the view from below - superdata kids mobile presentation at casual connect usa 2015

THE VIEW FROM BELOW

CASUAL CONNECT USA 2015

MOBILE GAMES FOR THE NEXT GENERATIONSTEPHANIE LLAMAS, DIRECTOR OF RESEARCH

@STEPHINANERS @_SUPERDATA #CASUALCONNECTUSA

2THE VIEW FROM BELOW | © 2015 SuperData Research | www.superdataresearch.com

| Playable media & games market research

Stephanie Llamas

Director, Research & Consumer Insights

SuperData Research

http://www.superdataresearch.com

Relevant market data and insight on digital games and playable media





Monthly analyses and industry reports using digital point-of-sale data






Understand what people play, connect to and spend on






Understand what people play, connect to and spend on

A next gen approach for next gen entertainment




8


LANDSCAPE

THE VIEW FROM BELOW | © 2015 SuperData Research | www.superdataresearch.com


Worldwide mobile games revenue, 2015E

$24.1B Total worldwide market for mobile games, 2015E North America shows signs of stagnation but the U.S. still goes strong with almost a fifth of the global games market and $4.7B in revenue.

9


North America

$4.7 billion

Latin America

$1.8 billion

Asia

$13.2 billion

Europe

$3.7 billion

Rest of world

$0.7 billion



10



Kids mobile game market share of WW mobile game market, 2015E

7.8%

2015E

$1.9B WW kids mobile game revenue


11



7.8% 9.3%

Kids mobile game market share of WW mobile game market, 2015E

Kids mobile game market share of US mobile game market, 2015E

2015E

$417M US kids mobile game revenue

2015E

$1.9B WW kids mobile game revenue


12



75

100

125

150

175

J F M A M J J A S O N D J F M A M J

Mobile cost per install and average revenue per user, indexed

*Index compares a metric to a particular base month, specifically January 2013, represented by the value 100.

2014 2015


13



0-56-910-13

PARENTS’ CHOICE

PARENT/CHILD CONSENSUS

WHATEVER IS COOL


14



Outlets for creativity

Simple gameplay

Complex gameplay

Social aspects

Appealing graphics

Iconic characters/mascots

Cartoonish features

Branding

Educational gameplay

Game quality preference

Simulation

Action

Arcade

Strategy

Puzzle

Sports

Racing

Other

Word

Adventure

Board

Mobile gaming preferences of US kids 8-11 years old


15


US TRENDS



16



PREMIUM

Monetization types for mobile games

• Upfront game purchase • Premium+IAP


17



PREMIUM FREE-TO-PLAY

Monetization types for mobile games

• In-app purchases • Subscriptions • Advertising

• Upfront game purchase • Premium+IAP


18



0

40

80

120

160

2014 2015E 2016E 2017E

$46M$49M$44M$42M

$107M$104M$100M$96M 42%

27%

31%

55% 30%

14%

US premium upfront and IAP revenue share by age, 2015E

US premium mobile games revenue from kids

0-5

6-9

10-13

Upfront vs In-app purchases


19



CONS • Limited revenue stream • Short lifespan (unless you’re

Minecraft) • Doesn’t fun ongoing

development and support

PROS • Largely COPPA-friendly • Transparent • Popular with parents

Premium kids mobile games


20



0

100

200

300

400

2014 2015E 2016E 2017E

$344M$317M

$273M$245M

75%

19%

6%

US free-to-play revenue share by age, 2015E

US free-to-play mobile games revenue from kids

0-5

6-910-13


21



CONTENT • Easier to follow regulations • Transparent • Hard to make money • Needs constant content

updates

CONSUMABLE • Highest potential for spending • Ethical gray area • Highly regulated • Competing with big studio

games

Free-to-play kids mobile gamesCONSUMABLE vs. CONTENT IAP


75%

19%

6%

22



22%

39%

39%US free-to-play IAP and subscription

revenue share by age, 2015E

US free-to-play mobile games revenue from kids

0-5

6-910-13

0

100

200

300

400

2014 2015E 2016E 2017E

$44M$37M

$31M$22M

$300M$280M

$242M$223M

free-to-play vs subscription purchases

0-5

6-9

10-13


23



Top 10 growing kids mobile games in the iOS app store*

*Retrieved 9/11/2015


24





free-to-play IAP


25





free-to-play IAP vs premium (no IAP)


26





free-to-play IAP vs premium (no IAP) vs subscription


27



Free-to-play kids mobile gamesSUBSCRIPTIONS

CONS • Hard to find on Google Play • Less pricing flexibility • Technical limitations

PROS • Growing in popularity • Transparent • Predictable and recurring

revenue

Confirm Your In-App PurchaseDo you want to subscribe to

this super awesome kids game for $2.99 a month?

Cancel Buy



28

OUTLOOK



5%

10%

15%

20%

1

1.55

2.1

2.65

3.2

2015E 2016E 2017E

$2.2B$2.1B

$1.9B

1000000000

1550000000

2100000000

2650000000

3200000000

2015E 2016E 2017E

$505M$478M

$417M

29



fore

cast

annu

al gr

owth

rate

Worldwide vs. U.S.Kids mobile game revenue


0

75

150

225

300

2015E 2016E 2017E

$46M$49M$44M

$107M$104M$100M

$44M$37M$31M $37M$35M$31M

$263M$244M

$211M

30



General F2P IAP vs. Kids F2P IAP vs. Subscriptions vs. Premium upfront vs. Premium IAPUS mobile game revenue from kids


31



US mobile game revenue from kids — growth rate

2015E 2016E 2017E

0%

10%

20%

30%

40%

General F2P IAP vs. Kids F2P IAP vs. Subscriptions vs. Premium upfront vs. Premium IAP


32



Young audiences are cultivated for

agency Entertainment is transitioning from passive to active


33



THANK YOU!

Director, Research & Consumer Insights Stephanie Llamas [email protected]

www.superdataresearch.com @_SuperData @Stephinaners #CasualConnectUSA



the view from below - superdata kids mobile presentation at casual connect usa 2015

Mobile

global games market

director of research

digital games

mobile games revenue

relevant market data

bww kids mobile game

b total worldwide market

mus kids mobile game