G@S: Business Modelling Research
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G@S: Business Modelling Research

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Valérie-Anne Bleyen, Heritiana Ranavoison, Marlen Komorowski, Olivier Braet

Valérie-Anne Bleyen, Heritiana Ranavoison, Marlen Komorowski, Olivier Braet
iMinds - VUB - SMIT

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G@S: Business Modelling Research G@S: Business Modelling Research Presentation Transcript

  • Business Modelling research Valérie-Anne Bleyen, Heritiana Ranavoison, Marlen Komorowski, Olivier Braet 1
  • Business modelling research results 1. Best Business Practices 2. Business Model Case 23/12/2013 2
  • 1. Best Business Practices 3
  • Market research analysis  Global market view  Small, scattered retail market for educational games  Few publicly available information on online platforms  US game-based learning market reached USD 231.6 million in 2010. The growth rate is 12.3% and revenues are predicted to reach USD 413.2 million by 2015  Mobile might be the new frontier with education apps as the 4th most represented category in Apple's App Store, with 24,727 programs (in 2010)  In Flanders, main competitors are online platforms providing free access to simple (mainly flash) games 23/12/2013 4
  • Industry sample  20 games analysed & 5 “best” practices identified  English language; Language and maths most common  Analysed features  Main characteristics, incl. popularity  Organisation, Technical, Financial and Service design characteristics  Focus on the revenue model     Pay-as-you-go Freemium Ad-based (Cross-)subsidies 23/12/2013 5
  • Level of centralisation and revenue model Games that score high on centralised control: direct revenue model Games that score low on centralised control: indirect revenue model 2 outliers: BBC Bitesize Funbrain 23/12/2013 6
  • Mobile games sample  Sample of educational apps available  On iOS Phone: Top 10 Paid + Top 10 Free + Top 10 Grossing (Nov 2012) => 15 apps  2 main revenue forms  Pay-per-download  Low pricing: $0.99 for Stack the States to $3.99 for Bubble Guppies  Freemium model  Free download, paying access to certain features (e.g. the seller „Kids Games Club‟)  Subscriptions and advertising are more rare  Hybrid models interesting for mobile game  A few games belong to both the top 10 Grossing and the top 10 Free (e.g. Lumosity Brain Trainer, Paint Sparkles Draw) 23/12/2013 7
  • Insights from other cultural industries  Music industry  Download-to-own; Freemium streaming (e.g. Spotify); Advertising-based free streaming services (e.g. YouTube)  Link between centralisation and revenue model  Lower centralisation <-> advertising (e.g. YouTube)  Higher centralisation <-> direct revenue models (e.g. iTunes, Deezer)  Newspaper industry  Ad-funded free (Daily Mail); 100% pay wall (The Times); Freemium (WSJ); Metered (FT & NYT); Pay-per-use (Kenosha); National pay wall (Piano media)  Crowdfunding  Occupying a niche is important to stand out internationally 23/12/2013 8
  • 2. Business model case 9
  • Challenge  Taking into account the different market opportunities that exist for the different industrial parties  Construct a number of business model cases from the point of view of the different industries, with a stress on for-profit business cases for the private partners, and non-profit 'organisational cases' for the public partners involved.  SIMBU (SIMulate your BUsiness)  Method that allows stakeholders/business partners to discuss, simulate and agree upon a business model 23/12/2013 10
  • Key steps in SIMBU 23/12/2013 11
  • Business model simulations  Best scenario: Pay-for-Access model  Not „Pay-for-Game‟ or „Public-Funding‟ model  B2C customers‟ willingness to spend highest  A) subscription fee of EUR 5 / month / child  B) Average microtransaction of EUR 2 / m / child  = €84/Y/child in retail market  B2B willingness to spend: €2/Y/child  Payment service provider processing fee of 2%  360.000 Flemish lower grade schoolchildren => low (12,5%), middle (25%) and best case (50%) scenario 23/12/2013 12
  • Optimistic scenario: 180k students 23/12/2013 13
  • Pessimistic: 45k students 23/12/2013 14
  • Realistic: 90k students 23/12/2013 15
  • Pessimistic B2C + Optimistic B2B 23/12/2013 16
  • Optimistic B2C + Pessimistic B2B 23/12/2013 17
  • Conclusions  Pay-for-access model most financially attractive  „Pay-for-Game‟ or „Public-Funding‟ model each have own drawbacks  Games that can be updated in a modular fashion most technically logical (browser-based & mini-games)  B2C customers‟ willingness to spend offers much better scenario‟s than B2B scenario  Local market for educational games too small if one wants high quality local content 23/12/2013 18