WeChat is Tencent's ace in China's online entertainment race

WeChat is Tencent's ace in China's online entertainment race

 
 The logo of Chinese instant messaging platform called WeChat on a mobile device which has taken the country by storm in just three years.

BEIJING/LOS ANGELES, May 13 (Reuters)

- In a multi-billion dollar dogfight with Alibaba Group Holding Ltd for leadership in China's online entertainment market, mobile messaging app WeChat is Tencent Holdings Ltd's trump card.

The wildly popular app allows Tencent to channel 500 million monthly active users to its entertainment services, a huge consumer base for subscriptions or marketing - pay dirt for media and advertising partners.

Combined with a willingness to throw cash at top-tier film, television, game and music content, Tencent has locked down exclusive deals with some of the biggest names in Hollywood, eager to piggyback on the $190 billion (S$252.8) Chinese group's growing success.

Shenzhen-based Tencent, whose WeChat and QQ social networks are as ubiquitous in China as Facebook Inc is elsewhere, has spent billions of dollars in recent years building up its content library and on stakes in entertainment firms, though the company declines to give specific details on its investment.

Last month, Tencent added streaming rights to Twenty-First Century Fox Inc's FOX, FOX Sports and the National Geographic Channel to its media arsenal, which already includes various rights for Sony Corp's Sony Music Entertainment, Warner Music Group, Time Warner Inc's HBO network and the US National Basketball Association.

"We've paid aggressively to buy some of the most popular content, the most established brands," Tencent's Chief Strategy Officer James Mitchell told Reuters in a recent interview.

Founded 17 years ago by CEO Pony Ma, Tencent already operates an online gaming business to rival those of Sony, Microsoft Corp and Nintendo Co. It also owns China's biggest music streaming service by subscribers, and by some measures runs the country's most popular Internet video platform.

The pairing of Tencent's active dealmaking with the success of WeChat and QQ is critical, says Mathew Alderson, who leads the China media and entertainment practice at Harris Moure in Beijing.

 "I consider them to be ahead because of the reach and sophistication of their social networking tools," he said.

The stakes are huge.

Revenue in China's online entertainment industry is set to double to more than $46 billion by 2018 for online games and video streaming alone, according to iResearch data, prompting China's biggest Internet companies to spend lavishly on TV shows, films, games, music and sports rights.

"When we have the key content, our traffic makes it more popular than it would otherwise be," said Mitchell, noting that Tencent's online advertising business revenues jumped 65 per cent last year, to 8.3 billion yuan (S$1.78 billion).

Video advertising revenue has at least doubled year-on-year in all of the past six quarters.

Tencent reports January-March earnings later on Wednesday. KNOWING THE SPACE Alibaba, meanwhile, is flush with cash after its record $25 billion share sale in New York last year and, alongside its affiliates, has spent more than $3.5 billion since the start of 2014 on stakes in video, music and gaming firms, including a minority share of Youku Tudou Inc, one of China's biggest Internet video services.

Alibaba's entertainment business claims music distribution deals with Germany's BMG and two of Taiwan's biggest labels.

It has also teamed up with Hollywood studio Lions Gate Entertainment Corp to offer a subscription streaming service in China.

 Its operations are led by former members of Tencent's video business, who left following a leadership reshuffle around 2013.

They include Patrick Liu, current head of Alibaba's digital entertainment unit and former head of Tencent Video.

Other firms staking a claim in China's online entertainment market include Internet search leader Baidu Inc and its online video unit iQiyi; Sohu.com Inc ; and Leshi Internet Information and Technology Corp Beijing.

Dealing with Tencent won't be easy, says Mark Natkin, managing director of Beijing-based Marbridge Consulting.

"They understand what users want in terms of entertainment content, they understand how to deliver it," he said.

"Tencent knows that space better than anybody."

Tencent's content library, which also includes South Korean YouTube sensation Psy through a tie up with YG Entertainment Inc, is arguably deeper than that of its rivals.

"You clearly see the growth of (Tencent's) position," said TCL Multimedia CEO Hao Yi, who works with many of China's Internet companies, about the firm's video business.

"A couple of years ago they were nowhere. The WeChat thing, indeed, this is a killer."

In recent months, Alibaba and Tencent have taken their rivalry overseas, both setting up offices in Los Angeles to slug it out for programming deals with Hollywood studios and producers.

While both groups have financial firepower, WeChat could be a clincher for Tencent in winning deals with content producers.

"You can use content to drive very good margins - if you have the right pipes," said one Hollywood executive.
-----  Reuters     13 May 2015

WhatsApp reaches 800 million monthly active users

WhatsApp reaches 800 million monthly active users


Mobile messaging service WhatsApp now has 800 million monthly active users, CEO Jan Koum has revealed in a Facebook post.

SINGAPORE - Mobile messaging service WhatsApp now has 800 million monthly active users, CEO Jan Koum has revealed in a Facebook post.

The app had about 600 million users when Facebook acquired it last year, and it announced that it had reached 700 million users in January this year.

At this rate of expansion, it will reach a billion users by the end of the year, the Wall Street Journal predicted.

 

In a dig at other messaging services, which often report registered users only, Mr Koum added: "Reminder for the press out there: active and registered users are not the same thing."

Facebook messenger is second to WhatsApp with about 600 million monthly active users, making the company the owner of the two largest messaging services in the world.

 

Google revolutionises search to help mobile users

Google revolutionises search to help mobile users



Google search will start factoring in how easy websites are to read on smartphones or tablet computers, underlining the changing way people surf the Internet

SAN FRANCISCO (AFP) - Google search on Tuesday will start factoring in how easy websites are to read on smartphones or tablet computers, underlining the changing way people surf the Internet.

The web titan said that the "mobile-friendliness" of websites will be a factor in ranking results to online searches done using mobile devices.

"As people increasingly search on their mobile devices, we want to make sure they can find content that's not only relevant and timely, but also easy to read and interact with on smaller mobile screens," a Google spokesman told AFP.

The change will affect mobile Internet searches in all languages worldwide and was expected to have a "significant impact" on results to queries, Google said in a February blog post heralding the move.

Lost your Android phone? Now Google can help you find it

Lost your Android phone? Now Google can help you find it




SINGAPORE - Google's search bar is a calculator, translator and currency convertor, and now it can also find your Android phone.

Just type in "Find my phone" in Google's search engine on the computer, and it will display a map that zeros in on the missing Android phone or tablet.

When I tried it, it located my phone "accurate to 17 metres", but it took a few seconds to load.

For it to work, the user has to have the latest version of the Google app installed on their phone, and be signed into the same Google account on their smartphone or tablet and their computer.

Google made the announcement on Wednesday on its social media platform Google+: "We've all been there - you've searched under your car seat, tossed around the sofa cushions and you still can't find your phone.

If you know where your computer is, you can now ask Google to find your Android phone from your desktop.

If the pesky phone is hiding nearby, Google can ring it for you - or you can see it on the map if you, say, forgot it at the bar.

Just make sure you've got the latest version of the Google app installed on your device!?"

3 easy ways to get free accommodation when you travel

3 easy ways to get free accommodation when you travel

Freelance television producer Mariana Ahmad (second from right), who spent six months backpacking and couchsurfing across Europe, is seen here in Turkey with fellow couchsurfers from Turkey and America.

Most of the cheap or free accommodation options out there require you to slave away on an organic farm for 10 hours a day, share a room with ten sweaty backpackers or commit to being a caretaker for months on end.

If that doesn't exactly sound like your idea of fun, here are a couple of painless ways to enjoy cost-free accommodation.

1. Use your frequent flyer miles
The problem with trying to amass frequent flyer miles is that if you just don't have that many, you could end up only being able to redeem a ticket to KL or Bangkok.

What's the point of wasting your precious air miles on a Singapore Airlines ticket to KL?

You'd probably end up paying more in taxes than a ticket on a budget airline would cost.

If you're in the situation where you don't have enough points to redeem a meaty flight with, you have the perfect excuse to use them to redeem hotel stays.

Now, while the KrisFlyer programme doesn't permit you to use your miles to pay for hotel stays, other programmes such as KLM's Flying Blue do.

At the moment, 25,000 Flying Blue miles, about the equivalent of a return flight to Thailand, can get you a night's stay at at five star hotel.

2. Go on a free meditation retreat
If your whole objective for going on holiday is to relax and get your zen on, a free meditation retreat will let you achieve your that at almost no cost.

Many temples or monasteries will feed and house participants of their meditation retreats and courses free of charge, although donations are appreciated.

All you have to do is to shut up and turn off that damned smartphone, which come to think of it might be easier said than done.

Doi Supthep Vipassana Meditation Centre in Chiang Mai, Thailand runs meditation courses ranging from 4 to 21 days.

Brahmavihara Arama Buddhist Temple in Bali conducts short and long meditation retreats.

Many ashrams in India such as Sri Ramanasramam located south of Chennai, offer accommodation for a small donation, although you might be required to attend their courses, which can range from just a few hours a day to hardcore full day affairs.

3. Couchsurf
This is far and way the most popular way to get free accommodation on the road.

Depending on your personality, it can be a chore liaising with hosts and not having as much personal space as you would in a hotel.

Or it can be a great way to meet and hang out with locals, who can at the very least clue you in on where all the best eats in town are.

Some hosts might give you the keys to their homes and let you come and go as you please, while others will show you around, introduce you to their friends and even loan you their pets.

You never really know what sort of experience you're going to end up with. If that sounds appealing to you, definitely give it a shot.

Some of my most memorable travel memories were made thanks to couchsurfing, and no, I haven't been murdered yet.

Here are some websites that facilitate the process :-

Couchsurfing, the original website and still the most popular

Global Freeloaders

Hospitality Club
 

Tony Fernandes ‘an old-fashioned guy’ when it comes to investmen

Tony Fernandes ‘an old-fashioned guy’ when it comes to investmen




















APRIL 15 — Expect a difficult time when trying to convince Tan Sri Tony Fernandes to invest in a startup if it doesn’t have a conventional business model, where the near to medium-term priority may not be about generating cash-flow or growing your bottom-line.

Many startups, especially in recent years, have been building their business by focusing mainly on growing their user base and market share. Facebook, WhatsApp and Uber managed to successfully raise funds in their early days, despite operating at a loss.

Their investors, comprising venture capital firms, angel investors and technology companies, believed that monetisation would not be a major issue once their investee companies had built a strong base of users.

“I am an old-fashioned guy — I like things to be cash-flow positive within a certain period,” Fernandes told the media at the launch of Tune Labs in Kuala Lumpur last week.

“Personally, I don’t believe in that kind of a business model. I think you do have to be profitable — but, you know, we have to look at each individual case,” said the cofounder and group chief executive officer of budget carrier AirAsia Bhd, a subsidiary of the Tune Group.

Although Fernandes, also the cofounder of startup incubator and accelerator Tune Labs, may be seen as a new player in the technology space, he is no stranger when it comes to investing in new businesses.

In fact, some of the businesses he or Tune Group — which he also cofounded — has invested in, came as a result of entrepreneurs pitching their ideas to him.

“Tune Talk was not my idea. It was Jason Lo’s idea. We funded him. He created Tune Talk,” said Fernandes. “Over the years, we have created a lot of entrepreneurs.”

Lo is chief executive officer of Tune Talk, one of the largest mobile virtual network operators or MVNOs in Malaysia when it comes to number of subscribers.

Tune Group itself has diversified businesses. Besides Tune Talk, it also has investments in Tune Hotel, Tune Money, Tune Ins, Tune Studios, Tune Box, AirAsia, and others.

For now, Tune Labs, also backed by AirAsia cofounder Kamarudin Meranun and ECM Libra cofounder Lim Kian Onn, is not funded by Tune Group directly.

However, should Tune Labs need additional funds, Fernandes had said he may consider getting Tune Group or AirAsia to participate. “That will be something to be discussed by the board of directors.”

MyTeksi spurned
Despite his entrepreneurial pedigree, Fernandes understands that funding and growing technology or digital startups is a different ball game.

“It’s not like setting up a financial services or telecommunications company,” he said. “You need to make sure that the platform is ready.”

Tune Labs would need to make sure that the successful startups from its incubator programme have the necessary support to turn their ideas into commercially viable products. This includes support in the form of office space, funding, administrative tasks, and legal resources.

While Fernandes said that the motivation for launching Tune Labs was mainly the three cofounders’ desire to see more successful entrepreneurs emerging from South-East Asia, one can’t help but wonder if it was also spurred by a missed opportunity.

“If we have been a bit earlier …,” Fernandes said. “For instance, MyTeksi approached us, but we weren’t ready for that.

“We weren’t a venture capital fund and we didn’t have the infrastructure, so we missed out on that,” he said at the Tune Labs launch last week. “MyTeksi would have been a perfect partnership.”

Malaysian-founded MyTeksi, now known as GrabTaxi, has since secured a total of about US$340 million (RM1.2 billion) in funding, and recently launched a research and development (R&D) centre in Singapore, where its holding company is now based.

It said it would be investing US$100 million in the R&D centre in the next two to three years.

Although Fernandes may have missed out on the MyTeksi partnership, he is nevertheless optimistic about “unleashing the full potential of South-East Asian entrepreneurs.”

“When I travel around South-East Asia, I notice a tremendous amount of entrepreneurial zest in the region — so I don’t think we [the region] will be short of ideas,” he said.

Different from the pack
Many startup incubators and accelerators have recently mushroomed in South-East Asia.
In Malaysia alone, these include such ventures by MAD Incubator, Malaysian Technology Development Corp, 1337 Accelerator, Technology Park Malaysia Corp, the Malaysian Global Innovation and Creativity Centre (MaGIC), and many more.

But Fernandes believes that there is space for Tune Labs to play a role in the regional ecosystem. “I don’t think there is ever enough. Compared with the United States, we are nothing,” he said.

He believes that Tune Labs will still be able to attract talented entrepreneurs because it brings something different to the table — after all, Tune Labs’ tagline is ‘For Entrepreneurs, By Entrepreneurs.’

“The key difference is the [Tune Group or AirAsia] ecosystem,” Fernandes said.

“Most incubators and accelerators … promise [essentially] the same thing — office space, access to capital, and a support system. But if you look at the challenge most startups face, it is how to get the product out to customers quickly, efficiently, and cost-effectively.

“With [our] ecosystem — whether it is 50 million passengers, the people who are staying at the 45 Tune Hotels worldwide, or those who buy travel insurance — we can reach out to them, and market to them almost immediately,” he declared.

“That’s our big differentiation.”

Tune Labs entrepreneurs will also have the opportunity to tap into the three cofounders’ networks, Fernandes said.

“Because AirAsia and Tune Group have a lot of partners, we have built strong relationships with many companies.

“So if [entrepreneurs] come to me and say that they want to see ‘someone,’ they have a better chance of seeing that ‘someone’ through us than by themselves.

It’s just one phone call or one email away. 

“We can open many doors to [our] entrepreneurs,” he declared.
— DNA
 

Following friends becomes top reason for using social networks

Following friends becomes top reason for using social networks



According to an international study published by GlobalWebIndex, social networks are primarily used to follow friends' activity and stay informed.

The market research firm polled social network members on their activity and it turns out that above all, what they are seeking is information, whether it is about current events in general or their friends' activity, and in the end, few are inclined to share their private lives.

Top 10 reasons people use social networks

1. 55% mainly log on to stay in touch with their friends and follow their activity;

2. 41% primarily use social networks to keep up with current events in areas that interest them;

3. 41% simply connect to kill time;

4. 39% focus on finding amusing content, in the form of articles as well as photos and videos;

5. 39% regularly share their opinions and comment on current events;

6. 38% use these avenues to share photos and videos with their friends;

7. 36% connect because their friends are there;

8. 33% simply maintain their network;

9. 32% use social networks to meet new people;

10. 27% regularly post about their everyday lives.

This study was performed by GlobalWebIndex, which every quarter polls more than 40,000 web users, aged 16 to 64, from 32 countries around the world.
– AFPRelax news, April 8, 2015.