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November 12, 2012

Monetizing Mobile Games

From  a Business Today article:

Some pack in ads, while others like Kejriwal shun them but charge users to download games. Those choosing the latter option also have to decide where to display their games: on operators' sites such as Vodafone Live or Airtel Live or at app stores such as The Nokia Store or Google Play.

"The ad-funded model is not gaining much scale," says Samir Bangara, Managing Director, Digital, Disney UTV. His company charges users to download the premium versions of its games and earned Rs 54.5 crore in revenue for 2010/2011, mobile games being the largest contributor to its top line. But not everyone agrees with him.

Indore-based Twist Mobile, for instance, banks solely on ads for its revenue while keeping all versions of its games free. It has 30 games, of which the most popular is Zulux, with seven million downloads.
 ...The jury is still out on whether telecom operators' sites or app stores make for savvier distribution. There is a huge difference in the charges: the former provide better display but keep back around 70 per cent of the download fee, while app stores charge only 30 per cent. Thus smaller players such as Twist Mobile are reluctant to approach operators.

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