Trends in online entertainment for kidsThe Rise and Rise of Online Gaming

youth connectivity

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…

insight, strategy, creative, media

RESEARCH INTERACTIVE

MARKETING

youth connectivityinsight, strategy, creative, media

researchfull service agency in tune with technology

QN

QL

The definitive marketing portal for Disney’s products and services

• Entertainment destinations x 23 across the Region• Web-only content focusing on video, games and

activities• Premium services include Club Penguin, Toontown

and, coming soon, Pixie Hollow and Cars• Offices in UK, France, Italy, Spain and Budapest

Overview – Disney Online EMEA

The wider context… and focus

Children’s Broadcast Media Consumption

Online TV

Communication& Networking

Media Convergence

Formats

Monetisation

Online Gaming

Trends

Casual Gaming

SN Gaming

Virtual Worlds

Children’s Broadcast Media Consumption

Online TV

Communication& Networking

Media Convergence

Formats

Monetisation

Online Gaming

Trends

Casual Gaming

SN Gaming

Virtual Worlds

14

7

4

6

16

5

7 7

17

6

14

10

0

2

4

6

8

10

12

14

16

18

20

TV Radio Internet Games

ho

urs

/ w

eek

5-7 8-11 12-15

Time spent per week

Children’s Broadcast Media Consumption

Online TV

Communication& Networking

Media Convergence

Formats

Monetisation

Online Gaming

Trends

Casual Gaming

SN Gaming

Virtual Worlds

Children’s TV: Favourite Channels

44%

41%

40%

30%

24%

53%

36%

7-8 9-10 11-12 13-14

Children’s Broadcast Media Consumption

Online TV

Communication& Networking

Media Convergence

Formats

Monetisation

Online Gaming

Trends

Casual Gaming

SN Gaming

Virtual Worlds

Multi-platform

62% of 7-14s watch videos on the Internet

38% watch TV using digital/satellite on-demand TV

Use the Internet to watch TV shows on demand 55%

60% play games with favourite TV characters

Have been to websites after on-air call for action 40%

Children’s Broadcast Media Consumption

Online TV

Communication& Networking

Media Convergence

Formats

Monetisation

Online Gaming

Trends

Casual Gaming

SN Gaming

Virtual Worlds

Online Trends

0%

20%

40%

60%

80%

100%

7-8 9-10 11-12 13-14

Games Videos Watch TV Chat SNSs

Children’s Broadcast Media Consumption

Online TV

Communication& Networking

Media Convergence

Formats

Monetisation

Online Gaming

Trends

Casual Gaming

SN Gaming

Virtual Worlds

21%

33%

31%

28%

Facebook account

using SNSs

MSN account

chatting online

9-10

s

86%

87%

70%

81%

Facebook account

using SNSs

MSN account

chatting online

13-1

4s

Chatting & Social Networking

Children’s Broadcast Media Consumption

Online TV

Communication& Networking

Media Convergence

Formats

Monetisation

Online Gaming

Trends

Casual Gaming

SN Gaming

Virtual Worlds

Online Games – UK KidsDubit Euro Games Tracker, 7-10s (January 2010)

Younger Kids 7-10 Gaming

Around 9 in 10 play games on the Internet; of these…

Note: % of all gamers

7-8s 56% 50%

38%

32%

15% 12%

9-10s 46% 33%

49%

32%

21% 19%

Older Kids 11-14 GamingAround 8 in 10 play games on the Internet

11-12s

42%

38%

33% 22%

48% 41%

Note: % of all gamers

60% 56%

46%

40%

25% 21%

13-14s

Children’s Broadcast Media Consumption

Online TV

Communication& Networking

Media Convergence

Formats

Monetisation

Online Gaming

Trends

Casual Gaming

SN Gaming

Virtual Worlds

SocialGaming

Social Networks with gaming dimension

Online games with networking features

Gaming Trends: Types of Games

Casual

Virtual Worlds

SN Games

• Profiles• Avatars• Homes• Pets• Chat• Minigames

Boys

Girls

7 yrs 14 yrs

CharactersLevels & adventures

Play against othersChat with other players

58%

46%

31%

24%

Disney’s Casual Games

• Up to 250 games in the catalogue• Up to 50 new games a year• Top games at 35,000 gameplays

per month • 11 million page views a month

across EMEA• Top games: Cars, Up, Bolt, Mickey

Disney’s Virtual WorldsEntertainment unique to the medium of connected interactivity

Club Penguin

Proposition:

•A snow-covered virtual world  where kids can interact, play games and let their imaginations soar in a safe, ad-free, online playground.

Target audience:

•6-14 (7-11); boys and girls

Languages:

•English, Portuguese, French, Spanish

Price (monthly):

•$5.95, £3.95, €4.95

Performance: •Largest MMOG in western market by consumer spend in the Western market place in 2008

•Top global MMOG by unique visitors (May 09)

•The leading MMOG in the UK, representing 19% market by spend in 2008

•Top UK kids web destination with 19% of all kids traffic in Oct 09

•News: Children’s “Best Website” Bafta 2009

Children’s Broadcast Media Consumption

Online TV

Communication& Networking

Media Convergence

Formats

Monetisation

Online Gaming

Trends

Casual Gaming

SN Gaming

Virtual Worlds

What kids are doing(% of total)

• 11% pay for subscriptions• 13% buy virtual goods

13-14s Increased autonomy

Business Models

Membership

Micro-transactio

ns

Advertising

Of those who pay:• 76% up to £5/month in membership

• 88% up to £5/month in virtual goods

• 11-12s biggest spenders in both

25.9 27.016.2

7.818.0 18.6

10.824.8

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

UK France Germany Holland Sweden Finland Norway Denmark

Would consider paying?Dubit’s Euro Games tracker (7-10s, January 2010)

Why not paid for games?7-10s European Study (January 2010)

‘Parental reactions: paid content

Perceptions• Value for money of paid online games vs. tangible goods• Easiness of payment methods - fears of using credit card• Lack of knowledge about differences between paid / unpaid• Different levels of kids’ allowances and autonomy• Generational gaps – ‘virtual’ vs. ‘real’• Free games available

‘Commercial’ Barriers

Some touch points• More active than watching TV / DVDs• Some educational value – even if not ‘educational’• Web savvy and gaming parents easier to reach• Safe socialisation environment• Brand reputation

• Research your audience: kids and parents

• Make it social, customisable, allowing progression

• Review suitable business models

• Consider eventual changes in regulation

• Include good safety mechanisms

• Invest in viral / word of mouth marketing

• Engage in continuous dialogue with kids and parents

And to wrap up…

Claudio FrancoResearch Manager

Julie AdairDirector, Online Product Operations