A recent data study by the Simon-Kucher consultancy firm, reveals the enormous growth space that this business model has in the near future.
The renowned marketing consultancy Simon-Kucher & Partners, yesterday published a report titled “The Global Gaming Study: The Future of Subscriptions”, showing that subscription gaming services have already been adopted by a significant part of the market, but that they still have lots of room to grow.
This study, based on a representative sample of more than 13,000 people in 17 countries during the months of May and June of this year, also establishes that there is a great appetite for a wide range of offerings, including high-end and low-end, already that more than three-quarters of current subscribers express interest in more than one subscription service.
The distribution of these percentages is not the same in each country.
For example, in the US, only 20% of gamers were actively paying for a subscription service, while players in countries with emerging economies, such as India and Indonesia, were more than twice as likely to be subscribers to these services, and that’s a logical fact:
Paying $ 400/$ 500 for a console and $70/$ 80 for each game in these countries, which by the way are many, is a lot of money.
Another interesting piece of data from the study revealed that there is room for growth in game subscriptions, not only among players who have not yet registered but also among those who already pay for services: 80% of those surveyed who are already had subscribed to one service, said they were already subscribing to several of these services (9%) or were interested in having multiple subscriptions (71%).
“There is a great opportunity for subscription services to become the primary way for consumers to access games and, based on our findings, it will also increase game participation in a very valuable asset to consumers: their time.” says Nick Zarb, partner at Simon-Kucher.
In general, global subscribers expect in the short term, to pay approximately $ 10 to $ 40 per month in subscription services, a range wide enough that the market can support multiple options or premium channels.
Moderate and serious gamers who represent the upper end of the range are willing to pay between $20 and $40 per month, leading to the creation of specific channels with early delivery of AAA titles, for example.
According to Lisa Jäger, a partner at the consulting firm: “Subscriptions to games are still in an early stage, similar to what we saw with Netflix and co during the early days of subscription services for movies and TV. People generally start with a subscription and as more players enter the market and users experience the convenience of these services, subscribing to multiple offers becomes commonplace. Publishers must do everything possible to participate in this growth trend, also to benefit from the recurring income streams that investors love so much. “
Matter of time…