of revenue of Top Grossing App:

As of Jan 2013: iOS in-app Purchase

Top 1st -5th apps “each” gets 150K-300K THB per day.(We have 2 on the list)

The number are growing from

75K - 150K per day same period last year.

How do we know? Been there done that..still there. From my source, the number are almost the same for both iPad/iPhone

Thai Market

Our two best apps at #1 and #4


Apple 84%

Android 16%

YTD12

Apple 85%

Android 15%

FY11

Our Revenue: Apple VS Android


+The Long(er) Tail of Ookbee

Charts explaing that more items (Tails can be added)

More Niche Products can be added here

More Best Sellershere

Here are “Self-‐

Publishing”And more

• Now 20% top contents generates 80% downloads

• Will

• Add more niche products

• Self-Publishing system


Going Regional? - (or better Global)

let’s do some SWATfor Ookbee


Strength• First-mover advantage

the first one who launch this services in Thailand

• Internal Developer teamQuick development/release/bug fixed -- Cost saving

• In-House Publishing tools and DRMCustomizable, Cost saving. Pass this savings to our publishers.

• Using PDF + proprietary interactive is proven to be easier to penetrate SE Asian market

• The business model has the advantage of increasing revenues without incurring highly direct costs.

• We are Cash flow positive


Opportunities

• Market growth -- the number of users should grow rapidly over the next several years , expecting 5-10 times more during the next 5 years in Thailand alone and 30-50 times more regionally

• Other sources of income -- Advertising revenue / New services to same user-base (we are launching Ookbee Live News aggregator services next month), Audio Books, Movie streaming

• Regional growth

• We are creating (non-english speaking) e-book Library in SE Asian countries. For global player to come in the market they can choose to acquire us or start building this again one more time by themselves.


Weakness

• Challenges expanding regionally. Not in terms of technology but more one office setting up, management, recruiting etc. I realize that we probably need to partner up with Global/Regional players to speed things up or we may lose opportunities to be a leader in many markets.

• Need to buildup Global Brand: Relatively new name in the market -- people tend to know Ookbee later than the books / product brand. That's changing but maybe not fast enough if Global brand come in these markets.

• Can not recruit new talent programmers fast enough -- many opportunities have to be postpone due to this problem

• Marketing and Strategic planning can be improved


Competitors

• Global/Regional/Local Players ( Kindle, Kobo, Nook etc.) - remotely possible in 2 years. Unless they have a local offices and team in each market, we should be able to compete with them in the local market.

• It’s an Acquisition Game Amazon acquired stanza (a year old company offering ebook in iOS) in 2009 for technology / Rakuten acquired Kobo to compete with Amazon Dec 2011 / Overdrive (they hold licenses of most of the international ebooks and resell to others) acquire a ebook company in Australia Booki.sh in March 2012 / Tesco acquired e-book provider Mobcast Sep 2012 (Other sample of Local partnering in Thailand ex. Rakuten/Tarad.com, Livingsocial/ensogo )

• 3 Years is too late for Global Players in SEA. it's more economically to acquire/partner with a local player instead of gathering millions of users from the beginning, setting up a local team and office, and have to deal with all publishers and start converting all books to digital one more time


+ New Business

• Ookbee Live(Launch Jan or Feb 2013, 100+ local partners)

• Audio Books(Launch April 2013, new building + 5 new recording studios constructing now)

• Video Streaming


Regional Expansion- As of Jan 2013, Ookbee is the biggest regional e-bookstore on Mobile in SEA so far

- Thailand, Vietnam, Malaysia are operating

- Indonesia, Singapore and more within this year

OOKBEE VN9 Months/ 100K Users

66 Mags + 40 Publishers

OOKBEE Malaysia2 Months/ 50K Users

Exclusive with two biggest Publishers already

OOKBEE HQ24 Months /2.8M Users

Over 250 Mags + 150 Publishers85% market Share

1st Step:Partnering with SCOOP

They are like 1/5 the size of us but Indonesia market is a

must-goLooking for a partnership

with Telco

Singapore/SPH signed

Start Feb 2012

1

2

3

45


Global Expansion

- Ookbee is partnering up with global book distributors in other countries.

- We are launching our first app there in the Netherland with 15,000+ titles

MAGBooxNetherland

Feb 2013 Launch


Are we dreaming Big enough?

Make it 3X for SEA

(The Size of the market is actually 8X-10X for Thailand + Malaysia+Singapore+ Indonesia + Vietnam + Philippines)

(with just 3X projection, we don’t even have to be No.1 in these markets)

2012

e-Book/Paper market share US : 20% UK : 5%Thailand : < 0.5%

Thai’s Book Market Size = $800 M

Ookbee 2011 Revenue = $0.XM (0.05% book market share)

Ookbee 2012 Revenue = $XM (0.4% book market share)

we grew 8X last year

2017If the number of Thai e-book/paper follows the

global trend and grow to just 10%

(that’s 5 years from now and US 2012 is already 20%)

Ookbee’s Revenue will be estimated at $64M for

Thailand aloneRevenue of $192M in 2017 is our dream

I know you think I’m crazy :) Well..it just feels better when you have big dreams!


Before we end today...OK, I’m not an expert but here... these are

What I’ve learned so far


Implementing visiontakes time

It’s always a good idea to use every resource available to speed things up

startups are hardand


myth: Startups are cheap to build

reality:lean or not, it costs money tobuild something significant.


The goal of a startup is to figure out the right thing to build - the thing that customers want and will pay for - as quickly as possible.

!! ! ! ! ! ! ! ! ! -eric ries


“Hey CEO’s!Your ONLY job is to keepthe company going until youfind product/market fit.”* Okay, that AND 10 billion other things. But this is the most important.


Speed Winsin hiring, development, design, releases, biz dev

Be Agileand worry about scaling later


Outsource what you canAlways Outsource Complexity


To all startups out there

“Respect Everyone, Fear No One”


And please don’t forget to

“Enjoy the Ride” Thank you


Ookbee at bangkok entrepreneurs jan 2013

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