Winning Space Game Biz Model
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Transcript of Winning Space Game Biz Model
Winning Space Game Biz ModelSam Dinkin, Ph.D.
CEOSpaceShot, Inc.
www.freespaceshot.com
What have we done since last Space Access?
Validated math and science excitement amongst players Validated ad model Validated value proposition Comprehensive marketing survey Test marketing at air shows, sci-fi conventions, space conventions, schools, on the internet and in media Launched freespaceshot.com Offer free opportunities to win trips to orbit, trips around the Moon, scholarships and ZERO-G airplane flights
Market Opportunity
From 8/24/06 white paper updating2002 Futron Study Conclusions
Suborbital Spaceflight Industry Revenue without Games
Suborbital Spaceflight Industry Revenue Doubled with Games
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2008 2009 2010 2011
Suborbital Industry Revenue with Game Demand
98% of families make less than $250k/year and cannot afford full-pay flights at first Financing for flights has poor availability and games are self-financing US suborbital games opportunity $125M 30% growth
Relevant Acquisitions
Fun Games $400 million (operates Virgin Skill) Now 30 million players
IGN $600 million 23 million unique users per month 2005
Skype $4 billion 54 million users when purchased, now 100 million users
You Tube $1.67 billion 20 million unique users per month
Suggests subscribers worth $13-80 to Space Shot if Space Shot sells the company
Market Positioning
Positioning of pay game
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<8 8-12 13-16 17+
ExcitedComputer Access
Computer ProficiencyCredit Cards
Available Time
Probability of play can be expressed as f(E*CA*CP*CC*T)
Kids excited, but have no means to pay. Adults have means to pay, but...
Positioning of free game
Kids most interested Pre-sold on space
Parents say “you can be an astronaut”
Kids have most time available
Tweens (8-12) have computer access and computer proficiency and are most excited about the game
Positioning
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<8 8-12 13-16 17+
ExcitedComputer Access
Computer ProficiencyAvailable Time
Probability of free play can be expressed as f(E*CA*CP*T)
Ten times higher demand than pay game
Evolution 2008-
Once there are flights and winners, 17+ players will become more interested
New games needed to address all markets
Free drawing
Free poker
Competitors
Virgin Volvo 2005 Giveaway 130,000 players expendable
Microsoft Rocketplane Vanishingpoint Game 88,000 players expendable
Texas Lottery 7 million players, $3.4 billion annual revenue
Party Poker $1 billion 2005 revenue credit card pay illegal
Revenue Model
Revenue = Players * frequency * ad rate * ads per play We are acquiring players at about $8 per player and trying to get that down to $2.50 per player Frequency for our 2000 players is approximately one play per month (13000 plays made). Trying to get that to 90 per day. Ad rate is $0.60/thousand (CPM)—business model works at $0.35 CPM and lower if we add milestones. Can get CPM to $15 for interstitials and $2-$3 for banners with 200,000 players
Need 1 million players (10% of kids 8-12 in US) for a year at 90 plays per day to award $300 million flight for two around the Moon
Cost model
Operations Servers: $550/month
Call center: $300/month
Operator/referee: $800/month
Promotions: $120/month
Capital Technical Services: $3000/month
Advertising/Marketing (above replacement): high Volvo-Virgin, Microsoft: $12-20 per player
Early to Market
RpK not yet flying Rocketplane XP or K-1
Constellation Services not yet flying
Bigelow not yet flying passengers
Business Goals 200,000 daily players by 2012 Subscriber acquisition cost down to $2.50 per player New languages
Spanish 2008Japanese 2009
New games Free Drawing 2008
Instant game requires hole-in-one insurance (3x players for same profit)
Free Poker 2010
New non-space prizes Personal space is 3 parts in 10 million of economy Cars are 1/25 of economy 2007 Houses are 1/6 of economy 2008 Cash is 100% of economy
Reach goals
More investors
School fundraising sales
Corporate sweepstakes sales
How can you help?
Tell your computer teacher friends who teach to kids 8-12 that we have a free lesson plan