digital kids summit 2013: michael cai, senior vice president of research, interpret

Kids PresentationMichael Cai, SVP of Research, Interpret

Who Are We?

2

Theatrica

l/D

VD

/TV

Advertisin

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Media

Pla

nnin

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Video Games

Gamer

Physical Media Download Portable Games

Connected Consoles

Online Casual Gaming

Download PC Games (Steam,

etc.)Social Network

GamingSub-based

MMO

Free 2 Play MMO

Virtual Worlds

Smart Phone Apps

iPad and Tablet

N=36,000 PER WAVE10 COUNTRIES 6-12 & 13-65

MARKET SIZING

ATTITUDESBEHAVIOR

KEY TRENDS

TWICE A YEAR

GameByte™ Overview

124 Millionkids 6-1281 Million

Acti ve Internet Users

68 Million Gamers (84%)

31 MillionRetail Console Gamers

17 MillionSmartphone Gamers

14 MillionTablet Gamers

18 MillionFree-to-Play PC Gamers

$2.4 Billion

spent on games for kids 6-12in the past 6 mos.

7

What Gaming Device Do You Like Most?

PS3: 11%

Wii: 13%Computer: 15%

Xbox 360: 16%Tablet: 17%

8

Percent of Kids Who Own Their Gaming TabletAmong Parents of Kids Gamers Who Play On Each Device (Base Varies)

US UK FR DE AU

36%

49%43%

28% 30%

19%

28%

3%10%

27%

Android Tablet iPad

UK FR DE US AU CN JP KR RU BR

45%

21% 25%

40%

58%

36%

20%

33% 34% 38%

23%

11%4%

30%

19% 17%8%

29%21%

27%

Full-Game DownloadsIn-Game Items

Conversion Rate for Each Type of Mobile Purchases

Conversion Rates for Kids Mobile Games

• Parents are willing to spend $10-20 for quality tablet games.• Overwhelming preference for full-gam downloads.

Top Kids F2P/MMO PC Games

10

Aware EverPlayedClub Penguin

Moshi Monsters

WebkinzBin Weevils

Dofus

Habbo

World of WarcraftPoptropica

FIFA Online 2 World of Tanks

Counter Strike Online

MapleStory

Lineage

Vegemon Farm

Chocotto Land

Wizard 101

Movie Star Planet

Kartrider

11

US UK FR DE AU CN JP KR RU BR

14%20%

7%4%

15% 13% 12%

28%

19% 18%

30%

23%

11%

4%

31%

12%18%

38%

31% 31%

Premium MembershipsIn-Game Items

Conversion Rates for Kids F2P Games

Paid Conversion Rate

12

Top F2P Spending Drivers for Kids

• Korean and US kids are especially driven by character customization. • Japanese kids are very unmotivated by this.

Character CustomizationSpecial Item Only Available with Real Money

Finished All Free ContentSpecial Item Hard to Earn without Spending Money

Want Content Exclusive to Premium Membership

13

5

10

15

8.67.2 8.3 7.6

13.3

Smart Toys – SkylandersAmong Total Respondents

UK FR DE US AU

20% 19%11%

19% 19%

% Own Skylanders Toys

Mean # of SkylandersToys Owned

(Among owners)

% Aware of Skylanders

41%32%

19%

36%47%

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Interest in Smart Toy IPs Among US Kids% Selected 5/4 On a 5-Point Interest Scale; Among Total Respondents#

55%51%

40%39%

37%37%

34%32%32%

30%28%28%

24%

Mario, Link, other Nintendo characters

Disney Infinity

Avengers characters

Star Wars characters

Batman characters

Harry Potter characters

X-Men characters

Pokemon Rumble U

American Girl doll characters

Barbie characters

Moshi Monsters characters

Skylanders

Rayman/Rabbids characters$1.5B

300K Units in 2w

Contact Info

Yuanzhe (Michael) Cai蔡元喆

SVP of Research, Games and TechnologyInterpret, LLC227 Broadway

Suite 300Santa Monica, CA 90401

michael.cai@interpretllc.comP: 310.255.0590 x343GVoice: 214-9379866

F: 310.255.0591www.interpretllc.com

Twitter: @InterpretLLC |@InterpretData