GAMES & APPS SUBSCRIPTION MODELS

FOR MOBILE VAS

Debsena ChakrabortyApril, 2014

Index

• Models– Download to Own– Rental– Others

• Charging– Types– Cycles

• Revenue Distribution– Multiple Content Category

Models

Download to Own (DTO)

In this model the user is subscribed to a service that gives him credits that he can use to download X number of content pieces every day/week/month at a certain price. The user is renewed every billing cycle and credits are added to his account. This model can be used on any kind of content.

Pros: Can be easily configured, simple solutionCons: User retention can be an issue.

Rental

In this model the user is subscribed to a service that allows him to download any number of content from a service but allows him to use the content only when he has paid the subscription charges for the cycle.This model is used mainly for games and apps as this model needs an external code(called wrapper) around the content to control the usage.

Pros: Better user retention, better conversionsCons: complicated, need extra technical support

Other Models

• Try & Buy : Allow user to try the content before buying

• Game Play: Allow user to buy X number of game play

• Buy Level: Allow user to buy a certain level only

• Pay per Day: Allow user to buy the game for a day.

• Lite Version: Limit free access to certain level.• Value Packs: User is allowed to buy content in

a bundle.

Charging

Types

Other Charging MechanismVoucher, Cards, Pay Pal etc.

WAP ChargingUser is charged online when he clicks on ‘Subscribe’ button. In this case the billing provider needs to pass the MSISDN in the header

MT/MO ChargingUser is charged via SMS. It can be a charged when user send a particular keyword to a short code (MO)or it can be charged when this same is received and the billing is completed(MT).

Cycle

Charging cycle is a very important parameter that will decide the success or failure of the product. Traditionally there used to be just monthly billing but now there are daily, bi-weekly, weekly, monthly etc. billing cycles.

This is very specific to markets and cost of the product. If the cost of the subscription is $5/week it might make sense to get $0.70/day to get better billability.

The market targeted for the service plays big role in this.

Revenue Distribution

Multiple Content Category

It is very important to have a transparent revenue distribution mechanism. When you work with top content providers(CP) you are expected to have clean reports available for audits.The various methods used for revenue distribution are• Weighted average method. (Click to view)• Game plays method: Not a very good method as

the data can be very skewed to certain games only

The calculation is pretty much the same for single content category with multiple CPs