Publishers will add less value in the future as the Internet makes distributing content that its price will trend to zero.
Successful publishers and content creators will embrace the power of free AND use the power of the Internet to crete profitable, one-to-one relationships with their biggest fans
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1. How to make money and thrive in anenvironment where Free is
the normal price Nicholas Lovell GAMESbrief Futurebook December
5th, 2011
2. Nicholas Lovell, GAMESbrief Author, How to Publish a Game
Director, GAMESbrief Clients include Atari, Channel 4, Channelflip,
Firefly, IPC, nDreams, Rebellion and Square Enix @nicholaslovell /
@gamesbrief
3. Subscribe to the blog
4. WHAT IS PUBLISHING?
5. Mythbuster: Publishing is about content Books 10%
90%Newspapers 15% 85% Games $50m $200m Publishers add value through
DISTRIBUTION
6. Publishers add value used to add valuethrough
distribution
7. Publishers add value used to add valuethrough
distribution
8. Publishers add value used to add valuethrough
distribution
9. The Internet has made distribution easy
10. Great news for content creators Content distributors, not
so much Ballpark, I estimate 50% of people in content distribution
will be out of work over the next decade BUT many more content
creators will be able to make a living from producing and
distributing their own content
11. Show me the money
12. The price/demand curve In an era of physicalPRICE
distribution, you need to set a single price For games, around $40
Its great value, Id have paid much more Thats too expensive for me
Demand
13. Now we let users set the price Hypothesis: Allow users to
choose howPRICE much they spend on your product, and your revenues
will go up DDO revenues up 500% DCUO revenues up 700% $ 3$ $ 5$ 5$
$ $10 MMO 1 $ 5 $3 $ $ $ subscription 3 3 3 1 5 Demand
14. WRONG!
15. Allowing users to choose how little to payis not the secret
We all knew that 95% of users played forPRICE free We now know that
80-90% of revenues come from 0.5% of users Spending $50 - $10,000
or more Demand Paying: 5% Free: 95% 80-90% of revenue from 0.5% of
users
16. The Nine Inch Nails Example Ghosts I IV Ultra Deluxe
Edition: $300PRICE Ghosts I IV Deluxe Edition: $75 Ghosts I IV
physical: $10 Ghosts I IV digital: $5 Ghosts I: $0 Demand
17. The conclusion
18. One-size-fits-all pricing is deadPRICE Revenue opportunity
Marketing opportunity Demand
19. Thank [email protected] Follow my blog
www.gamesbrief.com Buy my books