Mobile internet data traffic is poised to explode in the next four years, growing 13-fold by 2017. In Asia-Pacific specifically, demand for gaming, video and rich mobile content has transformed niche industries into multi-billion dollar businesses. In fact, the latest statistics from PricewaterhouseCoopers (PwC) Entertainment and Media Outlook reveal that three of the top ten fastest growing territories for entertainment and media spending are from Asia, namely China, India and Indonesia.
This has spawned the creation of interdependent ecosystems and the rise of new regional players that play a pivotal role in how content is delivered to end users. We’ve seen a virtuous cycle going from mass adoption and consumption of global online content to the creation of regional content and now increasingly the export of local-brewed content regionally and globally.
Specifically, Asian content is on the rise, as evident from the cross-border, intercontinental investments and expansions being made by some of the key digital media and content players in the region. For example, over the last year, eight of the ten largest merger and acquisition deals in the gaming space had either Chinese, Japanese or South Korean buyers.
Meanwhile, Asian consumers are increasingly tech enabled with more than 226 million mobile phones sold to end users in Asia-Pacific in the first quarter of 2013, increasing the region’s share of global mobile phones to 53.1 percent year-on-year. On top of this, government support for national high-speed fibre deployments combined with mobile operator investments into high speed LTE networks mean that consumers are finally able to truly benefit from the promise of a converged, connected society.
Consumers, especially those between the ages of eighteen to twenty-five, expect their digital media content to be delivered as a personalized experience, meaning their content on their desired devices when and where they want it. Let me say that again. They “expect”, not “demand” it. If they don’t get what they want, they will move on to another service option.
This places a growing burden on content and digital media providers, as they not only have to worry about their core offering, but they also have to ensure that the pipes delivering the content to customers are cheap, efficient and always-on. Today, quality, reliability and user experience are critical components to the success of a content company.
Let’s take gaming as an example. Research from Ovum shows that the Asia-Pacific digital games market will more than double over the next four years to be worth US$30.3 billion in 2016. Ovum estimates that Asia-Pacific will have more than 1 billion gamers by 2016 of which nearly 900 million will play games on a mobile device. While this represents a huge business opportunity, these gamers are dispersed amongst the many countries across Asia, and serving their needs requires a well thought-out infrastructure deployment strategy – one that balances performance with cost.
Therefore, to be successful in the gaming industry, it’s essential that companies find a partner who can do just that: enable content delivery with low latency and high reliability, creating the best possible experience for their users.
NHN Corporation, the leader in mobile gaming in South Korea, is one example of a company that has done this. The company has been a top player in South Korea for the past decade, however, it has also been successful in expanding its business to other markets. Most recently, the company launched NHN Entertainment Singapore, a wholly-owned subsidiary of NHN Corporation, which offers some of most popular online games globally and provides a platform for mobile game developers to build and distribute games. However, to be successful in other markets, it was critical that NHN found a partner that could help them to provide a high-quality end user experience.
To do this, NHN Entertainment Singapore deployed in Equinix’s International Business Exchange™ (IBX®) data center in Singapore, for its co-location needs. With the deployment, NHN could instantly access Equinix’s dense network ecosystem to extend its reach across the region and deliver an optimal end-user experience while reducing costs. In fact, since the deployment, NHN Entertainment Singapore, has improved performance and latency, reduced lag time and improved the user’s gaming experience.
As Asian content companies go cross-border, working with a global partner that delivers a choice of network providers, global reach and access to an ecosystem of social, cloud and mobile platforms, will ultimately drive optimal performance, increase end-user loyalty and improve revenue.
Photo above courtesy of wlodi