Press Release 2005.08.09

Daum Aims To Become Next-generation Convergence Media Firm

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Daum Communication (http://www.daum.net) unveiled a plan to to become a total convergence Internet media company with a wide range of next-generation service including TV portals and Internet telephony service.

"We plan to roll out a series of next-generation services that go beyond the limit of such existing business models as search and communities in the second half of this year," said a manager at the company on August 4. "We expect these new models to become mainstream in a few years of time."

The leading Internet media firm is now putting final touches on TV portal, voice over Internet protocol (VoIP), wireless Internet, telematics and digital multimedia broadcasting (DMB) rollouts. The company earlier formed a partnership with LG Electronics to provide test TV portal service to 100 households in Seoul. It also plans to launch “Skype Out“ Internet telephony service adopting Web-to-phone technology next month at the earliest.

Daum began drawing up a differentiation strategy in 1999, and the launch of new services is seen as a part of the drive. "The Internet is media, and we see link with a variety of devices such as PCs as key," said Lee Jae-ung, CEO of the company.

Under the partnership, LG Electronics will provide hardware used for TV portal including set-top boxes and TVs, while Daum works on content and users interfaces. Daum aims to combine news, information and mail service with total entertainment including movies and music, which tend to become more effective on larger screens of TVs. It plans to launch commercial service by the end of this year after test period.

“Skype Out“ service allows PC users to access fixed-line and wireless communication service at low fees, and the company is talking with telecoms carriers to set service fees before launching service as early as late this month. Daum also teamed up with MBC for DMB business.

The company formed the u-biz business division with 70 to 80 staff in the first half of this year, as it moved ahead of rivals in push into next-generation convergence service. The business division comprises of strategy, wireless business, TV portal and development teams.
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