Burlywood EIG presentation 2012 pdf

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Andrew Burnett's keynote presentation to EiG 2012 in Barcelona.

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Burlywood EIG presentation 2012 pdf

  1. 1. Time to Bet The World again ? Andrew Burnett Barcelona October 2012 1
  2. 2. PAY2PLAY DIGITAL ENTERTAINMENT“New technology, new business models and newregulation will power a new entertainment industry forall of us. We call it Pay2Play” Sir David Michels 2
  3. 3. OUR THESIS• 41% of internet user play games at least once a week• Millions of players; a small minority that monetises big.• Monetise, retain, re-energise, build LTV• Acquire and build ROI.• Invest wisely and exit efficiently. 3
  4. 4. WHAT IS PAY2PLAY ENTERTAINMENT ? Payment Game Play Reward• Social Gaming : games that connect directly with social network profiles and largely depend on social platforms for distribution.• Mobile Gaming : mostly, though not exclusively, casual games (simple gameplay that can be learnt in minutes) for smartphones, tablets, handheld game consoles and other mobile internet devices.• Cash Gaming : Paid participation games with an element of luck in the gameplay and cash prizes frequently greater the cash amount paid to participate.• Pay 2 Play Entertainment : Includes casual games, online games, skill games, bingo, sports betting, casino games, exchange platforms and all forms of gamification. 4
  5. 5. THE PAY2PLAY CONVERGENCE MODEL REACH ENGAGE MONETISE RETAIN Signups Traffic Daily Active Users Social gaming build reach and open new markets Unique Visitors SoMoOn Bounce Rate Signup conversion Play 4 Free Monthly Active Users Forums Mobile platforms grow engagement Pages viewed Custom downloads Ease of payment Retention bonuses Average Booking per User Customer Service Subscriptions Re-ignition marketingCash Gaming Cash gaming monetises and drives retention Micro transactions Registration to Depositor CRM Programme VIP programmes rate Cross-selling across all platforms and channels Brands become key 5
  6. 6. THE PAY2PLAY ENTERTAINMENT MARKET The Pay2Play Entertainment market size• Fastest growing digital industry in the 125 world 15% CAGR• 15% CAGR; 3x faster than the global 100 52.8 M&E industry 47.1 43 Other 75 $121.00bn 38.3 $ billion 34.1 Newspapers 50 $82.00bn 31.1 Television subscription 49.3 $290.00bn 44.8 40.3 36 25 30.3 Filmed Entertainment $97.00bn 20.7 Consumer & Educational Books 0 $116.00bn 2011e 2012e 2013e 2014e 2015e 2016e Digital Pay2Play $102.00bn SoMoOn Cash Business to Business $180.00bn Source : Citigroup, PWC, Xyologic.com, Zynga S1, Inside Networks, Gartner, NPD Group, Euromoniter, GfK, Flurry,, Evercore Group L.L.C. Research, Dec 2011; Gaming Capital, Morgan Stanley, Think Equity, Burlywood estimates 6
  7. 7. THE LONG TERM GROWTH TRENDS• Growth in global consumer spending : The rise of the Middle Class in emerging markets and substitution spending in the developed markets.• Technological advances. Smartphone shipments outstripping PCs.• New digital business models. Virtual goods market to double by 2014• The separation of digital from physical media. New regulations and new market growth opportunities. 7
  8. 8. TECHNOLOGY AND REGULATION DRIVE GROWTH• Disruptive technologies emerge : Tablets, Smartphone, iTV 2.0. Windows share of internet devices barely 50%• Balkanisation of the internet. Apps beat web, walled garden, thoughtful content. Index search now down to 50%• Wide scale global platform extension through social media platforms.• Regulation of cash gaming throughout the world, especially USA. The un-demonisation of gambling• Easier and more profitable routes to market with regulation, straight-forward payment channels, and higher-rated earnings. 8
  9. 9. TRANSFORMATIONAL MONETISATION• A massive addressable market : 1.6 billion estimated social network users by 2014; 3% would treble the digital cash gaming market .• Lower friction and acquisition costs.• Adoption of best practices : • Ease of payments. • Player lifetime analysis and player profiling • Fraud detection and back customer relationship programs. 9
  10. 10. BURLYWOOD CAPITALMark Blandford Andrew Burnett Sir David Michels Neil Goulden 10
  11. 11. CONCLUSION• The world’s fastest growing media and entertainment sector• Transformational profit growth for the best operators.• Our name for a new era : Pay2Play digital entertainment.• New sources of investment.• The Third Epoch. 11
  12. 12. Thank You 12

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