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The Value Chain

The Value Chain. Portal: Dan Prigg Manager of Developer Relations, RealNetworks Publisher: David Nixon Studio Director, Oberon Games Sergei Avetikov IT-Territory Legal Support Moderator & Introduction: Gabe Zichermann CMO, Boonty Games. The American Value Chain. Developer. Publisher.

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The Value Chain

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  1. The Value Chain Portal: Dan Prigg Manager of Developer Relations, RealNetworks Publisher: David Nixon Studio Director, Oberon Games Sergei Avetikov IT-Territory Legal Support Moderator & Introduction: Gabe Zichermann CMO, Boonty Games CGA Europe: East 2006

  2. The American Value Chain Developer Publisher Portal Distributor Technology Provider

  3. The American Value Chain Developer Publisher Portal Distributor Technology Provider

  4. 20% $ Share The Developer • Makes Games: • Original Ideas • Work-for-Hire (someone else’s idea) • Organizes all aspects of game development • Usually absorbs development risk • Examples: PopCap, Sandlot Studios,

  5. The American Value Chain Developer Publisher Portal Distributor Technology Provider

  6. 15% $ Share The Publisher • Funds Games: • Original Ideas • Submissions from Developers • Distributes & Markets Games • Pays for placement/arranges placement • May also develop its own games • Usually absorbs marketing risk • Examples: Playfirst, Iwin, Oberon

  7. The American Value Chain Developer Publisher Portal Distributor Technology Provider

  8. 15% $ Share DistributorsandTechnology • Provides Technologies: • DRM, E-Commerce, Tracking • Sometimes Development Technologies • Provides second-tier distribution • Aggregating smaller websites together • Sometimes first-tier • Manage financial and customer support • Often combined into one entity • Usually absorbs bandwidth/commerce risk • Examples: Macrovision, Boonty, Digital River

  9. 50% $ Share Portals • Deliver Customers • Traffic aggregation, targeting, development • Manage Customer Service and Commerce • Take transaction, disburse payments • Coordinate customer service • Direct to Consumer Marketing Programs • Usually absorbs consumer risk • Examples: Real, Yahoo!, MSN, Shockwave

  10. Changes/Trends • Developers Publishing • Publishers  Direct to Consumer • Publishers  Growing by Acquisition • Distribution & Technology  Together • Portals  Developing In-House • Portals  Combining for Greater Revenue

  11. Opportunities for You • Self-Publish • Most control, Own IP • Portal Relationships are challenging • Work for Hire • Leverage Publishers for Immediate Revenue • Least Creative Input • Develop Direct to Consumer Offerings • Control and Revenues • Costly to start

  12. The American Value Chain - Discussion Developer Publisher Portal Distributor Technology Provider

  13. Thank You! Portal: Dan Prigg Manager of Developer Relations, RealNetworks Publisher: David Nixon Studio Director, Oberon Games Sergei Avetikov IT-Territory Legal Support Moderator & Introduction: Gabe Zichermann CMO, Boonty Games CGA Europe: East 2006

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