13 Ravi Mehta -- igbos n_

2,146 views

Published on

Digital Goods, The Future of Online Communities

Published in: Technology, Real Estate
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,146
On SlideShare
0
From Embeds
0
Number of Embeds
13
Actions
Shares
0
Downloads
16
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

13 Ravi Mehta -- igbos n_

  1. 1. REAL VALUE FROM VIRTUAL GOODS Ravi Mehta VP, Publishing - Viximo [email_address] - Email www.virtualgoodsinsider.com - Blog Proprietary & Confidential
  2. 2. WHAT IS A “VIRTUAL GOOD”? <ul><li>VIRTUAL GOODS INDUSTRY </li></ul>Proprietary & Confidential As virtual goods evolve, they’ll grow to include all digital media including music and video
  3. 3. VIRTUAL GOODS ARE GENERATING VERY REAL REVENUE FOR PIONEERING COMPANIES <ul><li>VIRTUAL GOODS INDUSTRY </li></ul>Proprietary & Confidential China’s largest Internet portal generates 65% of its $500M revenue from virtual goods In 2005, this Korean gaming giant report ed $230 million in revenue with 80% generated by in-game items Korea’s Facebook generates $160M revenue annually – entirely from virtual goods Facebook’s Gifts service has generated $15M since February 2007 The youth oriented dating site generates 40% of its revenue ( $6-7M ) from sale of virtual flowers at up to $10 per flower This virtual world with over 75 million users globally generates $60M annually from virtual goods This niche social community for pet owners has had over 50 million giftings by its 500,000 users since its gifts program started 2 years ago NORTH AMERICA EUROPE ASIA MindArk’s virtual world, Entropia Universe, holds the 2008 Guinness World Record for “Most Expensive Virtual Object”, a space resort that was sold for $100,000
  4. 4. WHY DO PEOPLE SPEND REAL MONEY ON STUFF THAT ISN’T “REAL”? <ul><li>VIRTUAL GOODS INDUSTRY </li></ul>Proprietary & Confidential <ul><li>A $100 bottle of Diaka Vodka which is colorless, flavorless, and made from $2 in grain </li></ul><ul><li>A $97,500 Piaget watch that contains a few ounces of precious metal and tells time (less accurately than your cell phone) </li></ul><ul><li>A $100,000 piece of “virtual” real estate that can be traded on a highly liquid market and generates a 20% annual return (2x most stocks) </li></ul>POP REALITY QUIZ Which of the following is most “ real” ? A Stanford University research study has shown that people aren’t wired to distinguish between “real” world stimuli and digital stimuli: Study participants showed the same tendency to smile back regardless of whether smiled at by a real person or a digital avatar. Study participants felt the same feelings of elation when receiving a physical gift and when receiving a “virtual” gift. Can’t relate? Put yourself in the shoes of someone who spends 20-50% of her waking hours immersed in an online community. How real and tangible would that community be to you?
  5. 5. WHAT VALUE DO PEOPLE GET FROM VIRTUAL GOODS? <ul><li>VIRTUAL GOODS INDUSTRY </li></ul>Proprietary & Confidential
  6. 6. VIRTUAL GIFTS PROJECT THEIR VALUE ONTO SOCIAL GESTURES AND ENRICH COMMUNITES <ul><li>VIRTUAL GOODS AND SOCIAL NETWORKING </li></ul>Proprietary & Confidential
  7. 7. CASE STUDY: DOGSTER <ul><li>VIRTUAL GOODS AND SOCIAL NETWORKING </li></ul><ul><li>Members spend between $0.25 and $4.00 to send virtual gifts </li></ul><ul><li>Dogster’s 500,000 mainstream members have sent over 50 million gifts in the past two years </li></ul><ul><li>Gifts sent for friendship, support of sick/dying pet, acknowledgement of community contribution, to reciprocate for gift given, “just because” </li></ul>Proprietary & Confidential

×