Nima Pourshasb Presentation
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Transcript of Nima Pourshasb Presentation
Digital Media PropertiesDigital Media PropertiesLessons from Social Games to Monetize their Fanbases
Nima PourshasbVP, Strategy & Corporate [email protected] December 1st, 2010
Live Gamer OverviewLive Gamer Overview
Micro‐transactions: Complete solution for virtual goods and digital content e‐commerce
Billing & payments, virtual currency & e‐wallet, storefront, merchandizing, analytics, player‐to‐player trading
Offices in NYC, Palo Alto and Seoul
90 publishers, 150 titles
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Focus on online games. Now moving to other digital entertainment
Digital Entertainment MT opportunity is still nascentnascent
US Digital Media & Entertainment gwill be $134BN by 2014 (PWC)
Music Sports TV/Cable PrintMusic, Sports, TV/Cable, Print
Any IP with fan base community
Now at inflection point with respect to microtransactions and virtual goodsvirtual goods
8 lessons digital media properties
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have learned from observing social gaming
1. They like what they see…1. They like what they see…
Economics
‐ Revenue run rate
‐ COGS of virtual goods
f $‐ Upfront investment: $120K to develop Farmville
‐ Derisking a content business
Accretive revenue stream
Existing revenue streams are struggling
Source: Barclays Capital 2010
…and they know they need to move in that direction direction
Digital transition continuesg
2. Don’t need to make the “next Farmville”2. Don t need to make the next Farmville
Initial wave of M&A activity targeted at purchasing game developers
‐ Disney buys Playdom ($763MM)
‐ Warner Brother buys Turbine
‐ MTV buys Social Express
Light game mechanics and dynamics
“Gamify it and they will come…and they will stay…and life will be better”
Source: BunchBall
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better
3. Their fan communities already display behaviors that drive virtual goods commerce behaviors that drive virtual goods commerce…
‐ Competition: Who is the biggest fan?
‐ Gifting / enhanced communicationg /
‐ Self‐expression
‐ Insatiable demand for content
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… and the social gaming framework fits directly into the online fan community experienceinto the online fan community experience
EASY TO PAY COMMUNITY COMPETITION
CLEAR GOAL
INSTANTGRATIFICATION
S SSUPER USER
THE 1% THAT PAYS
SOCIALIZE SELF-EXPRESSION
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4. They already have the whales & the super usersusersAlready invested in: user acquisition, user retention, engagement, transition from passive to active to paying
Whale: Bonjovi VIP package: $1,750j p g $ ,
Conversion to paying users > 1‐5%
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5. They have high quality content
Archive libraries, cut scenes, behind‐the‐scenes, interviews
Content is dynamic: e.g. sports y g presults, tours, new albums, new editions, new season
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6. They get e-commerce
Merchandizing & sales optimization
Importance of payment methods
Familiar with reporting challenges (e.g. artist royalties)
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7. They really like earned virtual currencies
Strong incentive rewards for fans
Long list of desired behaviors
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8. They know that fans will follow them to the experienceexperienceMarketing channels: Email groups, fan websites, PR, events
Interaction with the IP is significant gpart of the experience
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New wave in MTX: Monetization of fanbases
Just starting
Opportunity for entire social gaming ecosystem: gamification, microtransactions, virtual goods, game design and development, , g , g g p ,advertising
Important implications on market size and definition of social gamingImportant implications on market size and definition of social gaming
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Thank you!
Nima PourshasbVP Strategy & Corporate Development
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VP, Strategy & Corporate [email protected]