Why give FIFA 07 away for free in Korea

January 19, 2007 at 5:36 pm 1 comment

  James (MindShare regional, Singapore) writes: 

Eric Pfanner at IHT just wrote an excellent, well-researched article Internet pushes the concept of ‘free’ content, supported by advertising.

I recommend you to read the full article, which explores the overall trend towards giving content and other media and services away for free, and the huge burden companies are putting on advertising to provide the long-term business model. We see the same trend in (free) newspapers, music, mobile services and other areas. 

In Asia of course, where piracy is rampant, and consumers are far less willing to pay for content in general, this trend is likely to be accelerated. Here are the two Asian examples from the article:

“FIFA 07,” a video game for soccer fans, costs around €50 in
Europe. In South Korea, five million players have downloaded the online version free — yet Electronic Arts, the publisher, is cheering them on. Realizing that it was impossible to sell “FIFA Online” in a country where piracy is rampant, Electronic Arts started giving away the game last spring. Once the players were hooked, the company offered for sale ways to gain an edge on opponents; extending the career of a star player, for instance, costs less than $1. Since May, Electronic Arts has sold 700,000 of these enhancements.

Even in China, where piracy is widespread, EMI Music agreed this week to make its music available for a free, ad- supported service run by Baidu, the country’s largest search engine.

I’ve also pulled out some other juicy facts/examples from the article:

  • At least 28 million free newspapers are distributed every day around the world, 19 million of them in Europe, where the total has doubled over the past three years.
  • After several years of heavy promotion, digital sales made up only 10 percent of total music industry revenue in 2006
  • AOL, formerly a subscription service, has opened its Internet portals in the United States and Europe to all Internet users, free of charge, in the hope of appealing to more advertisers that way.
  • According to a survey of 130 media executives from around the world, conducted recently by Accenture, 31 percent forecast that subscription models would be the dominant business model in five years’ time, with 25 percent opting for so-called pay-per-play funding. But 37 percent said advertiser financing would be the predominant business model in five years’ time.
  • Worldwide, media spending by consumers and business users still handily outstrips advertising, by $944 billion to $385 billion, according to PricewaterhouseCoopers

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Entry filed under: all asia, china, content, digital, gaming, korea, media general, mobile, music, sports, television, trends.

Need to track Asian blogs Healthy but lazy in the Philippines?

1 Comment Add your own

  • 1. rsbodapati  |  January 23, 2007 at 10:56 am

    really very juicy and fruity facts about the overall trend towards giving content and other media and services away for free.

    Reply

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