bundling – mobile & social innovation for 2017 | andrew sheppard
Post on 13-Apr-2017
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2017INDUSTRY
INNOVATIONSPresented by:
Andrew Sheppard, CEOGREE International Entertainment, Inc.
San Francisco // Melbourne // Berlin
2016HOW DID WE GET HERE?
EROSION OF THE MIDDLE CLASS
“Middle” has neither the scale benefits nor the agility of smaller teams, and has not participated in growth &
maturity of the mobile platform “Rich” receive recursive benefits from scale, brand, ability to leverage
top IPs“Poor” can continue to innovate with small teams, access platform
featuring
MOBILE GROWTH ELUDES “MIDDLE”
*AppAnnie Estimates, US Revenue in January 2017
4 KEY TRENDS
1. CREATIVE EXITS
2. VERTICAL PARTNERSHIPS
3. RISE OF INTERNATIONAL MARKETS
4. BUNDLING
1.CREATIVE EXITS
2. VERTICAL PARTNERSHIPS• From audience to IP holder: how should developers build hits
today?
• Vertical partnerships can come in the form of: •Moving older games to low cost developers•Co-developing•IP Partnerships•For Hire Partnerships
• This can impact a number of roles within a company including: • Publishing• UA• Brand/Franchise Marketing• Live Ops• PR• Platform Relationships
• As a result you’ll see companies outsourcing development without losing revenue
• Development• Art• Engineering• Product• Design• Product
Marketing
3. RISE OF INTERNATIONAL MARKETS
COST OF LIVING
BERLIN65%
WARSAW41%
SHANGHAI54%
DUBLIN80%
SAN FRANCISCO: 100%
DIFFERENCES BETWEEN INTERNATIONAL MARKETS
• Content approvals are required
• Must partner with a Chinese company & only with government approval
• Hands out $4Bn in government subsidies
• SR&ED (“SHRED”) tax breaks - one of the biggest sources of government cash for private sector innovation & research
• Hiring subsidies more common
• Favor the conversion of temporary contracts into open-ended ones, e.g. reactivating long-term unemployed, supporting groups at risk of labor-market exclusion, etc.
“There’s only two ways I know of to make money –
bundling and unbundling.”
~ Jim Barksdale, VC, Netscape CEO
4. BUNDLING & UNBUNDLING
A strategy that joins products or services together in order to sell them as a single combined unit.
BUNDLING:
UNBUNDLINGThe process of breaking apart a product or service into smaller parts.
ECONOMIC WAVES OF BUNDLING & UNBUNDLING
BundlingBroadcast → Cable
Bundling45s → LPs
UnbundlingCDs → MP3s
BundlingiTunes → Spotify
UnbundlingCable → Netflix → YouTube
BundlingICQ → AIM → Facebook
UnbundlingFacebook → Messenger
• Shooting / Combat
• Driving / Racing
• RPG
• Storytelling
• PvP / Multiplayer
BUNDLING IN AAA GAMING
TOP AAA GAME … incorporates multiple gameplay styles
UNBUNDLING IN MOBILE GAMING
• Shooting / Combat
• Driving / Racing
• RPG
• Storytelling
• PvP / Multiplayer
TOP AAA GAME … deconstructed for mobile
BUNDLING CASE STUDY
SimulationMatch 3
2015*20M Installs$30M revenue
2016*100M installs$180M revenue(+20% RPI, unlocks ability to increase UA)
For January 2017*, Playrix’s total mobile revenues ($17M) are greater than Zynga’s ($14M)*AppAnnie Estimates
BUNDLING CHECK LIST
●Provide a clear, 'better together' value proposition
●Focus on 'attach products' with low penetration, high potential
●Stick with higher-margin attach products
●Ensure value of attach product is high enough vs. core product
HOW TO TAKE ONE GAME AND MARKET TO THREE, NON-OVERLAPPING AUDIENCES:
THANK YOU&
QUESTIONS
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