Twitter vs. me2DAY

Most people outside of Korea have never heard of me2DAY. In fact, most people in Korea probably have never heard of me2DAY but the best way to explain the site is to call it the Twitter of Korea. Or, you might call Twitter the me2DAY of the rest of the world. No matter what you call it, there’s a battle brewing in Korea between the two for micro blogging supremacy of the… “Land of the Morning Calm.”

In one corner, you have Twitter backed by heavyweights such as Ashton Kutcher (@aplusk) and Shaq (@THE_REAL_SHAQ). Twitter also has the support of many technology heavyweights in Korea such as Chan Jin Lee (@chanjin), founder of Dreamwiz and Jin Ho Hur (@hur), CEO of Neowiz. What gave Twitter the largest boost in Korea amongst the mainstream public was the news that figure skating sensation Yuna Kim (@yunaaaa) joined the service. Unfortunately, it seems she has been inactive recently.

In the other corner, you have the native Korean service, me2DAY. me2DAY is backed by pop stars such as Sandara Park from 2NE1 (pronounced twenty-one) and G-Dragon from BIG BANG (pronounced exactly how you think it would be pronounced). This has resulted in me2DAY gaining a large following amongst the younger crowd that tend to idolize pop stars. Despite the backing of these big name pop stars, the biggest supporter of me2DAY would have to be Naver, the dominant Web portal in Korea. Naver bought me2DAY in January of 2009 for around 2.4 billion won and controls around 70% of the local search market.

Recently, Naver started to integrate me2DAY a bit more into their site. They started by integrating me2DAY pages with search results. For example, when you search Naver for “Sandara Park” or “G-Dragon,” you’ll get a link to their me2DAY page. They’ve taken this a step further with the Pusan International Film Festival. Search for information about the film festival on Naver and you’ll see the latest photos from the film festival that have been posted to me2DAY. You will find a screenshot below.

Pusan International Film Festival

The battle between Twitter and me2DAY in Korea is still in its infancy and it’s still too early to say who will come out on top. It may even be to early to determine whether micro blogging will become a fixture amongst the mainstream public. One important note is there isn’t any international Web site that has attained a large amount of success in Korea. The best example might be Youtube but it still garners well under 20% market share for online videos. I tend to think Twitter has a good chance to turn the tide but Naver is the 800 pound gorilla in Korea and thus, me2DAY will be a force to be reckoned with.

Intro to Cyworld: Korea’s Social Network Powerhouse

Screenshot of Cyworld and Cyworld’s “mini-hompy”

Korea's largest social network

Korea's largest social network

“Do you cyworld?” or “Do you cy?” is actually a relatively common question to ask someone nowadays. That is how prevalent CYWORLD, the leader in the internet “mini-hompy” market, has become in Korea.

This is probably the rough akin to people saying “just google it” in the US which has become a common phrase in lieu of “search for it online”–hmmm…or even more equilavent to the 1998 equivalent question “do you have a web site?”. And that is very telling.

anyway…for background for those not plastered with cy-this and that everyday…..(you guys get “google this” or “google that” )

Cyworld is a Korean internet phenomenon.
Cyworld, is the largest most popular of the now-coined “mini-hompy” web site–with over over 13,000,000 unique active members, last I checked. This so called, “Mini-hompy” model is CHANGING THE NATURE of the internet landscape here in many ways (and SEARCH)…and has become a legimate and mainstream online marketing and PR channel: in the tune of hundreds of millions in very high margin revenue. . It has affected search industry to an extent as it completely outside of the search engines grasp….totally proprietary. yikes!!

And its very viral.

Cyworld parent co. is Nate.com, whose parent company is SK Telecom. So, simply: cyworld is an SK company. (this has interesting implications in the market…but that’s another story).
Its also doing insanely well with its recent launch in China as well (about 10,000 new signup a day).

<<< aside: WHAT THE HECK IS A MINI-HOMPY? I’ll explain more later…if you do a seach there are other threads on it.

Competition has heated up a lot in the mini-hompy market, with DAUM’s Planet being the next largest competitor, but cyworld remains dominant. however, in a counter move, Daum is trying to capture the US market first with its English ported version (via Lycos…which if you didn’t know is owned by Daum) also called “Planet” (under the AngelFire brand banner)

So if you want to know what the mini-hompy thing is about and don’t read korean or have a Korean resident number to sign up for a cyworld korea….the best way is to check out Daum’s Planet (US version). Note: the US version is not anywhere near as robust as cyworld or daum’s korean version of planet…yet….

but you’ll get the idea….
Lycos Planet

as a note: cyworld will launch stateside (with an unknown big partner) and things will get very interesting.

Or take a look at Cyworld (Korea) site itself:
www.cyworld.com
(but note the site is not the important part…the MINI-HOMPY is the meat and bones of it….)

thus, here is an example of an random example of a mini-hompy:
(no affiliation I just picked a random one with lots of crap..er….stuff all over it)

http://www.cyworld.com/godr79

yup…crazy ain’t it?


REVENUE MODEL
Cyworld makes most of its money through Dottori item sales (“acorn” items) which are basically things like skins, avatars, hats for your avatar, furniture for your cyber mini-room, etc etc. this is akin to Ultima RPG online game, for which items to use in the game (like swords) were so popular that you could buy them many of them on ebay. That is, cyber items became real goods and commodities. anway…

here’s a Screen shot of a page of items from its Cyworld shopping mall, where you go to buy your dottorri (acorns).

http://cyworld.nate.com/common/main.asp


BASIC FEATURES

a VERY basic run down of some of cyworld’s major features
(NOT by any means a complete list..just some off the top of my head):

the BIG ones it would NEED to make a significant move towards cyworld/mini-hompies here:

  • unlimited upload space for images with built-in autoresizing and editing tools.
  • a customizable and personalizable mini-room.
  • free music jukebox with a huge library of free, legal songs to play on your site.
  • purchasable acorn items. (avatar, skins, decorations).
  • fluid mobile integration.
  • mini-games (flash games)
  • easy “jump links” to friends’ sites back and forth.
  • system to easily add built-in modules (like a forum, diary, photo album, guest book, drawing board, mini-board and more.)

and like I said, that’s just the tip of the iceberg, but no way I could possibly list all the features…but still I’ll try to update or highlight a few of them down-the-road.

Technically speaking Cyworld isn’t anything that impresses a hard-core programmer, but slapping all of it together in the way that they did is no mean feat and would take insane amounts of coordination.

Here’s a great write up on cyworld from an “addicted users” perspective (and much easier to just post it then write it. . lazy bastid that I am. )

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‘I Was a Cyholic, a Cyworld Addict’
Citizen reporter Jennifer Park recounts her plunge into a realm of alter egos and big business &copy;2004

I was a cyholic, a Cyworld addict.

Each morning I woke up with blood shot eyes and a headache. That was nothing compared to more serious symptoms I eventually developed after being “on” Cyworld. I found myself turning into a serious exhibitionist and a stalker, a common symptom for cyholics. I will share my experience after “overdose” of Cyworld and what I have learned through the process of rehabilitation.

I used Cyworld to visit my friends’ mini home pages provided to all members. Having witnessed how addictive Cyworld was, I kept away from my own home page. When my friends tried to lure me into becoming a cyholic, I thought I could resist. I was wrong.

When I saw that the rise in number of visitors to my home page, I needed to do something to keep them coming. That number gave me an incentive to “open” my home.

My new home had a personal profile, diary, mini room, photo album, bulletin board and message board options. I didn’t need to pay “rent” but could simply “move in.” The mini room came with an empty room and a character figure called “mini me” representing the user. I could change its facial expression, body position, hair and its clothing. I used to spend hours playing with Barbie dolls during my childhood, and one would have thought I grew out of it. Wrong! Mini me was my new best friend.

I wasn’t the only one lost in this “Barbie business.” Through a unique system of “forming kinship,” which can be accomplished with two users’ consent, I met many members of the cyholic gang. The list of my kin kept expanding and the hidden pressure started to reveal itself. I felt obligated to visit my kin often to maintain “kinship.” Many of my so-called kin were people I barely knew.

This sort of phenomenon is common in online social networks. People tend to label those they do not know well as friends, perhaps for political reasons or to meet more friends through their so-called friends. I felt compelled to prolong the phony relationship because each user can find out whom out of your kin list did not visit you in the past month. Though this is intended to help people get along, it quickly becomes an unwelcome duty.


An example mini home page

Thus my addiction. For people living or studying abroad like myself, Cyworld is an alternative to international phone calls. With Cyworld, I did not miss out on life in Korea. It showed no clear-cut line between countries. Cyworld was just another living space and all Cyworld users had that common identity. I thought it was a cheap way to stay in touch with my friends.

Most of my friends had entered Cyworld before me and their mini rooms showed just that. They had tons of digital items such as fancy wallpapers, furniture, pets and more. Their number of visitors exceeded mine by far, triggering my ambition and jealousy.

As a cyholic, I unconsciously associated popularity with the number of visitors and believed that the number corresponded to how nice the mini room appeared. Decorating is a necessity in running Cyworld. My mini room only had a free wallpaper and mini me. I craved “acorns.”

All digital items are purchased with cyber money called acorns, the main source of Cyworld’s profit. One acorn, equivalent to 100 won (about 9 cents), can be paid via several methods, such as a credit card or cell phone account. Cyholics also go through the phase of being a shopaholic. I no longer daydreamed about a guy, but acorns and things to buy with them. Because Cyworld was clever enough to substitute money with a harmless object like an acorn, I rarely felt like I was being a spendthrift.

I was convinced that I was doing some good when giving someone a gift. In an interview with Chosun.com, the head of Cyworld division at SK Communications Lee Dong Hyeong stated, “The art of living is giving as much as you receive.”

This seems like an ideal way of maintaining kinship, but don’t forget that acorns are needed to make this possible. Cyworld displays the number of gifts received on each users’ front page to motivate them to exchange gifts. This relationship appears healthy and necessary, but it boils down to helping Cyworld’s bottom line.

A Cyworld “success” graph

Cyworld displays your popularity on your front page, fueling the addiction. The bar graph compels you to seek acorns night and day. Each bar is labeled “sexiness,” “fame,” “friendliness,” “karma” and “kindness.” Cyworld knows that Koreans tend to be ambitious and ostentatious. They use this knowledge to display the front page with a measurement of “success.”

Your “fame” increases each time you accumulate ten visitors. “Sexiness,” “friendliness,” “karma” and “kindness” go up when you give or receive gifts. Cyworld accumulates more visitors and acorns in this way.

Cyworld wasn’t always this successful. The reason it was able to beat other home page services was because Freechal, once the most popular home page company, took the bold step of deciding to charge their services. Cyworld used this chance and pledged to operate free of charge for life, prompting Freechal users like myself to jump ship.

When Cyworld introduced its mini home page service in 2001 it had one million members. Its members skyrocketed in late 2003 when Freechal started its fee-based system. Cyworld has 7 million users as of July 2004.

Ironically, people like myself who abandoned Freechal because of its fee unknowingly invest great sum of money in Cyworld. When I buy a frame cover said to last for 30 days at the cost of 20 acorns, I am investing 2,000 won ($1.72) and feel compelled to buy a new one when it expires. Recently Cyworld’s daily income ranged from 70 million won to 103 million won ($60,280-$88,780). This means that cyholics buy around one million acorns a day.


Cyworld’s main page

Cyworld’s success is recognized by all “.com” industries in Korea. Founder Lee Dong Hyeong sold his company to SK Communications because he lacked the necessary funds to operate his ballooning enterprise. SK Communications has since made a lot of money after incorporating Cyworld with Nate.com.

Nate.com was ranked third after SK merged the two corporations. Cyworld’s profit then increased by 60 percent and “Cyworld fever” is everywhere. Instead of asking for a phone number or e-mail address, people ask, “do you Cy?” SK Communications even made it possible to check mini home pages through cell phones, so people can take Cyworld with them everywhere they go.

Cyworld expanded its sphere of influence with a function called “people search,” allowing a user to find any Cyworld user by typing in their name, year of birth and gender or by entering an e-mail address. This allows people to contact someone they have lost touch with. According to one 29-year-old housewife in Seoul, this has been a useful tool to find friends she lost touch with after she married.

On the other hand, some people use this tool for stalking or to send unsolicited messages encouraging people to visit their page. And some employers take an advantage of this system to keep an eye on their employees. Many online network users should keep in mind that they may have to pay consequences for their freedom of expression.

Cyworld makes it easy to get addicted. A single click on the name of any Cyworld user will hook you into Cyworld for hours.


A diagram of “kinships”

I kept on committing the sin of saying “just one more” which turned out to be all night. It only takes a second to load someone else’s page, but the time consumed in posting and reading the message board and checking out the album is substantial. When you see someone familiar or attractive in that home page, you simply click and skip over to that other person’s home page and repeat the process.

After I became a true cyholic, I often visited my ex-boyfriend’s mini home. It started as mere curiosity and ended almost like stalking. Cyworld makes what is impossible in real life possible in cyber world. I live far from my ex-boyfriend and can’t invest the money and time required to hunt him down. So I simply “hired” Cyworld to do the spying for me. Peeking at his mood indicator, message, board, and album, I knew exactly what was going on in his life. The only thing that stopped me from stalking him was the messages that his friends left on his board congratulating him on finding a new girlfriend.

I found out how serious the Cyworld phenomenon was when I discovered it was taking over reality. A person my friend introduced to me was the owner of a page I recalled from my friend’s message board. Scary as it may sound, I knew exactly where the person was going to school and who he was friends with.

I felt like a stalker but couldn’t help but to ask, “You are friends with xxx, right?” What shocked me even more was his response. “You just graduated from xyz school in abc, right? I saw you in my friend yyy’s Cyworld.” We knew personal details about each other — though we’d never met.

There is no embarrassment in confessing to be a stalker because, ironically, people enjoy being stalked. According to one 29-year-old man, knowing that a woman he was interested in was visiting his home page, he shaped his image through Cyworld and won her love.

Cyworld was for me another realm, perhaps more real than the real world. What I got in return for making others happy were red eyes and a headache. I came to find that there is so much to enjoy in life when you say “no” to Cyworld.

I no longer rely on others to judge me by how I appear in the cyber world, because many of that’s not the “real me.” I still visit Cyworld and some friends still visit my Cyworld. I guess I am not fully rehabilitated, but I no longer depend on some corporation to run my life for me.

2004-07-26 15:44 article 2004 OhmyNews

Cyworld App store coming soon

Nate Dev Square for Cyworld

Cyworld held a conference today for App store developers. For those of you not familiar with Cyworld, it’s the largest social networking site in Korea with over 24 million unique users. While most sites have trouble accurately identifying unique users, Cyworld doesn’t have this problem since users much input their real name and Korean identification number to register. There are also 27 million NateOn (instant messenger) users.

Cyworld is inviting third party application developers to write apps that can run on its service. These apps will be listed on the Cyworld app store. Currently, all apps will have to be freely distributed but developers can still monetize their apps by selling virtual items. Cyworld uses a virtual currency called dotori, or acorns and has been one of the most successful services in the World in monetizing social networking traffic.

Developers will share revenue with Cyworld 70/30, with 70% of the revenue going to app developers. There are a number of companies doing an enormous amount of revenue on Facebook and the same should hold true for Cyworld. While Cyworld doesn’t have the mass amount of users Facebook does, Cyworld users are more used to paying for dotori to decorate their page.

A number of companies in Korea have also found success creating free games and realizing revenues by selling virtual items within their games. This is a business model that has proved quite lucrative in Korea.

It will be interesting to see the Cyworld app store launch and it won’t be long before we hear a number of success stories.

YouTube Korea shares videos with Cyworld

Here’s an update that was easy to miss…

YouTube (Korea) now allows sharing to Cyworld! (you know, when you click that “share” button below vids? Well, Cyworld is the first listing when logged in from a Korea located IP or Korea account).

This is the first significant use of the new cyworld api I’ve seen. And its a big one.

NOTE: YouTube for all the troubles its had in Korea… is still a major player to be watched and ON THE RISE! All the publicity surrounding its decision to block Korean based accounts from uploading and commenting has served to:

YouTube Korea added Cyworld as its first "Send Video" option

YouTube Korea added Cyworld as its first "Send Video" option

annoying the Korean govt.
improve its image with Korean netizens (and outrage at said govt. administration)
increase its traffic following all the controversy

YAY!!!

Cyworld Opens up… a little.

Background
Cyworld has been Korea’s Social Network Walled-Garden for years… and it only recently showed signs of opening up.

The true predecessor to facebook and myspace with over 20 million unique registered users (ie: like over 80% of TOTAL Korean actual internet users o_0!), Cyworld has finally…..FINANNNLLY… come to its senses and announced it will open its doors integrating Open Social technologies, (instead of its lame attempts to just cookie cutter port its system to the US and abroad).

Its not too clear to what extent this happen, but the possiblities are endless… including the potential opportunities and effects this could have on the entire internet economy in Korea or better yet, outside of Korea.

Given massive “walled-garden” approach of most Korean internet properties (especially true of cyworld), ANY opening up is better than none, imo. It even says they want to be as “open as Facebook”. One can only hope.

but bottomline is: this can only be good.

article (in Korean) (will try to find English articles on this)