English is the de facto lingua franca of global business (pardon the Latin). If you want to do business globally, you have to be able to speak and write English. But most of the world's conversations occur in other languages. We want ReadWriteWeb to be a venue for conversations about innovation not just in English but in all major languages. We want to hear stories about innovation in those languages by people who live and work in those countries. We also want some of those stories to be translated back into English for a global audience - English serving as the hub, as it were.

Our Trailblazing Site in France

ReadWriteWeb France is blazing a trail that we want to follow into other countries. Web innovators in France can now read a selection of posts from ReadWriteWeb in French. Fabrice Epelboin and his team translate ReadWriteWeb posts into French, localize the stories, adding bits that make them relevant to France, and create new stories specific to France. Some of these stories are clearly important to readers outside of France, and we will be bringing these to our global audience. One example is Fabrice's crusade against the Hadopi law. The law is specific to France, but the issues are global, and other governments are working on similar issues that could have alarming outcomes. We hope that ReadWriteWeb becomes both a local and global voice on issues such as this.

5 Other Country Versions in the Pipeline

Versions of ReadWriteWeb are currently being created for:

• China
• Korea
• Spain
• Holland
• Brazil

In each country, we are working with an entrepreneur who is passionate about Web technology.

These countries are all large economies. We already know how many people from these countries read our content in English. Many more will read and engage if the content is in their local language.

Engagement is critical. Reading is easier than writing. Many people are comfortable reading a post in a foreign language: even if they don't understand everything, they at least get critical information that is not available in their native language. But writing a comment and engaging in a conversation is much harder in a foreign language.

Why We Naturally Take a Global View

Many people assume, looking at our content, that ReadWriteWeb is based in Silicon Valley. We are not. We do have writers in the Valley, and we congregate there frequently for major events. But ReadWriteWeb's founder and editor, Richard MacManus, is based in New Zealand. Our COO, Bernard Lunn, is based in New York but is a Brit who was born in Berlin and has lived and worked all around the world. We are a networked business, with no single location, using the online tools that we write about to run our business. So viewing anywhere in the world as a good place to report from and not regarding any place as "foreign" comes natural to us.

Or perhaps that's just what they want you to believe, say critics. The Korea Times, for example, notes that it's more likely that the government is simply continuing its crackdown on free speech. Already they have been "repeatedly attacked by bloggers," the paper reports, "first over the controversial decision to resume U.S. beef imports, and more recently for its ineptitude in economic policies. The watershed moment came in January when police arrested Park Dae-sung, a blogger known more widely as 'Minerva' and a frequent critic of the government's economic polices, on charges of 'deliberately' undermining public interest by distributing fraudulent information."

Google Provides an Alternative Method for Uploads

In response to the new legislation, Google has decided they would rather prevent uploads and comments instead of requiring YouTube users to submit their real names and national ID number - a number similar to the United State's Social Security Number and yet another requirement of the new law.

"We have a bias in favor of freedom of expression and are committed to openness," said Lucinda Barlow, a spokeswoman for YouTube in Asia. "It's very important that if users want to be anonymous that they have that chance."

Another Google spokesperson, Rachel Whetstone, vice president of Global Communications & Public Affairs at Google, was quoted in The Hankyoreh newspaper as saying  "we concluded in the end that it is impossible to provide benefits to internet users while observing this country's law because the law does not fall in line with Google's principles."

In addition to blocking uploads and comments, Google informed Korean YouTube users via their Korean Google blog that they can change their preference setting to a country other than Korea if they want to continue to upload and comment on videos.

An Easy Way for Google to Look Good?

If Google had complied with the law, it would have represented the first time that the company had ever collected the actual names of internet users.

Still, while many are congratulating Google on taking a stand and protecting freedom of expression on the internet, in this case the company wasn't really risking that much. That's because in Korea, Google has a much smaller presence than its domestic counterparts like www.naver.com and www.daum.net. Let's see how the company behaves in countries where they have a much larger market share.

Image credit: Asiajin

Me2Day is purportedly "a big proponent of open web technologies." A cursory glance at the Me2Day site reveals that they allow login by OpenID, something its US equivalent has yet to do.

According to Wikipedia, Naver was launched in June 1999 and has since grown to be the most popular search portal in Korea. In October 2007, comScore ranked Naver - owned by NHN Corporation - as the fifth most used search portal in the world.

There is no word on how Naver plans to incorporate Me2Day functionality into its offerings.

This event was organized by the OpenWeb.Asia Workgroup and prominent entrepreneurs and bloggers within Asia's web industry.

While a good local startup in a European country can soon go international, having users from Europe and the United States, in Asia language is the top issue. Attracting users from neighbouring countries is difficult.

Each local web market in Asia is potentially huge, but these markets are still restricted and the global audience still lacks communication channels to understand the Asia web. Social networks are very popular in China. The mobile market is fascinating in Japan. Online gaming originated from and is still driven by Korea.

The India and Singapore markets could be easier entries for English-only service. Local markets like Vietnam are still quiet, but will be a battlefield for big names from China, Korea and Japan when ready for expanding. 

Social Web is Theme

Spurred by a desire to create a high-quality, informative and practical technology conference focused on the Asian Internet industry, Open Web Asia '08 was organized with 'The Social Web' as its theme.

Socialization has been a game-changing development on the Internet, and the social web is an area where Asia has its own strength and vibrancy. Asian countries have a distinct Internet culture and market players, so cross-country comparisons can be made.

Topics expected to be discussed at Open Web Asia '08 include: 1) How the Asia web sees trends in the global Internet industry; 2) The innovations in Asia's web; 3) The mobile and online gaming markets; 4) What are the challenges of internationalizing an Internet business to and from Asia?

Open Web Asia '08 provides a stage where leaders Kim James Woo (CEO, Yahoo Korea), Kevin Day (CEO, Comsenz China), Yoonjoon Hyoung (founder of Cyworld, Korea), Shusaku Maruko (corporate strategy, Felica, Japan) can share their insights with Western experts and entrepreneurs such as Loic Le Meur (CEO, Seesmic) and Kent Lindstrom (SVP, Friendster).

In association with one of the most prestigious conferences in Asia, World Knowledge Forum, the event will be held on October 14, 2008 in Seoul, Korea. For more information, go to the official web site.

It's Open Season

'Open' is one of the hottest words right now in the Asia web. Google is focusing on Asian markets and promoting its open strategies. Sohu has localized Netvibes' UWA. Yiqi was the first Chinese open platform fully supporting OpenSocial.

IDtail brought OpenSocial to Korea, and Mixi said yes the day OpenSocial was announced. Comsenz has developed its own ManYou Open Platform (MYOP) to target the China market.

With many open platforms announced and imminent, China and the Asia web need to assess how to monetize the Open web and prepare for the widget economy. Though the global Internet industry is still dominated by Western giants, opening up Asia will benefit both the regional and global Internet industries.

A | It is interesting to see that Facebook has almost no presence in the three markets we cover: China, South Korea and Japan. In China, QQ dominates by far with 300 million active accounts, Cyworld has close to 20 million in South Korea while Mixi has 14 million in Japan.

Q | Those are pretty big figures for subscribers. Even so, Facebook has a good portion of them globally and is losing money. Are the Asia social networks making money?

A | One thing to keep in mind is the addressable population: QQ only deals with China, Cyworld addresses seriously only Korea, Mixi is only in Japan. Corresponding penetration rate among Internet users are: 150% for QQ, 57% for Cyworld, 15% for Mixi. It becomes even more interesting when realizing all three are largely profitable. Notably, QQ had 523 million USD in revenues in 2007 and 224 million operating profit, with only 13% coming from advertising! This is more than Facebook's total revenues. Moreover, Facebook was still losing money last year (and likely this year).

Q | How do those services manage to turn such profit?

A | QQ and Cyworld make most of their money from digital goods - from background music to personalization, avatars or casual games. The introduction of an online currency supported by a variety of payment systems has helped lower the payment and monetization barriers dramatically.

Q | Are digital goods the next big thing?

A | It is certainly a great way to monetize a community. The West has been slow at catching up but digital goods are a proven monetization method on the Internet almost since Cyworld launched in Korea in 1999. Casual games are also a great money maker: imagine users were offered attractive high-quality Facebook applications for 10 cents. Many would pay, but today they have no way to.

Q | If it has been around for so long, why is it coming so late to US and Europe?

A | We see two main reasons: first, the West is not looking closely at Asia. When it does look, local successes are usually stereotyped, which prevents deeper understanding. Some great services like Naver's Q&A (which was Yahoo Answers' inspiration) were created there, mainly because the US do not have the lead anymore in Internet infrastructure, so local talent managed to come up with great new ideas. Second, most non-US markets have not developed a very rich online advertising market, and had no choice but to find alternative revenue models. In a way, the rich online ad market has been holding back innovation in the US, and forced most Internet companies to design their service around pageview as a main metric.

Q | Is that a problem?

A | It can be, as the focus becomes to generate more pageviews, not make the service better. Users are mere "eyeballs", while the real clients are advertisers. The revenue mix defines the service DNA. We even came up with a new metric: ARFU for "Average Revenue From Users" (rather than per user, for ARPU). With this in mind, ARFU for Facebook is almost zero, while ARFU for QQ is 87% Internet + mobile combined.

Q | What are the key lessons from those successful services?

A | First, that users are willing to pay for services - even in China! Second, several companies in Asia have already solved a number of headaches on how to make it work and can help save a lot of time by adapting their best practices. Third, that the main barrier is the persistent bias that all US stuff is great, while Asia just copies. I don't think QQ will make a bid on Facebook but there might be a need for a strong eye opener to realize that inspired by the West, Asia has made incredible advances that can now help us in return.

Q | Are those companies trying to enter foreign markets? Cyworld just pulled out of Europe and is not doing too well in the US either.

A | Cyworld tried China, US, Europe and Taiwan. Mixi is trying China. QQ has entered US via a content partnership with AOL on casual games. In most cases, they do not do too well as they send or hire managers and not entrepreneurs. Also, they often face tough competition from incumbent players while they dominate their home market. So they have less market acumen, less hunger and face a difficult timing. Those are the same reason why Facebook and MySpace are weak in those key Asian markets. That being said, the fact that they are not able to succeed themselves does not invalidate their concepts and business models. For instance, Xiaonei in China applied the early Facebook model (alumni) and is doing very well in terms of users. Who would say Facebook is not good even if they fail in Asia? The key is to focus on service concepts and business models, rather than on how well the companies execute them out of their home market. As for Cyworld, it is important to notice that the foreign versions are very dumbed-down compared to Korea's, where they enjoy a mature payment infrastructure and digital goods culture. If so many million people use the service, there must be something to learn.

Thanks Benjamin! Here now is his Media 08 presentation:

Note: +8* is offering free samples of their research on both QQ and Cyworld at www.plus8star.com. Also see ReadWriteWeb's review of QQ last year.