KT Multimedia

5/24/2018 KT Multimedia

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DigitalS ignage to New Media&No1Global LeaderKT

KoreaDigital Signage Industry:CurrentState andUseCases

2011. 12. 14

YouyoungLeeManagerKT DigitalSignageTeam


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CONTENTS

MarketEnvironments

Digital Signage Business inKorea

KTs Digital Signage Business

IV KT's Strategies


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1.Digital SignageProvides various typesofmultimedia contents interactively.

Delivers customizedads to targetcustomers andGrowsmarketshare.

CharacteristicsAs NewMedia Delivers various multimedia contents including videos Provides interactive contents and messages which can be changed easily Conforms to the trends of digital visual generation: prefers visual information and images

accustomed with up-to-date displays

1

As a BusinessModel High ROI : low operation expenses once installed Growing share of new media in ad market while traditional medias shares are falling

2As Mediaof Advertisement Customized ads for target customers Real-time measurement and analysis of ad effects Communicates in connectionwith mobile, IPTV, and internet.

3

I. MarketEnvironments


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1.Digital SignageEven thoughsome threats are imposing restrictionson rapidmarketdevelopment,Digital display is setting trends inadmarketbasedondecreasing total expenses,

technologicalprogresses in networkandsolution.

Complicatedcompositionofmarketplayers

1 Burdenof heavy initial investments

2

3

Less awareness of advertisers

Lackofprofessionalism

Threatspportunities

Prevalenceofdigital displays

1

Decreasingeffectiveness of traditional admedia

2

Fallingprice of display

3

Developmentof interactive interface

4

Growingawareness of targetmarketing

5


LackofStandards


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Global digital signagemarketvolumeamounts to 8 billiondollarsAnnualmarketgrowth rate reaches 14in theperiodof 2007~2012

Major telcos are enteringDS market:AT&T, NTT, etc.

Growth rate of contents market fordigitalsignage is extraordinarily high- Growth of systeminvestments: 6% per year

- Growth of related contents: 30% per year

I. MarketEnvironments 2. GlobalMarket

2007 2008 2009

5400

2010

~~

6200

7000

40

50

60

70

808000

1600

3800

2100

4100

2700

4300

3500

4500AdsContents

H/W

(Unit: Million Dollar)

Global Market

GlobalDigitalSignage industryis growing14 annually. Focus Media inChina is listedinNasdaqandglobal telcos suchas AT&T, NTT are expandingin themarket.


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Global digital signagemarketvolumeamounts to 8 billiondollarsAnnualmarketgrowth rate reaches 14in theperiodof 2007~2012

Major telcos are enteringDS market:AT&T, NTT, etc.

Growth rate of contents market fordigitalsignage is extraordinarily high- Growth of systeminvestments: 6% per year

- Growth of related contents: 30% per year

I. MarketEnvironments 2. GlobalMarket

2007 2008 2009

5400

2010

~~

6200

7000

40

50

60

70

808000

1600

3800

2100

4100

2700

4300

3500

4500AdsContents

H/W


Global Market

GlobalDigitalSignage industryis growing14 annually. Focus Media inChina is listedinNasdaqandglobal telcos suchas AT&T, NTT are expandingin themarket.


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Expansion ofnewmediaandgrowth ofrelatedmarket- Korean DS market size expected to reach300

million US dollars in 2015

19 of annual growth rate- Korea major companies are entering the

market- New market entrants being changed to major

local companies fromSMBs- Major advertisers awareness of digital media

is on continuous increase

2009 2010 2012

100

2015

500

120

160

1,000

1,500

2,000

2,500

3,000 280

40

60

55

65

90

70

190

90ADs,Contents

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KoreaMarket

Digital Signage industryis growingby19 annually inKorea.Technological developments in fields of IT andmedia arefacilitating thehigh rate of growth.

I. MarketEnvironments 3. KoreaMarket



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Expansion ofnewmediaandgrowth ofrelatedmarket- Korea DS market size expected to reach 280

million US dollars in 2015

19 of annual growth rate- Korea major companies are entering the

market- New market entrants being changed to major

local companies fromSMBs- Major advertisers awareness of digital media

is on continuous increase

2009 2010 2012

100

2015

500

120

160

1,000

1,500

2,000

2,500

3,000 280

40

60

55

65

90

70

190

90ADs,Contents

H/W

3. KoreaMarket

KoreaMarket

Digital Signage industryis growingby19 annually inKorea.Technological developments in fields of IT andmedia arefacilitating thehigh rate of growth.


[Digital SignageMarketinKorea]

KT70Others30



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[Digital SignageMarketinKorea]

KT70

Others30

1 KT

CJ Powercast

Daum

LG U+

2

3

4

5 Etc: GS25, 7eleven,Digital Chosun..

II. Digital Signage Business in Korea 1. KeyPlayers


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1 KT

CJ Powercast

Daum

LG U+

2

3

4

2. KeyPlayerBiz Model

Majorbusiness areassince2005- Network, Platform, Nationwide sales capabilityThe largestnumber of digital signage installationreferences inKorea

-25,000installations nationwideOwns patentedsolutions : i-frame- Provides end-to-end integrated solution

Basedonnationwidecommunications network infrastructure Digital Signage business know-how (7years of experiences) KT owns multiple service brands for Digital Signage

:Buildingelevator, UniversityCampus, Kimpos Intl Airport,Conveniencestore,Metro, AED-Signage,andMediaPole

II. Digital Signage Business in Korea


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1 KT

CJ Powercast

Daum

LG U+

2

3

4


Majorbusiness areassince2009- Contents creation, Broadcasting, Managementand digital Ads

Ownsmultiple operationsolutions applicable tovarious models Covering3,000media inshoppingmalls andetc.

:COEX-Mall Live,E-martLive,andCGV, Mediapoles,InchonIntl Airport, Seoul Metro Line 9,andDigitalCinema



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CJ Powercast

Daum

LG U+

2

3

4

1 KT


Majorbusiness areassince2010- Secured advertisementlicense and supplying

geographic-information-related contents

Outsourcingdevelopmentof newbusiness andsystemset-uptoTubecom

Investments for1,000units of DigitalView- a directory kiosk located in subway stations

Outsourcingadsales tomedia reps: Nasmedia and Incross Acquiredthe jointventure company: FingerTouch



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CJ Powercast

Daum

LG U+

Majorbusiness areassince2011- Outdoor display advertisements, promotion, systemset-up

Expandingnetwork-basedbusiness as a telco Outsourcingcontents developmentandserviceoperation :

CJ Powercast

LCDs inapartmentelevators and U+media life- 5,000elevators in Seoul Metropolitan area- U+media life :monitors +coupon vending machine +AED

2

3

4

1 KT

2. KeyPlayerBiz ModelI. Digital Signage Business in Korea


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TransportationResidentialArea WorkArea Leisure Shopping

III. KT's Digital Signage Business 1. KT Digital SignageKT is leading Korea's Digital Signage industry and provides total solutions for DS

BuildingElevator Bus ShelterKimpoAirport

SubwayOutdoorLEDBanners

AED - SignageBiz Campus

Medi- FrameMega - Frame

MediaPoleGS 25

KT has largest number of digital signage installation references

- 25,000 installations nationwide

KT owns multiple service brands for Digital Signage


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ResidentialArea Transportation WorkArea Leisure ShoppingBuildingElevator Digital media installed inside elevators

in key apartments & buildings nationwide

Unique promotional, advertising, video media

Currently, 22,000 units in operation

Advertising(80%), Community information(20%)

All in digital media

Advertisingrevenue generated

2. Service CasesII. KT's Digital Signage Business


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Targeting waiting and moving population in the city centerand crossroads

Currently, 319 units in operation

Until 2012, adding 2,000 units

ResidentialAreaBusShelter

KimpoAirport

Metro

Targeting visitors and transit passengers


OutdoorLEDBanners

2. Service CasesTransportation WorkArea Leisure Shopping

Targeting transit passengers


Targeting transit passengers

Meets needs for Low-Carbon Green Growth Getting permits fromlocal govtand servicing ads

III. KT's Digital Signage Business


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ResidentialAreaAED - Signage

Biz Campus

Medi- Frame

Mega- Frame


Targeting public institutions, enterprises and publichousing

Obligationto install AED / related training, promotions,announcements, etc.

Targeting waiting passengers

Plays personalized medical contents

426 units in 21 major hospitals in Korea

Targeting government offices and enterprises

Brand / Company / Product / City PR, announcements,training, etc.

800 units sold in 10

Targeting students

650 units in 40 major universities in Korea



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ResidentialAreaMediaPole

GS 25


Targeting public institutions, enterprises and publichousing

Obligationto install AED / related training, promotions,announcements, etc.

Targeting peoples outside the store

Currently, 2,000 units in metropolitan stores



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Residential Area(00:00~07:00) Transportation(07:00~09:00) WorkArea(09:00~18:00) leisure/Shopping(18:00~23:59)

IV. KT's StrategiesResidentialArea Transportation WorkArea Leisure Shopping

1. Ubiquitous Covers all daily life spaces

Regardless of location, people are able to communicate with Digital Signage

1. Ubiquitous

Windows AllAround


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1. Ubiquitous

APT(Elevators)21,000MonitorsE/V inside

Road-CenterBus shelters319UnitsSong-pa, Shinchon,SeoulStation

Kimpo intl. Airport

48UnitsDigital+Analog

Kang-namSt Media-Pole22 (Outdoor)ART, Kiosks

Electric Banners

LED(Street-side)Dae-gu

Hospital

426Units21Univ.Hospitals

University650UnitsSeoulUniv& 40Univ.

Commercial andOffice Bldg.

600UnitsMega-frame

Public office/areaDept. ofLabor200UnitsAED-SignageMega-frame

Convenience Stores(GS25)1,800Units46LCD

Malls, Mart ..Lotte, ShinSaegeAED-S, DID-F

StreetBus Shelter

1,800SheltersSeoul

Residential Area(00:00~07:00) Transportation(07:00~09:00) WorkArea(09:00~18:00) leisure/Shopping(18:00~23:59)

Subway102Units(Incheon)Subway(NewBundangway)5,454

IV. KT's Strategies


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2. DiversityV. KT's Strategies

2. Diversity of BusinessModels Creating new revenue models

Developmentof diverse media and application fields

Not only ad-focused business model,

But also adopting new media and convergence-oriented models

Increasing Values


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3. PlatformV. KT's Strategies

3. Enhancementof Platform-basedbusiness Aiming platform-based business and securingcritical technologies with high added value

Building platform connected with diverse networks including cell phone

Establishment and enhancement of new business models : online sales through platform


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4. ContentsV. KT's Strategies

4. Contents =King Developing differentiated contents for target space

Introducing new contents

- Introducing interactive contents able to communicate with customers

Ex. connectionwith mobile and provision of user experience

NewContents

Meetconsumers need

High interests &Participation

New Experience(Information)


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Thank You"Digital Signage Windows All Around"

KT Multimedia

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