Asia Media,Entertainment and Internet Summit:Day Three

Panel one: User-generated content (UGC): can they be adisruptive force against traditional media

    Speakers: Kevin Seo (AfreecaTV CEO), Betty Ho (Phoenix New Media CFO),Scott Spirit (WPP CSO & CDO)How to utilize UGC: All of AfreecaTV’s content is UGC. Phoenix’s iFENGwebsite and apps are all editor produced or professional-generated contentPGC). But their Yidian Zixun interactive news app has 50% of UGC.

    Monetization of UGC: 70% of AfreecaTV’s revenue comes from virtual gifts,30% comes from advertising. Phoenix shares half of the PGC ad revenueswith content providers (government scholars, experts etc.) on the iFENGnews side (PC, mobile browser, or native apps) and all ad revenues minusadmin costs with UGC content providers on Yidian Zixun.

    Is UGC a threat or complement to traditional media: AfreecaTV believes UGCchannels are highly important and disruptive to traditional media, i.e.

    teenagers don’t watch TV any more, all spend time on youtube etc. Phoenixbelieves UGC and traditional TV are highly complementary. If producers fromtheir UGC channel become hugely popular, they are invited to talk shows onPhoenix cable TV to leverage their talent and broaden the user reach. Also,UGC cannot replace serious media for major event reporting like Paristerrorism.

    Censorship: The Chinese government only gives out general guidelines onsensitive topics. Phoenix has a list of over 100 sensitive key words internallyto filter inappropriate political and pornographic content. If any sensitive wordsare detected in UGC content, a manual editorial team will screen the contentto see if it’s appropriate. The process will usually be done pretty quickly, withinseveral hours.

    How to attract good hosts to UGC platform: AfreecaTV signs exclusivecontracts with their hosts in Korea. Phoenix now gives all of their ad revenueto UGC hosts to increase traffic. Asian consumers generally have low loyaltyand stickiness to platforms.

    Panel two: What are the idiosyncrasies of Chinese marketand how should foreign companies operate and monetize?Speaker:Mr Seong Pil Jeong, Chief Financial Officer, CJ CGV (079160 KS), MrKeunwook Jung, Chief Operating Officer, Showbox (086980 KS), Dr Peng Kan,Co-founder, Research and Development Director, Legend MediaModerator: Ms JooHee Cho, Journalist, ABC News