Game-On Productions

Patrick K. Cooper, Carmela J. Farolán, David L. Marcelis,Christopher P. Miller, Venisha L. Wimbish

The Chicago Game

-A news- and community-driven online game.

Coming up:-Why make this game?-How does the game work?-How does the game work as a successful site?-How does the game work as a successful product?

What is the Chicago Game?

-Chronicle needs a site that can attract an audience -- an under-35 audience -- on its own merits.-Something consumers want-Something that drives traffic and subscriptions

-CG accomplishes these goals by its nature - a multi-media, multi-platform interactive product.

-Unites people around their city and their Internet

Why make the Chicago Game?

-Young people’s decreasing appetite for news dates back more than 30 years. Why?

-More media choices-Lack of newspapers in the home-Lack of marketing -Electronic media enables an individualized media experience

-219 million+ computer/video games sold in 2000.-Online gaming audience will rise to 80 million by 2005, up 38 percent from today’s 58 million.

-Online advergaming revenue (ads displayed within a game) will rise to $774 million by 2006

Why make a game at all?

-Survey of 90 people on their interaction with multimedia devices for online recreation:

-96 percent have Internet access-47 percent participate in online games-90 percent wouldn’t pay for online games-71 percent have cell phones

-Of cell phone users:-25 percent use wireless Internet-17 percent play games-17 percent use text messaging-14 percent get news

Why make a game at all?

-New theme every month - keep players playing

-June’s theme: “Summer Fun”

-First week, for promotion and registration

How does the game work?

Week’s calendar

Tuesday, 8:30 p.m. -First quiz begins

Wednesday, 8:30 p.m. -First quiz ends

Thursday, 8:30 p.m. -Second quiz begins

Friday, 8:30 a.m. -Weekend task begins

Friday, 8:30 p.m. -Second quiz ends

Monday, 8:30 p.m. -Weekend task ends

-Components of the site encourage and enable Chicagoans to play the Chicago Game

Site components:-Home page allows players to register, as well as access game-related content

-Articles and news packages related to themes, quizzes and tasks

-Game play (answer quizzes, tasks)-Personal information, performance statistics and rankings within the game

How the site fits the game

-Structure of the Chicago Game allows game editors to control content topics.

-CG has the ability to interchange topics for purposes of education, promotion, or advertising.-Traffic can be driven to specific Web sections.-CG’s flexibility will bring longevity.

-Chicago Chronicle reaches a new audience of younger readers by receiving traffic from CG.-Result: Increased subscriptions.

Driving traffic, increasing subscriptions

-As a start-up, CG will benefit from the strength of its parent firm, Chronicle Co.

-Number one in total market reach among Chicago news and information Web sites-8th largest media organization-Reaches more than 80% of U.S. homes

-CG uses cross-promotion support from Chronicle properties (Chicago Chronicle, chronicle.com, and Chronicle TV and radio).

-CG will develop “out-of-family” advertising support from print and online publications.

Marketing campaign

-CG revenue generation will rely on a model of pure-play advertising with sponsorship packages and online ads.

-CG sponsorship packages allow advertisers to become identified with aspects of the Game.-Types: Major (1) - Theme (1) - Task (4) - Quiz (4)

Business plan

-Although CG will obtain start-up funds, the site will not be launched until sponsors pledge support

-Future revenue streams-Subscription model for expert players-E-commerce / merchandising

Business plan, continued

-Also: Independent design consultant to be hired for 6 mos.

Senior producer

Associate producer Advertising rep

Game manager

-Staffing:Five to operate CG on an ongoing basis:

Reporter

Technology:-CG will share in Chronicle’s Web infrastructure.

-System’s 50 percent idle capacity can handle CG’s estimated 2,000,000 monthly views.

-CG will invest in the necessary computer hardware and software applications.

Business plan, continued

Start-Up Investments

Domain name registration: $ 200Technical systems:-Computer hardware ($2,000 x 5) $ 10,000-Application software ($1,000 x 5) $ 5,000-Hosting (Chronicle) ----Bandwidth/Connectivity (Chronicle) ----Network tech support (Chronicle) ---Total technical investment $ 15,000Office furniture: $ 2,500Staffing: ($31,400 x 6 mos.): $ 188,400Overhead: ($7,700 x 6 mos.): $ 46,200

Total Start-up Investment $ 252,300

Business plan, continued

Profit and loss statement (1st month)Item Monthly revenue allocation

Sponsors on monthly game weeks:-Major ($ 30,050 x 1) $ - (-$30,000 for car prize)-Theme ($ 13,850 x 1) $ 12,350 (-$1,500 for cell prizes)-Task ($ 7,800 x 4) $ 30,900 (-$300 for gift prizes)-Quiz ($ 7,350 x 4) $ 29,100 (-$300 for mag. prizes)

Advertisers on Promo Week:-Skyscraper Ad - 1 week / month $ 5,000-Tile / Box Ad - 1 week / month $ 14,250

Projected Monthly Income $ 91,600

Business plan, continued

Item Monthly expense budgetPayroll:-Senior Producer – Technical/Editorial $ 6,700-Online Advertising Representative $ 6,000-Associate Producer – Marketing $ 5,200-Online Game Manager $ 4,500-Reporter $ 4,000-Web Interface Designer (6-month contract) $ 5,000Total monthly payroll $31,400

Advertising and promotions:-Chronicle print promo $ 1,540-Chronicle online promo $ ---External advertising and promotions: -Chicago Reader print $ 3,000 -@Chicago online $ 2,000-Other promotional channels $ 10,000Total promotional expenses $ 16,540

Business plan, continued

Item Monthly expense budgetSupplemental game package (uclick) $ 4,000Site hosting / bandwidth / tech support $7,000Operational overhead:-Leasehold expenses $ 1,200-Utilities $ 1,000-Fax / telephone $ 300-Office supplies / postage $ 200Total operational overhead $ 2,700

Projected monthly expenses $ 61,640Projected 1st month income (~33%) $ 29,960Projected 7th month income (~5%) $ 5,060

-With CG’s success, the model is completely exportable to other markets or can be licensed to any media company.

Business plan, continued

-Any questions?

End of presentation