FICCI-KPMG-Report-13-FRAMES

104 The power of a billion: Realizing the Indian dream
Mobile gaming
Mobile gaming continued to see sustained growth in
smartphone and tablet device penetration, and regular
uptake of gaming content (IAMAI estimates that nearly
50 percent of mobile users regularly access gaming
content). Although telecom operators such as Vodafone
are increasingly recognizing the importance of developing
a vibrant gaming ecosystem on-deck and are rationalizing
revenue share terms (now offer 70 percent revenue
shares to several large publishers), the off-deck segment
is expected to eclipse the on-deck segment in value terms
by 2014.
Monetization currently remains a challenge for Indian
publishers, as the majority of game downloads are adfunded.
However, given that most Indian smartphone
users have access to content published by global content
providers and the fact that the gaming universe is highly
fragmented, the spend gets spread across a large number
of developers and private publishers.
“
As an industry we have not developed the
right ecosystem to monetize content. We
are still observing increased consumption
in free ecosystems. The challenge is to
transition from an ad dependent economy
to a fairly priced ecosystem. The industry
will have to leverage technology and
significantly differentiate experience – add
features which will make consumers feel
enriched and be willing to pay for such
services.
“
- Neeraj Roy
MD and CEO,
Hungama Digital Media Entertainment
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with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Mobile games publishing outlook
Mr. Jayont R. Sharma,
Chairman & CEO,
Milestone Interactive Group
Global app downloads have doubled to
over 40 billion in 2012 across a billion
devices. India currently has a smartphone
consumer base of just over 40 million
which is still only 4 percent of the total
mobile phone subscriber base but
growing at a CAGR of over 60 percent.
This presents a huge opportunity for
Indian developers, publishers, IP owners
and brands to enter the burgeoning
app market that is poised for significant
growth in the years to come. Keeping
in sync with this trend and the market
needs, Milestone has recently forayed
into the dynamic market of publishing
mobile gaming apps. The operating
model envisages a flexible multiple
studio partnership model, financially
supported by us, whereby the studios
are given creative freedom to produce
great games/apps that appeal to a
global audience. Milestone will focus on
understanding market needs, predicting
the consumer behavior and executing
marketing & PR campaign around the
apps – including monetization, app
analytics, performance measurement
and ROI. Our aim is to help independent
studios and development teams to stay
focused on their core competence and
yet get their products showcased to a
global market through a gaming focused
distribution platform.
Unless otherwise noted, all information included
in this column/ article was provided by the author.
The views and opinions expressed herein are those
of the authors and do not necessarily represent the
views and opinions of KPMG in India.