This column comes via the Lightspeed Venture Partners Blog, and David Perry of Acclaim Games, and it's a good read, because it describes how digital content can be monetized. There are some real gems in here that can easily be morphed into other content industries. Thanks for publishing this, David.
Some clippings:
Potential Video Game Monetization Methods by David Perry
"These models come from 25 years of watching people experiment with game monetization" says David.
"Selling boxed product at places like EBGames, Gamestop or Virgin
Megastore..the gap in this market is “same day” physical delivery of
games too big to download or 1st party titles (basically combining
online & bricks and mortar in one solution.) The future of this
space is pre-paid cards as the consoles will (in the future) go online
only, distributing everything directly to the consumer, so retail (to
make it worth selling the hardware) will need a cut of the software
sales..."
"Digital Distribution: this also technically includes “unlocking”
access to a game already on a service, like the faux install process on
Facebook (however the player would have to pay to do this unlock..."
My comment: imagine being able to unlock a library of music already on your cell phone, just by doing something that an advertiser / sponsor asks for... is that the future of advertising or rather... contvertising?
"Around-Game Advertising (basically making money from banner &
skyscraper adverts that circle the gameplay window).. the revenue comes from CPM
(cost per thousand views), CPC (cost per click), CPA (cost per
acquisition of a player), CPP (cost for a “real” player who really
plays for a certain time, or to a certain level.)"
My comment: imagine 'around TV' advertising- I need to riff on this idea a bit.
"Advertgames (the whole experience is an advert), common on movie
websites, can also be big like America’s Army or the Burger King games
on Xbox 360.... The advertiser helps fund the game and depending on the deal,
that determines who earns cash out of the revenue. Your reputation will
impact this equation"
"Try Before you Buy” / Trialware / Shareware / Demoware / Timedware
(this is letting you play crippled, shortened, or restricted time
versions of a game for free, while trying to up-sell the full version.)
This is a real balancing act as too much in the demo can kill any hope
of future sale..."