As the internet has become essential to the lives of billions of people around the world, dominant internet platforms have emerged. As a result, issues such as competition regulation and data privacy have become important topics for companies, governments and consumers to consider.
The Evolution of the Internet
Nevertheless, the role that the internet plays in people’s lives will continue to expand, business models will continue to evolve, the sources of innovation will continue to grow and regulation will continue to adapt.
In the midst of so many uncertainties about the future, some things will not change. People will continue to demand choice, convenience, speed and low prices. It remains to be seen whether we will see a continuation of the past whereby “winners take most” outcomes prevail and dominant platforms become even larger or whether the future will look different from the past.
How do investors determine which companies will be the winners or losers in the future?
In this webinar, Capital Group‘s equity investment analyst David Cummins examined the future of the internet in Asia.
Transcript (with timings)
2:57 What has changed in the global internet landscape in the last 5 or so years?
5:31 The difference between an internet company and a technology company
8:40 Will the pure play internet companies continue to dominate in the future?
11:03 How should we be thinking about the Internet of Things (IoT), blockchain, cloud computing, etc? Are these investment opportunities of the future?
14:48 We’re all familiar with the dominance of big global companies – Apple, Facebook, etc. What are their equivalents in the Asia Pacific region?
17:08 The markets in China, Japan and Korea are structured differently, and that can that set their local companies apart from their offshore global competitors. How will that play out in the future?
19:53 Do the local cultures in Asia affect how the global companies operate there?
22:28 India is a large market. Which companies – local or global – are doing well there?
26:14 Digital payments in China are really taking off.
27:26 The regulatory landscape for internet companies in Asia
31:12 How should investors think about the opportunity set in the light of increased regulations?
33:26 How relevant is geopolitical risk for investors in the Asian industry, given many of the companies are largely domestic?
37:06 An internet theme that investors should be thinking about over the next few years
40:08 If we use shopping as an example, how could that change?