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Cloud Gaming:
new revenue stream
for publishers and
developers
10/27/2016
Jean-Denis VIGATO
Head of Cloud Gaming
Anne-Laure CAFFIN
Head of Cloud Gaming
Olivier AVARO
CEO
Lo誰ck TANGUY
VP Business
Development Asia
Ivan LEBEAU
CEO
Armand CLAUDEL
Product Manager SmartTV
Nathalie LAMRI
Product Strategy &
Marketing Director
Mustapha TOUMI
SmartTV Content Manager
Summary
1. Ecosystem
2. Publishers/Developers: Challenges & Opportunities
3. Market Overview
4. Cloud Gamer Profile
5. Conclusion
1- Cloud Gaming
Ecosystem
PUBLISHERS & DEVELOPERS
DISTRIBUTORS
IPTV PROVIDERS
MEDIA PLAYER/OTT
MANUFACTURERS
SMART TV
MANUFACTURERS
CONTENT PROVIDERS
CLOUD GAMING SERVICE
PROVIDERS
TECHNO PLATFORMS
GAMERS
Abandon all hope, ye who enter here !
The Nines Circles of Hell of Cloud Gaming
1. Is it technically feasible ? (Latency, bit rate, )
2. Is it financially viable ? (CPU/GPU/BW costs)
3. Is there an audience for it ?
4. Can we build a catalogue for this audience ?
5. How can they access the games (Controller)
6. What business model for the ecosystems ?
7. How do you make it global ?
8. What distribution / acquisition cost ?
9. How do you retain customers ?
2- Publishers/Developers:
Challenges &
Opportunities
Opportunities
 Publishing
 Revival for Back Catalogues : less obsolescence on the consumers targets
 Titles are long standing sellers : 2 to 3 years
 Accept to go for demo or trial versions
 Kids/casual gamers are less and less assigned by major PC/Consoles digital platforms
 Kids titles = opportunities
 Casual gaming  Now only MOBILE but can be assigned via family/female/kids cloud gaming TV packages
 New business models and extra money for Publishers
 Subscription based or packages Business model work good
 Quid for advertisement royalties in the future ??? Not started yet ?
 Access to Specific Telcos billing helps a lot : SFR/Orange direct invoicing
 Provide easier access to emerging markets where consoles sales are week
Russia/China/Africa/LATAM
 Marketing opportunities for IPs
 Having a strong franchise is a + on TV cloud gaming
 Integrate in your plans those new formats (ISPs, OTT, Smart TV) help the overall of IP brand
awareness but negotiate marketing activities with your partners
 No piracy !!!
Challenges
 Publishing :
 IP and source codes ownerships issues
 Most of the time cloud gaming adaptations are not included in contracts with IP owners . Its New formats for IP owners, so they ask
for more money
 Dont forget to include those formats in your contracts as you do with STEAM or PSN
 Developers and publishers are reluctant to provide source codes to non trusted or new business
platforms
 Technical issues
 Two major main formats can be adapted : Androids and PC - depends on technical specificities for each platforms
 But choose consoles lead formats titles to avoid difficulties for PAD adaptations
 Backward engineering is sometime difficult for Back catalogues
 Teams are working on other projects 
 Old sources codes with external engine not upgraded : Ie UNITY 2 to Unity 5
 SDK integrations is not so simple - to cloud gaming industry => Stop to say its a 5 mn job
 For multi formats publishers (consoles/Mobile/PC) we have now zillions of SDK to integrate (platforms + billings) !!!!
 Marketing challenges
 For new releases and AAA titles : Publisher are reluctant to say OK
 Price positioning for consoles is around 50 to 70 euros 
 Difficulties to understand where goes our titles worldwide
 Beta/Master Candidate tests in end users conditions are difficult
 We dont have clear understandings on worldwide coverage and release plans .
3- Market Overview
ISP: Orange & SFR
SFR + Orange: pioneer & veterans in cloud gaming
 SFR + Orange: A success story
 A Cloud Gaming platform and business running for 6 years (SFR: Oct 2010 / Orange: Oct 2012)
 9M French households with IPTV providing WIZTIVIs cloud gaming platform
 Each & every month >70K gamers paying 10 or 15 - still growing!
 A new partnership with WIZTIVI Gaming and new countries to open
 Games:
 We already distribute 270 games /40 publishers : Anuman, SEGA, Ubisoft, Warner Bros., Disney, Konami,
Gameloft, EA, Activision, Focus, Playrix, Mumbo Jumbo and many others !
 Thanks to a multiple porting solution and a full dedicated and skilled team
 Were looking for:
 Premium publishers, small publishers & independant studios
 All games, from gamer games to casual games, from new games to back catalog games
 Telcos assets:
 Back catalog games monetization and windowing release
 A fully integrated and secured customers billing system
 Customers close relationship & powerful marketing tools
 Providing the hardware (Cloud gaming dedicated servers & STB) + a High Bandwidth managed network with
prioritized network flow
 No piracy
OTT: EMTEC
Connected TV:
The war for the
living-room is just
beginning
Cloud Gaming  OTT
Over 100 Million
Streaming Media
Players sold in the
world*.
*Parks Associates
Cloud Gaming  OTT
SMART TV:
Samsung & LG
 1Mo+ Smart TV
sold from Jan to
Aug in 2016
 Netflix has been
the #1 trigger for
use
 Cloud gaming
now?
8,289
106,396
289,205
331,858
246,633
59,912
5,599
28'' 32'' 40'' 46/50'' 55'' 60/65'' 70''
Smart TV Screen sizes
Jan 2016 (YTD August)
Streaming ott smart_tv_thefutureofdigitalcontent_ltanguy
Samsung SmartTV experience :
Needs of SmartTV Users :
Sample and Quick access
Multiscreen and portability
Incredible Image quality: UHD
Game without console (after VOD Streaming, TV Apps)
Gaming concept in SmartTV Samsung :
Play console game titles without console through video streaming technology : Game fly
(The Batman Arkham City , Sleeping Dogs, Lego Marvel Super Heroes, Grid2, Hitman)PlayStation
Now OR SteamLink (New)
Download and play casual games optimised for Samsung Smart TV ex : Asphalt 8, Cars: Fast as
Lightning, Just Dance
Quick and easy access : Clear UI, games categorised by supported controller
The largest installed base of Smart TVs in France, Europe and World
Tizen SmartTV : 40% of All Samsung SmartTV
Impact on Service during GameFlay Marketing promotion :
X3 lgame usage
MAU (Free Game and cloud Gaming): 57% in Europe
Cloud Gaming Premium
Gamestream
Cloud Gaming as a Premium service
- Cloud Gaming Premium XP ?
 Great streaming solution: Full HD 1080p + 45-60 Fps + imperceptible latency
 Great content: Adapted to users + a mix of cult and recent titles
> A Premium service is a mix of very good technical conditions (techno and
Network) and an cherry-picked content
- On ISP services:
 A few ISP can provide this level of QOS: some foreign ISPs + 1.4M FTTH users in FR
 When users are confident with the UXP (even in 720p), they spend money on
Premium packs and A la Carte titles
- On other platforms:
 Gamestreams experience in Hospitality
 Opportunities on OTT for STB and SmartTV providers
Streaming ott smart_tv_thefutureofdigitalcontent_ltanguy
4- The Cloud Gamer
Profile
SFR Cloud Gaming - Platform positioning
PC
FAMILY gamer
Non portable DEVICE
Portable DEVICE
HARDCORE
gamer
PS4
XBOX
NINTENDO
SFR Cloud Gaming
Smartphone &
Tablet
SFR Cloud Gaming - Players profiles
MEN
54%
WOMEN
46%
Family
with kids
60%
Childless
couple
23%
Single
17%
3-5 yo
7%
6-12 yo
22%
>50 yo
17%
26-49 yo
32%
13-18 yo
14%
19-25 yo
8%
SFR Cloud Gaming - Most played games TOP10
1 2 3
4 5 6
5 8 9 10
Orange France Cloud Gaming : some statistics
 10 Millions minutes of fun per month
 Average session duration = 26 minutes
 Peak hours :
 17h-21h on week days,
 10h-21h on week-ends
 Peak days : Saturday, Wednesday, Sunday and school holidays 
 A growing customer satisfaction : 7,8 in 2015 (vs. 7,4 in 2013)
Conclusion
The Cloud gaming market has now turned into a reality, driven by the
convergence of several factors:
 High-Speed Internet (ISP)
 Connected TV massive hardware installed bases (Telco STB, Smart TV and 3rd
Party OTT)
 Reliable cloud-based technology (platforms & servers)
 Attractive content (game catalogue)
 Viable business model:
 Low cost entry for end-consumers and adoption of subscription-based
model by end-consumers
 Increasing revenue stream for publishers/developers
 Streaming has changed the way people consume media (e.g. Netflix, Spotify)
The future of video games is in the cloud!
The video game industry has not yet experienced its total
digital revolution vs. music and video. Game streaming is
definitely a massive trend in the industry that game content
providers need to embrace and see as a new opportunity to
make games as easy to access as music and movies, and
grow their audience.
THANK YOU!

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Streaming ott smart_tv_thefutureofdigitalcontent_ltanguy

  • 1. Cloud Gaming: new revenue stream for publishers and developers 10/27/2016
  • 2. Jean-Denis VIGATO Head of Cloud Gaming Anne-Laure CAFFIN Head of Cloud Gaming Olivier AVARO CEO Lo誰ck TANGUY VP Business Development Asia Ivan LEBEAU CEO Armand CLAUDEL Product Manager SmartTV Nathalie LAMRI Product Strategy & Marketing Director Mustapha TOUMI SmartTV Content Manager
  • 3. Summary 1. Ecosystem 2. Publishers/Developers: Challenges & Opportunities 3. Market Overview 4. Cloud Gamer Profile 5. Conclusion
  • 5. PUBLISHERS & DEVELOPERS DISTRIBUTORS IPTV PROVIDERS MEDIA PLAYER/OTT MANUFACTURERS SMART TV MANUFACTURERS CONTENT PROVIDERS CLOUD GAMING SERVICE PROVIDERS TECHNO PLATFORMS GAMERS
  • 6. Abandon all hope, ye who enter here ! The Nines Circles of Hell of Cloud Gaming 1. Is it technically feasible ? (Latency, bit rate, ) 2. Is it financially viable ? (CPU/GPU/BW costs) 3. Is there an audience for it ? 4. Can we build a catalogue for this audience ? 5. How can they access the games (Controller) 6. What business model for the ecosystems ? 7. How do you make it global ? 8. What distribution / acquisition cost ? 9. How do you retain customers ?
  • 8. Opportunities Publishing Revival for Back Catalogues : less obsolescence on the consumers targets Titles are long standing sellers : 2 to 3 years Accept to go for demo or trial versions Kids/casual gamers are less and less assigned by major PC/Consoles digital platforms Kids titles = opportunities Casual gaming Now only MOBILE but can be assigned via family/female/kids cloud gaming TV packages New business models and extra money for Publishers Subscription based or packages Business model work good Quid for advertisement royalties in the future ??? Not started yet ? Access to Specific Telcos billing helps a lot : SFR/Orange direct invoicing Provide easier access to emerging markets where consoles sales are week Russia/China/Africa/LATAM Marketing opportunities for IPs Having a strong franchise is a + on TV cloud gaming Integrate in your plans those new formats (ISPs, OTT, Smart TV) help the overall of IP brand awareness but negotiate marketing activities with your partners No piracy !!!
  • 9. Challenges Publishing : IP and source codes ownerships issues Most of the time cloud gaming adaptations are not included in contracts with IP owners . Its New formats for IP owners, so they ask for more money Dont forget to include those formats in your contracts as you do with STEAM or PSN Developers and publishers are reluctant to provide source codes to non trusted or new business platforms Technical issues Two major main formats can be adapted : Androids and PC - depends on technical specificities for each platforms But choose consoles lead formats titles to avoid difficulties for PAD adaptations Backward engineering is sometime difficult for Back catalogues Teams are working on other projects Old sources codes with external engine not upgraded : Ie UNITY 2 to Unity 5 SDK integrations is not so simple - to cloud gaming industry => Stop to say its a 5 mn job For multi formats publishers (consoles/Mobile/PC) we have now zillions of SDK to integrate (platforms + billings) !!!! Marketing challenges For new releases and AAA titles : Publisher are reluctant to say OK Price positioning for consoles is around 50 to 70 euros Difficulties to understand where goes our titles worldwide Beta/Master Candidate tests in end users conditions are difficult We dont have clear understandings on worldwide coverage and release plans .
  • 12. SFR + Orange: pioneer & veterans in cloud gaming SFR + Orange: A success story A Cloud Gaming platform and business running for 6 years (SFR: Oct 2010 / Orange: Oct 2012) 9M French households with IPTV providing WIZTIVIs cloud gaming platform Each & every month >70K gamers paying 10 or 15 - still growing! A new partnership with WIZTIVI Gaming and new countries to open Games: We already distribute 270 games /40 publishers : Anuman, SEGA, Ubisoft, Warner Bros., Disney, Konami, Gameloft, EA, Activision, Focus, Playrix, Mumbo Jumbo and many others ! Thanks to a multiple porting solution and a full dedicated and skilled team Were looking for: Premium publishers, small publishers & independant studios All games, from gamer games to casual games, from new games to back catalog games Telcos assets: Back catalog games monetization and windowing release A fully integrated and secured customers billing system Customers close relationship & powerful marketing tools Providing the hardware (Cloud gaming dedicated servers & STB) + a High Bandwidth managed network with prioritized network flow No piracy
  • 14. Connected TV: The war for the living-room is just beginning Cloud Gaming OTT
  • 15. Over 100 Million Streaming Media Players sold in the world*. *Parks Associates Cloud Gaming OTT
  • 17. 1Mo+ Smart TV sold from Jan to Aug in 2016 Netflix has been the #1 trigger for use Cloud gaming now? 8,289 106,396 289,205 331,858 246,633 59,912 5,599 28'' 32'' 40'' 46/50'' 55'' 60/65'' 70'' Smart TV Screen sizes Jan 2016 (YTD August)
  • 19. Samsung SmartTV experience : Needs of SmartTV Users : Sample and Quick access Multiscreen and portability Incredible Image quality: UHD Game without console (after VOD Streaming, TV Apps) Gaming concept in SmartTV Samsung : Play console game titles without console through video streaming technology : Game fly (The Batman Arkham City , Sleeping Dogs, Lego Marvel Super Heroes, Grid2, Hitman)PlayStation Now OR SteamLink (New) Download and play casual games optimised for Samsung Smart TV ex : Asphalt 8, Cars: Fast as Lightning, Just Dance Quick and easy access : Clear UI, games categorised by supported controller The largest installed base of Smart TVs in France, Europe and World Tizen SmartTV : 40% of All Samsung SmartTV Impact on Service during GameFlay Marketing promotion : X3 lgame usage MAU (Free Game and cloud Gaming): 57% in Europe
  • 21. Cloud Gaming as a Premium service - Cloud Gaming Premium XP ? Great streaming solution: Full HD 1080p + 45-60 Fps + imperceptible latency Great content: Adapted to users + a mix of cult and recent titles > A Premium service is a mix of very good technical conditions (techno and Network) and an cherry-picked content - On ISP services: A few ISP can provide this level of QOS: some foreign ISPs + 1.4M FTTH users in FR When users are confident with the UXP (even in 720p), they spend money on Premium packs and A la Carte titles - On other platforms: Gamestreams experience in Hospitality Opportunities on OTT for STB and SmartTV providers
  • 23. 4- The Cloud Gamer Profile
  • 24. SFR Cloud Gaming - Platform positioning PC FAMILY gamer Non portable DEVICE Portable DEVICE HARDCORE gamer PS4 XBOX NINTENDO SFR Cloud Gaming Smartphone & Tablet
  • 25. SFR Cloud Gaming - Players profiles MEN 54% WOMEN 46% Family with kids 60% Childless couple 23% Single 17% 3-5 yo 7% 6-12 yo 22% >50 yo 17% 26-49 yo 32% 13-18 yo 14% 19-25 yo 8%
  • 26. SFR Cloud Gaming - Most played games TOP10 1 2 3 4 5 6 5 8 9 10
  • 27. Orange France Cloud Gaming : some statistics 10 Millions minutes of fun per month Average session duration = 26 minutes Peak hours : 17h-21h on week days, 10h-21h on week-ends Peak days : Saturday, Wednesday, Sunday and school holidays A growing customer satisfaction : 7,8 in 2015 (vs. 7,4 in 2013)
  • 29. The Cloud gaming market has now turned into a reality, driven by the convergence of several factors: High-Speed Internet (ISP) Connected TV massive hardware installed bases (Telco STB, Smart TV and 3rd Party OTT) Reliable cloud-based technology (platforms & servers) Attractive content (game catalogue) Viable business model: Low cost entry for end-consumers and adoption of subscription-based model by end-consumers Increasing revenue stream for publishers/developers Streaming has changed the way people consume media (e.g. Netflix, Spotify)
  • 30. The future of video games is in the cloud! The video game industry has not yet experienced its total digital revolution vs. music and video. Game streaming is definitely a massive trend in the industry that game content providers need to embrace and see as a new opportunity to make games as easy to access as music and movies, and grow their audience.