Posts tagged Online Gaming
European Users are Ready to Pay for Digital Content
Mar 24th
The report conducted by Forrester Research* at the end of 2010 reveals that European consumers are willing to pay for digital content and highlights the trend that consumers’ appetite for paying for content is rising:
• 31% of them would be willing to pay for online music in the future, up from 26% in 2009.
• 30% of them would be willing to pay for online movies in the future, up from 26% in 2009.
• 24% of them would be willing to pay for eBooks in the future, up from 21% in 2009.
This trend is confirmed by the increased dematerialization of the consumption of media and entertainment:
• In the book market, for instance, according to recent research titled “E-book” from Idate, global eBook sales is predicted to account for 17% of the total book market sales in 2014, which would represent more than a 3-fold increase between 2010 and 2014.
• In the gaming industry, digital gaming accounts for 39% of the overall gaming market in 2010, up from 32% in 2009, according to IFPI and PwC.
*Source: Forrester Research, European Technographics Media, Marketing, and Social Computing Online survey Q3 2010; base:14,246 consumers ages 12+
Payment options: The More Extensive, The Better
Sep 23rd
It seems that the majority of our customers can, at times, get confused over whether to use PSMS, prepaid cards or IVR as the main payment options for their premium content online. They ponder their options in order to determine how they should maximize revenues, taking into consideration conversion rates and payouts. Our approach to this discussion is always clear: each payment option will provide a higher commercial contribution to their revenues than any potential cannibalization rate.
Recently, OPQA www.opqa.com, a 100% Spanish multiplayer online gaming platform (and an Allopass customer for quite some time now) has been reviewing its options in order to try and increase revenues. When we sat down for our regular review, the options became clear: revenue growth can be achieved either by increasing the audience or by increasing ARPU (average revenue per user). As increasing the audience is essentially a long term strategy, we concentrated on trying to increase the ARPU and proposed that they start including additional methods of payment as a test. We consequently aggregated the IVR at fixed cost (905 numbers in Spain) and ran this alongside the current PSMS offer.
The results after almost a month of this new approach were both surprising and revealing. The revealing element was that sales coming in from IVR solutions increased steadily to provide 21% of all revenues. The surprising part was that the revenues from PSMS remained unchanged.
What is the conclusion of all this? Primarily – it is that by increasing the payment options available clients will not suffer from revenue cannibalization. On the contrary, users seem to find their preferred method of payment when they are exposed to a wider range of payment solutions.
Therefore, it is always worthwhile to talk honestly and openly to your providers in order to try and find new methods of increasing revenues.
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