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SingTel Mobile Gaming Strategy
 

SingTel Mobile Gaming Strategy

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    SingTel Mobile Gaming Strategy SingTel Mobile Gaming Strategy Presentation Transcript

    • SINGTEL PLAY SERVICES Driving returns for Game Developers Jaideep Dhanoa Digital Strategist http://jaideep.dhanoa.in
    • Under Threat Strong Competition Growth Opportunity The Mobile Data Ecosystem – Why Gaming? Source: A.T. Kearney analysis High Barriers To Profitability As traditional telco revenue streams are commoditized, the mobile gaming industry provides an opportunity for SingTel to grow through enabler services
    • Gaming Trends & Data Developer Challenges SingTel Opportunity Case Studies
    • Three Key Gaming Trends Free Games 80% of mobile game revenues generated by free games Consumers have gotten used to the idea of trying a game to the full before they decide to spend money. The days of low quality free games have passed as in-game spending business models have proven successful. Dynamic Business Models 70M more paying gamers compared to one year ago Now that games are services, the business model requires continuous balancing between value for the consumer and profit for the publisher. Monetization of the game should keep free gamers happy and provide room for spending by the “whales”. Global Marketplace $66B global game revenues in 2012, up 7% from 2011 Online connectivity allows companies to localize and launch games anywhere on the planet. To secure growth, emerging markets are a necessary part of any game company’s strategy. Source: www.newzoo.com
    • The Global Games Market | 2013E PER SEGMENT Source: www.globalgamesmarket.com
    • Source: www.newzoo.com $9bn +32% >500M >175MCONSUMER SPEND ANNUAL GROWTH MOBILE PLAYERS PAYING PLAYERS 33% 66%OF ALL* OF ALL* DOWNLOADS MONEY TO SMARTPHONES AND TABLETS WERE SPENT ON SMARTPHONES AND TABLETS WAS SPENT ON GAMES GAMES*BASED ON iOS APP STORE DATA IN 44 COUNTRIES & PLAYSTORE DATA OF 17 COUNTRIES Key Mobile Gaming Facts | 2012
    • Portable Gaming Revenue by Business Model 2013E 44% 51% 5% Prepaid Microtransactions (IAP) Advertising 2013 revenue on track to top $12B Microtransactions expected to grow from ~40% of total revenue in 2012 to 51% in 2013, primarily on mobile devices Source: IDC #240600 Prepaid revenue dominated by dedicated gaming handhelds such as the Nintentdo 3DS & Sony Vita
    • Installed Base of Portable Gaming Devices 2012 & 2014E 0% 20% 40% 60% Android iOS All other OS's Gaming handhelds 2012 2014 • The installed base of mobile devices used for gaming should rise from nearly 800MM in 2012 to over 1.2B by 2014, up 55% • Share of portable gaming on mobile devices expected to continue to grow at expense of gaming handhelds Source: IDC #240600 +10 pts +2 pts -1 pt -11 pts
    • The Global Games Market | 2013E Source: www.globalgamesmarket.com 200M 1300M 2200M 165M 540M 390M 85M 175M 215M APAC (Mature) China APAC (Others) Total Population Online Population Active Gamers Online population >20% YoY growth • APAC is the largest and fastest growing gaming market with $25.1Bn in revenues and 477M active gamers • Low internet penetration in developing APAC markets leaves substantial room for growth
    • Gaming Trends & Data Developer Challenges SingTel Opportunity Case Studies
    • Organizational Impact of Games as a Service Marketing User Acquisition, Distribution, Community Management Big Data, Business Intelligence, Product Strategy Operations Content build, Monitoring, Deployment, Cloud Management Infrastructure Scalability, Security, Efficiency, Content Management • Creative led-design team • Art and production pipelines • Client-side Engineering • Production management • Quality Assurance Traditional studio fundamentals New competences required to run GaaS What is the role of the publisher? Source: www.mediatonic.com
    • Responsibilities 3 years ago Developer Creative Build Localization Content Publisher Funding Platform User-data Distribution User Acquisition Product Strategy Post Launch (DLC) Community IP/Legal QA Source: www.mediatonic.com
    • Responsibilities Now Developer Creative Build Localization Content Retention Analytics Publisher Funding Platform IP/Legal ? User-data Distribution User Acquisition Product Strategy Post Launch (DLC) Community Devops QA Source: www.mediatonic.com
    • Localization an especially difficult challenge in APAC Monetization & Payment Discovery & Distribution Social & Mobile Games Cultural Adaptation Cultural adaptation requires market insight, not just language translation IP and Brand Protection Reclaim user base from unauthorized & pirated versions of your game Source: www.Yodo1.com
    • Gaming Trends & Data Developer Challenges SingTel Opportunity Case Studies
    • SingTel Resources Customer relationships Direct billing with 470MM subscribers Substantial footprint of customer-facing retail locations Proprietary customer data Direct to consumer marketing Preloading of devices In store promotions Bill inserts Email marketing Portfolio companies Yodo1 Kotagames Amobee Others Local know- how Understand the diversity and challenges of Asia Pacific markets Established relationships with various local partners Employ some of the best people within the region
    • Tactical Opportunities Reducing friction for developers Attracting great content for users Localization & culturalization Distribution and marketing channels Monetization Where does SingTel play?
    • Where to Play? Game Studios Game Publishers Game Platforms Mobile Gaming Industry Structure Game Studios design and develop games Game Publishers finance Game Studios and market their games Game Services provide capabilities for Game Studios to use while building their games Game Platforms distribute and monetize games with the end consumer
    • Game Studio Game Publisher Game Platform Game Services Required Capabilities Creative, Build, Content Biz Dev & Marketing Platform technology, Biz Dev & Marketing Niche technologies, Biz Dev & Marketing Timeline 4-6 months 3-6 months 1.5-2 years 9-18 months Risks ~$600k/game ~$20k/month ongoing opex Marketing costs Project finance costs $X - $XX million, lower if using white label service Extreme competition $X million investment Potential benefits Hit driven business Revenue share (10 – 50%) Revenue share of all platform transactions (10 – 30%) Lower margins, more consistent revenues Benchmark GungHo King Kabam Supercell Zynga Orange & Gameloft, Deutsche Telekom & SEE Games, Telefónica & EA GameTanium – Exent d game – NTT Docomo Kakao, Line & WeChat Mobage - DeNA Shield – Nvidia Ouya Metaps Pole To Win HoneyTracks GameAnalytics Bongo TapJoy Where to Play?
    • Game Services as the Recommended Model •Leverage local know-how & relationships •Learn from Yodo1 investment •Address a major challenge for game developers targeting diverse APAC markets 1. Localization •Leverage unique marketing channels & customer relationships •Instant revenue stream for pay-per-install app advertising •Reduce customer acquisition costs for game developers 2. User Acquisition •Leverage proprietary customer data to help target & retain high ARPU users 3. Customer Analytics •Frictionless payments through carrier billing •Essential for game profitability 4. Monetization Potential service offerings
    • Why Game Services? 1. Leverage existing strategic assets and capabilities rather than develop new ones 2. Participate in the mobile gaming value chain without entering the game development space 3. Establish a customer base of game developers Learn & build capabilities in the gaming industry 4. Grow these services into adjacent opportunities 5. Develop a long-term, sustainable revenue stream
    • Under Threat Strong Competition Growth Opportunity The Mobile Data Ecosystem – Why Gaming? Source: A.T. Kearney analysis High Barriers To Profitability As traditional telco revenue streams are commoditized, the mobile gaming industry provides an opportunity for SingTel to grow through enabler services
    • Gaming Trends & Data Developer Challenges SingTel Opportunity Case Studies
    • Case Study – GameTanium & Verizon Other GameTanium partners: GameTanium platform launched on Verizon Wireless in July 2012 Offers Android customers access to unlimited game play of 200+ Android games, from more than 90 publishers and developers worldwide $4.99 per device/month, with no advertisements After free three-day trial period, 1 in 4 users of the trial become paying subscribers Nearly 2/3 of customers rate the service as either “good” or “excellent.” Some of the top games have been Plants Vs. Zombies, Chuzzle, GT Solitaire, and Fruit Ninja Source: www.exent.com
    • Case Study – d game (NTT Docomo) • An Android app store just for games in the Japan market • At launch, 15 social gaming titles including the latest original games from DOCOMO • Publishers included Namco, Konami, SEGA and Square Enix • Free-to-play, with some games charging a monthly fee • Variety of payment methods: DOCOMO’s dcoin virtual money service, “docomo points” earned by DOCOMO subscribers, and carrier billing launch in November 2012 • d game android app store localized for China via China Mobile partnership • 20 titles at launch including non-game content such as wallpapers • Publishers included Capcom, Konami, Tecmo Koei, Square Enix and MTI • Localization carried out by D2C China, a joint venture of DOCOMO, Dentsu and NTT Advertising • Distribution under license by Guangzhou Daxiang Info-tech launch in March 2013 • Traction & market share thus far limited • Google Play & Apple App Store continue to dominate Japan app store market
    • Case Study – Yodo1 & Ski Safari Light Localization Local Ad Networks Android Distribution Original Version Yodo1’s China Edition New China Content 35,000 Downloads in 8 months $69/Day The Result: Total Active Users 7,000,000(3 Mths) 225X Increase1,200,000(1 Mth) Average Daily Revenue $7,800 USD 220X Increase$7,500 USD Localization done “right” provides substantial opportunity to drive returns Yodo1’s adaptation of the Western developed Ski Safari game for the Chinese market Source: www.Yodo1.com