Slides Simon Usiskin (IQU.com) @ CMC Games & Media
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This document discusses the value of intellectual property (IP) for games. It notes that while popular IP from TV shows or films could help drive interest, it does not guarantee a successful game. The right IP has to match the right game and audience. Licensing popular IP comes with high costs and leaves no room for failure. Licensors demand much while developers must ensure the IP works well within the game type and category. With the right IP, marketing costs can be reduced through brand awareness and organic interest, but the IP alone does not make a great game. Success depends on finding the perfect IP, game, and target audience combination.
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Slides Simon Usiskin (IQU.com) @ CMC Games & Media
- 1. “The value of IP: The key to success or the straw that break's the camel's back?” Cross Media Café 27th October 2015
- 3. Montage of films and games and books in background
- 4. “Content is king, distribution is queen…
- 5. “Content is king, distribution is queen…and she’s a bitch!”
- 6. The Dilemma
- 7. The Big Issues: Licensor v Licensee
- 9. COSTS OF LICENSE – NO ROOM FOR FAILURE
- 10. COSTS OF LICENSE – NO ROOM FOR FAILURE LICENSOR DEMANDS
- 11. GREAT IP = GREAT GAME “Just because it’s a hit TV show or big budget film doesn’t mean that it will help make a hit game. Certain IP also won’t work well in certain categories -- probably not smart to license The Boxtrolls for a social casino title. There’s a gaping chasm between great IP and good IP, and poor IP could actually do a game more damage than good. Hold out for what makes game magic, or move on” Dan Silberberger, EVP, Business at Venan Entertainment
- 12. COSTS OF LICENSE – NO ROOM FOR FAILURE LICENSOR DEMANDS GREAT IP = GREAT GAME RIGHT IP, RIGHT GAME, RIGHT AUDIENCE
- 13. “Just because it’s a hit TV show or big budget film doesn’t mean that it will help make a hit game. Certain IP also won’t work well in certain categories -- probably not smart to license The Boxtrolls for a social casino title. There’s a gaping chasm between great IP and good IP, and poor IP could actually do a game more damage than good. Hold out for what makes game magic, or move on” Dan Silberberger, EVP, Business at Venan Entertainment RIGHT IP, RIGHT GAME, RIGHT AUDIENCE
- 14. REDUCED MARKETING COSTS “What we’ve found is that the biggest impact of licensed IP is on the customer acquisition side, getting a more effective CPI. You get a lot more organic traffic, better search engine optimization in the app stores, more people coming into the game. You can spend the marketing dollars more efficiently because there’s already brand awareness.” Kent Wakeford, COO, Kabam
- 15. COSTS OF LICENSE – NO ROOM FOR FAILURE LICENSOR DEMANDS GREAT IP = GREAT GAME RIGHT IP, RIGHT GAME, RIGHT AUDIENCE REDUCED MARKETING COSTS
- 17. 254 267 264 274 278 271 262 255 131 140 142 153 147 139 142 142 19 20 24 48 95 136 154 171 63 55 50 44 38 32 26 21 102 98 96 94 92 90 88 87 9 12 18 18 18 17 19 25 2008 2009 2010 2011 2012 2013 2014 2015 Daily time spent per media platform (minutes) Other Connected devices (incl. set- top boxes, game console internet, etc) Radio Print (magazine and newspaper) Digital Mobile device Digital Desktop/Laptop TV
- 19. 19 Simon Usiskin Co-Founder & CCO, iQU Group simon@iqu.com
Editor's Notes
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- Since when did it become so hard to distinguish between the film Star Wars and the MMO Game SWOTR, Since when did it become so difficult to see the differences between the cartoon series Bugs Bunny and Zynga’s mobile game Looney Tunes… Since when did trailers for movies become used to help market games? Since we all started working in the entertainment industry Whether you are a game developer, musician, film director, writer – it does not matter as we are all competing for people’s leisure time. People come home from work and think what am I going to do tonight.
- How do we deal with the content v distribution challenge: “content is king, distribution is queen and she’s a bitch”
- Richard Armstrong, Founder of Kameleon “Content Is King, Then Distribution Is Queen” 2013 was the year for content creation and, more importantly, understanding its purpose; to build relationships with its audience. 2014 the planners hit back, making it the year for understating the power of distribution to ensure your content was getting the visibility it deserved. But with these added needs came the danger of haphazard and disjointed plans from silo-ed marketing teams. 2015 should be the year for marrying the two, creating a powerful, strong and successful union that sees a strong creative supported by an effective and well thought out plan behind it.
- Game developer thinking how do I make some noise? How do I get my game visible? How do I deal with possibly the biggest issue facing the game industry today: that of ‘discoverabaility’ How do I get some sort of ‘recognition factor’. 500 games per day released in appstore but people playing fewer So do I create my own or get someone else’s? Third-party IP owners all think their IP is far more valuable than it really is; They commanded high up-front fees and MG – now more rev share More history in online but It took a while for 3rd party IP in mobile but now it’s here to stay with notable hits like KKH, The Hobbit, and even 1st party branded games like Injustice and Star Wars Commander proving that it works. Zynga (the makers of Farmville) looking to IP is significant – licensing division. Why would they need it?
- There are so many aspects to this I have tried to select what I feel are the most pertinent and important
- How can you make a game work on 50% of revenue? Which has resulted in many games based on third party IP’s look poor Once you have the 10-20% license fee or MG to pay back plus platform costs etc. there is not much left to ensure a high quality production We have seen that many times: IP covering up for poor productions Legacy of ‘them and us’ – now game developers want to be involved from the very beginning of the creation of the IP with an IP you have less space to experiment and fail’ – ‘the curse of IP’ Also IP based games tend to make their money in a very short period of time rather than over a longer one. Once IP is burnt its burnt. This tends to be reflected in revenue stats: IP based games will feature in monthly or quarterly charts but not in annual longer time period Warner Bros are exception to the rule. LOTRO years long-term prospect
- with an IP you have less space to experiment and fail’ – ‘the curse of IP’ Also IP based games tend to make their money in a very short period of time rather than over a longer one. Once IP is burnt its burnt. This tends to be reflected in revenue stats: IP based games will feature in monthly or quarterly charts but not in annual longer time period Warner Bros are exception to the rule. LOTRO years long-term prospect
- IP holders are artists. Licensees are techs, analysts There is a cultural challenge Always concerned that the game developers version of their precious IP will be tainted by the developer's version of it. Do they understand the games production business? Do they focus on meeting short term goals like MG’s. The right licensor cares not only about how the game you are building blends in with the IP that they have been proudly helping to build over a number of years but also about helping you build the best end-product. Account management is key, and emotion can play just as an important role as the bottom line for some licensors. KISS for example can be know to be very sensitive Next Games and Lionsgate – Walking Dead: No Man’s Land – two months. Scopely – Walking Dead: Road to Survival plus Telltale Games - episodic MMO
- “Great games create great IP, not the other way around.” Having a great IP is only half the battle; you still need to build a great game. Kim Kardashian – whilst the IP has wide appeal, a zeigeist if you will. Do you play it because of her or because they have made a game that has made her engage with you; Kim reaches out to you. The cookie-clicker game is addictive
- Make sure you understand which audience group your IP is targeting. Have Zynga got the right adaptation of Looney Tunes right for their audience. The demographic target of the game skews very young… Asterix and Friends: whilst wide appeal re demograhic (but global?) but strategic nature of game execution alienates the younger audience. Dr. Who has similar problems finding its feet in terms
- For example, when KABAM decided to make the game based on movie Fast and Furious, they did user research and found out that target users will not be racing car fans but Fast and Furious movies fans who want to try car racing. Those insights lead the development and marketing from end to end. Is there a big enough user group that you can build a game business for: Size of target user group; spending capability, pay rate, ARPU.
- Simply put, it should lower the cost of marketing more than it shrinks the gross margin. Kabam: big believer in IP (Godfather) and now Star Wars: Uprising but actually Kingdoms of Camelot/Dragons of Atlantis Andrew Green from TinyCo Inc countered that building a game and creating a new niche often takes years to get "exactly right". He felt licensing was easier. Due to the cult following of ‘Family Guy’ Green confirmed they got 20 million installs without spending anything on UA.
- Andrew Green from TinyCo Inc countered that building a game and creating a new niche often takes years to get "exactly right". He felt licensing was easier. Due to the cult following of ‘Family Guy’ Green confirmed they got 20 million installs without spending anything on UA.
- So what does the future hold? Will it continue to be an industry where there are walled gardens surrounding the Licensor (The IP Holder) and the Licensee Why aren’t the different entertainment creators coming together? Netwars, which included a TV documentary, interactive web documentary, TV series, graphic novel app, audiobook and e-series, but said that was “more a critically acclaimed success than a financial success.” Defiance – Syfy and Trion Worlds
- And in a world where we have no idea on which platform we will consume our content how will IP be valued and how will negotiations be concluded? All we can see is that we are consuming more content and across a wider spectrum of platforms
- I expect that there will be a lot of success for developers who figure out effective ways to link the "out and about" mobile play experience with the "on the sofa" Apple TV experience in rewarding ways.” Then I look at what opportunities Quiplash, Mobcrash, Nvidia could offer Culturally don’t be scared of these guys. Streaming guys have far better connection with viewers than digital broadcasters. Very data driven: Netflix: House of Cards: people who watched: 1990’s original; liked Kevin Spacey; films directed by David Schafer. They even saw that there was a binger who watched all 13 episodes Alexis Bonte CEO of Erepublik Labs made a comment in response to an excellent Linked In article by Dan Silberberger “How to License IP for Mobile Games”. Alexis said “Tks for a great post Dan. Is there a person or company you would recommend to advise on the best IP for a company that hasn't done it before and where / how to get it?” Maybe Alexis should not be looking for the best license but instead should be looking for the next best TV or film production company, cartoon studio etc. to working collaboratively with to CREATE an IP and pitch it to Amazon, Netflix – even the wonderful BBC (Interactive Storytelling Editor) are at the forefront of commissioning the next ‘drama game’. They don’t hear anything from episodic MMO game developers though! So in Hollywood parlance will the next elevator pitch be something along the lines of: “so I have got this great idea: its World of Warcraft meets Batman meets The Bible where all the characters are inspired by One Direction” Thank you