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Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 1
Gaming strategies for TV
operator...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 2
2000 2004 2007 2010 2015
Freemium...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 3
Still some portal efforts alive
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 4
2014 updates
• Social TV apps, pa...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 5
Casual gaming on STBs
• Casual ga...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 6
What is cloud gaming?
• Real gami...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 7
The up-side of cloud Gaming
• Wel...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 8
The down side of cloud Gaming
• T...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 9
Cloud Gaming on an IPTV
platform ...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 10
Why freemium isn’t Cloud-
compat...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 11
[tbb*] thebrainbehind
Management...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 12
[tbb*] thebrainbehind
Management...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 13
[tbb*] thebrainbehind
Management...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 14
[tbb*] thebrainbehind
Management...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 15
[tbb*] thebrainbehind
Management...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 16
[tbb*] thebrainbehind
Management...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 17
So where is the room to innovate...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 18
Where can TV operators
innovate?...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 19
OTT opportunities are increasing...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 20
Thank you for listening
Now lets...
Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 21
About CTO innovation Consulting
...
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Gaming strategies for TV operators Updated presentation

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In the age of OTT, where content usage isn't taking off for everyone, can gaming come to the rescue of your OTT strategy?

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Gaming strategies for TV operators Updated presentation

  1. 1. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 1 Gaming strategies for TV operators Take 2 Is there an opportunity for gaming on TV or nott? March 2014 - update of 2013 presentation
  2. 2. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 2 2000 2004 2007 2010 2015 Freemium Apstore Game maker Operator
  3. 3. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 3 Still some portal efforts alive
  4. 4. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 4 2014 updates • Social TV apps, part of the interactive future of TV, are dead. What does that say about gaming on TV? • With over 150 M active gamers in Europe, over 50% of game is time spent online1 • Gaming on TV really does require “lean forward” • Gaming part of the overall interactivity strategy including loyalty programs e.g. collecting points • Casino gaming moving to Android and iOS, but the smart TV market still too much of a jungle – Betting is a regulatory issue 1: ProSieben.Sat.1
  5. 5. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 5 Casual gaming on STBs • Casual games that can be supported on todays TV platforms require massive subscriber bases to generate any revenue, otherwise they’re just “me- too”. • French IPTV market is unique – Native STB games are still alive but barely kicking – Games come ready loaded and in Operator’s Apstore – Continued lack of public figures on profitability means it cant’ be great, but new games are still coming out
  6. 6. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 6 What is cloud gaming? • Real gaming requires dedicated hardware not yet in TVs • Here it’s in the Cloud, streaming video to a thin client. • Requires low latency networks! • Some history – Demo by G-Cluster in 2000 (commercial launch by SFR in 2010, and Orange in 2012), now descending from the pinnacle of Hype  Into trough of disillusionment? – OnLive (announced 2009, launched 2010, almost went under in 2012, now limping back) – Gaikai integrated into PS4 – New platforms still being launched, dedicated Chinese platform … • Technology is here although a major new improvement is still expected with Nvidia’s Kepler architecture.
  7. 7. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 7 The up-side of cloud Gaming • Well marketed free trials are a common way of recruiting players into a pay services – learn from the mobile space. • Cloud gaming subs also consume on demand and subscription content • Cloud gaming is well suited for A-B testing • TTM: Cloud gamers get immediate access to new games • Porting games can be a nightmare, Cloud Gaming’s a dream
  8. 8. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 8 The down side of cloud Gaming • The key to commercial success is elusive, although some claim to have found it… • Streaming games is not suited to the prevalent Freemium model where 90-95% of players never pay anything (see next slide) • Need to providing CPE to improve ARPU significantly • Subs behave the same with Cloud Gaming and SVoD in terms of churn / stickiness :o( • The success of PS4 and XO shows that living room consoles still haven’t given up the fight
  9. 9. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 9 Cloud Gaming on an IPTV platform with a few million subs 0 k 2 k 4 k 6 k 8 k 10 k 12 k 14 k 0 k 10 k 20 k 30 k 40 k 50 k Premium packs Mid-range packs Entry level packs Total transactions 100+ games
  10. 10. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 10 Why freemium isn’t Cloud- compatible • For an operator with 1M subs, say 10% are gamers  100k • Within 3 years, expect a max 10% of gamers to pay  10k • If Delta ARPU from gaming is say 5€ per month, operator gets 30% of 10k * 5€ * 12 per year  Less than €200K per year per million subs • Scalability is key: smaller operators will find it hard to support the 90-95% of gamers that don’t pay anything.
  11. 11. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 11 [tbb*] thebrainbehind Management Consultants Onlive Home Screen This is the start screen for the service. This is where you come when you login. Best Practise Example: Onlive, USA Screenshots
  12. 12. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 12 [tbb*] thebrainbehind Management Consultants Onlive Marketplace Find games to play by genre, release data etc. or just search Best Practise Example: Onlive, USA Screenshots
  13. 13. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 13 [tbb*] thebrainbehind Management Consultants Onlive Game Details Get all the details of the games before you pay for them Best Practise Example: Onlive, USA Screenshots
  14. 14. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 14 [tbb*] thebrainbehind Management Consultants Onlive Arena Watch, rate and trash-talk anyone playing in the Onlive system Best Practise Example: Onlive, USA Screenshots
  15. 15. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 15 [tbb*] thebrainbehind Management Consultants Onlive Brag Clips Watch 10 second clips of cool happenings from other peoples game play Best Practise Example: Onlive, USA Screenshots
  16. 16. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 16 [tbb*] thebrainbehind Management Consultants Onlive Multiview Keep an eye on your friends playing other games while you play Best Practise Example: Onlive, USA Screenshots
  17. 17. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 17 So where is the room to innovate for OTT Gaming?  Big gaming companies (EA, Activision, Valve, … ) are bent on technology innovation for greater realism requiring more and more power but not innovating in gameplay.  Innovation in gameplay has come from smaller games like Angry Birds or Farmville.  New game paradigms with big screen / companion screen interaction can be invented for OTT TV.  Since 2007 the Internet has become integral part of gaming, this must be factored into TV company’s gaming plans.  Nintendo & Microsoft proved: still room for innovating input  A space is opening with retail devices and the big TV screen.
  18. 18. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 18 Where can TV operators innovate? Costofbuildinggame Time
  19. 19. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 19 OTT opportunities are increasing but I’m not holding my breath • Technical challenges: – Play-along titles must scale at peak to millions of active users – Direct return channel  every transaction must be handled in real-time (harder than SMS). – Big Data is involved and access to scalable server farms will be an advantage: • Best for either huge TV operators with massive data centers • Or operators having started a transition to the cloud • Smartphones and tablets will become controllers • Gaming could make the TV screen dumb again. • Beyond iOS & Android, window closing for other OTT PFs
  20. 20. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 20 Thank you for listening Now lets talk!
  21. 21. Gaming strategy for operators London March 2013 & 2014 Benjamin Schwarz bs@ctoic.net - 21 About CTO innovation Consulting www.ctoic.net CTOiC offers: • Strategy consulting • Disruptive business modelling • Quality of Experience • RFx management, Innovation • Audit & Risk analysis • Scenario planning • Int’l benchmarks • Training, writing, PR Network OperatorsContent operators Technology providers CTO Innovation Consulting Customer List

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