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The leading global provider of secure ondemand technologies

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Title: The leading global provider of secure ondemand technologies


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The leading global provider of secure on-demand
technologies solutions for games edutainment
software
  • By Ari Last
  • Business Development
  • 2004December

3
What is Games-on-Demand?
4
Commercially Deployed GoD Services
Europe
ROW
North-America
4.7M BB
2.1M BB
5.5M BB TurnKey
France
3.4M BB
2.5M BB
890K BB
1.7M BB
1.2M BB
365K BB
5
What is causing interest in games?
  • A huge market opportunity
  • 2003 video games market 28.5B
  • Bigger than music or movies
  • Consumer migration to online delivery of paid
    entertainment content Forrester predicts 33
    drop in music CD sales by 2008
  • Broadband uptake is soaring
  • Games are NOT like Music or Movies
  • Recognize P2P threat opportunity
  • Can implement anti-piracy solutions
  • Market Expansion Opportunities
  • New audiences
  • New business models

6
Online Gaming Market Overview
  • Gaming Technologies
  • Web
  • Internet-purchase only
  • PC CDROM
  • Xbox live! (?)
  • Future console, PDA
  • MMOG
  • Gaming Technologies End-Devices -
  • PC
  • Console (Proprietary, high royalties)
  • Set-top boxes (still not here)
  • Home Entertainment Centers

7
The timing is great for PC games services
  • The industry is facing critical times
  • 11 decline in unit sales from 02 to 03 (NPD)
  • 30 decline from 01 to 02 (ESA)
  • 14 decline in revenue from 02 to 03 (NPD)
  • 03 US PC Games 1.2B, 52.8M Units (ESA, NPD)
  • Concentration of purchasing on smaller number of
    titles
  • Revenue per purchase is decreasing
  • Game development costs are increasing
  • Higher reliance on hit titles
  • But end of a console generation cycle

8
The timing is great for PC games services
  • Publishers have a great opportunity to
  • Find ways to increase revenue per unit
  • Encourage repeat sales/build relationship
  • Better leverage investment in brand
  • Open additional channels
  • Provide prolonged game life
  • Provide a console-like experience (vs. PC-like
    experience)
  • Reduce risks

9
Broadband Service Provider Benefits
  • Increased ARPU
  • Decreased churn
  • Increased adoption rate
  • Service differentiation
  • Leverage network justify broadband
  • Dont succumb to piracy and turn games into huge
    bandwidth hogs that pay nothing
  • Ability to create bundles, promotions
  • Increased e-commerce revenue
  • Why are PC games more attractive than consoles?
  • Ability to control user experience and branding
    on the end-user device
  • Tie the user to the BSP, not just on the access
    service

10
Publisher Benefits
  • Reach new markets
  • Women, non-gamers
  • Extend product life cycle
  • Leverage back-catalog
  • Lower risk of new title launch
  • Low-cost distribution
  • Create new release windowsNY Times, August 22,
    2004
  • To combat the problem, publishers are again,
    in Hollywood fashion scrambling to develop
    secondary revenue streams. One is online games
    selling subscriptions to play on the Internet

11
Publisher Benefits
  • Develop end-user relationships
  • Direct marketing campaigns
  • Optionally establish direct service relationships
  • Improved DRM and security
  • Leverage existing new business models
  • Subscription, purchase, rental, try/buy
  • Up-sell
  • Overcome the vicious circle of retail becoming
    ineffective for PC games

12
Value to End Users
  • Great dollar value
  • Access to dozens of games for the price of a few.
  • Package includes something for everyone.
  • Ultimate user experience
  • Easy pay-and-play
  • Resolve compatibility and conflicts
  • Big games faster delivery and time-to-play, no
    install
  • No need to be an expert casual audience
  • CD-key, multi-player support
  • CD play equivalent
  • Patching
  • Reduced buyer risk
  • Users can try games and find the ones they like

13
Watch for these GoD service features
  • Delivery
  • Security
  • Usability
  • Comfort
  • Flexibility

14
GoD Streaming Delivery
  • Game can execute after brief initial download
    (about 5-20 of game)
  • Just-in-time delivery of game data, based on
    prediction algorithms.
  • Remainder of game is streamed in the background
    to the end-user PC, based on predictive profiling
    algorithm that maintains original game experience
  • No source code needed no adaptation work
    required from the game developer

15
GoD Security
  • Only a partial copy of the game is actually
    delivered (unlike music/video)
  • Full protection on all game files, not just the
    executable
  • Support for any publisher-required CD media
    protection or Gold Master
  • Enables all standard DRM plans Try, Rent,
    Subscribe, Buy

16
GoD Usability
  • No installation click-and-play
  • HW/SW detection / conflict resolution
  • Disk space management
  • Local cache is managed based on same profile used
    to deliver game
  • Same user experience as if the software is fully
    installed (over 1000 games tested)

17
GoD Comfort
  • GoD has been adopted by a majority of leading
    BSPs, as well as leading consumer portals and
    games publishers
  • Games are provided to GoD services by almost all
    the leading game publishers
  • Largest number of games enabled (2,000 ) in
    multiple languages
  • Service designed to match individual business
    requirements

18
GoD Flexibility
  • All business models are supported, including
  • Subscription
  • Purchase
  • Rental
  • Slots
  • Membership
  • Try-before-you-buy
  • Multiple models mean a service provider can pick
    the one most suited to its strategic goals

19
Subscription vs. Download Services
20
Profile of a Successful Service Provider
  • Year 1 achievements
  • 2.5 - 3 penetration rate of broadband
    subscribers
  • 8 - 10 usage in bundled model
  • 15/month subscription
  • lt8 churn rate
  • Gaming users are 75 less likely to churn than
    regular broadband subscribers
  • Life time value of a customer gt 150
  • Acquisition costs lt 10
  • 65-80 conversion of 2-weeks trial
  • Avg. number of monthly hours spent 30
  • Take up rate of 0.4/month or more

21
Bell Canada GamesMania
22
Yahoo! Games on Demand
23
RCN InterAction
24
Thank you!
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