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.

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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


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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


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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


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0-56-910-13

PARENTS’ CHOICE

PARENT/CHILD CONSENSUS

WHATEVER IS COOL


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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



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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


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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


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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


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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


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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%

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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


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free-to-play IAP


25





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


26





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


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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

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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

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


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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


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THANK YOU!

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

www.superdataresearch.com @_SuperData @Stephinaners #CasualConnectUSA

