Company CEO discusses two high-margin esports revenue sources for ePlay mobile games
ePlay Digital Inc. (CSE:EPY) today announced the Big Shot Basketball Mobile Game has reached
Top 10 Downloads in Sports, Simulation or Strategy games in Apple App Store in 23 different countries - up from 21 countries last week. In addition, ePlay is thrilled to reveal that Big Shot users directly entered over 50,000 head-to-head esports competitions in August. This represents stronger than expected off-season downloads and user engagement - the first two steps to earning revenue in the USD$61.3B mobile gaming industry.
“The number one question investors ask me is how does esports make money,” says Trevor Doerksen, CEO of ePlay. “Some investors express concerns about some low margin esports revenue sources. ePlay is focused on three very high margin revenue sources: skins, advertising, and in-game esports tournaments.”
To make money from mobile game three things are necessary - and in sequence. First, the game must be downloaded, then users must engage with the game, then, finally revenue must be enabled. ePlay is following this game plan with multiple titles including Big Shot Basketball.
The company has previously stated:
Today, the company is announcing that most recent data indicate previously expected ARPDAU (Average Revenue Per Daily Active User) may be multiples higher.
ePlay has created and marketed mobile games for ESPN, Sony, Intel, and others. As in the past, ePlay is measuring, adapting and adopting successful strategies based on actual downloads, customer acquisition costs, retention rates, reviews, and engagement analytics results. ePlay, and others, have heard from various stakeholders that more data and information regarding the esports industry, and its revenue sources, is necessary.
Three high-margin revenue sources are available to ePlay: skins, advertising / sponsorship, and in-app purchases of esports cash tournaments. Advertising and sponsorship are well understood, skins and cash tournaments are important and less well understood.
Lenedu.com found nearly 59% of Fortnite users surveyed spent an average of USD$84.67 on their
avatars and other in-app purchases.
Currently, ePlay’s mobile games allow users to use the points they earn playing the game to buy skins (sneakers, t-shirts, etc.) for their avatars. Shortly, premium skins will cost real dollars. Pokemon Go and Fortnite have turned skins into an extremely high margin multi-billion dollar business. ePlay will be adding premium skins to its game every few weeks starting next month as the company adds U.S. dollars and over 150 other currencies to the existing in-game currency used today.
In August, Big Shot users entered esports head-to-head and bracket tournaments for 2 to 50 in-game points. Tests show active users spending an average of 13.9 units of in-game currency per day to compete for Big Shot esports prizes of up to 6,000 of in-game currency. In-game currency is not cash. ePlay has not yet enabled cash tournaments. Further tests and product enhancements, including turning on cash tournaments, advertising and in-app content payloads will help the company determine and report projected and actual ongoing esports revenue.
* assumes August 2019 downloads only, no advertising and skins revenue, 100% of in-game currency is converted to USD, and utilizes data from targeted NBA off-season marketing efforts.
Figure 1. Screenshot from Big Shot Avatar Customization
Figure 2. Screenshot from Big Shot Showing Bracket and Head-to-Head Play
Figure 3. Screenshot from Big Shot Showing Sneaker To Be Released For User Avatars
ePlay Digital Inc. is a mobile game creator and publisher specializing in sports, esports and entertainment augmented reality titles, including their new flagship title Big Shot Basketball. ePlay is operated by an award-winning team of sports, gaming and esports leaders as well as broadcast and digital technology industry experts, software engineers and athletes who have brought dozens of game titles to market for companies including Time Warner Cable, ESPN, Sony Pictures, AXS TV, Intel, AXN, Fiat, CBS, and others.
ePlay’s wholly owned subsidiary, Mobovivo esports specializes in augmented reality, mobile game development and mobile esports streaming.
NBA is a registered trademark of NBA in the United States and other countries. Apple, App Store, and iPhone are registered trademarks of Apple Inc. in the United States and other countries.
Further details are available under the Company’s profile on SEDAR at www.sedar.com, and the Company’s profile on the CSE’s website at www.thecse.com/
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ePlay Digital Inc.
Canadian Securities Exchange (CSE): Symbol EPY
Deutsche Boerse Xetra - Frankfurt Stock Exchange: Symbol 2NY2; WKN: A2AN4D; ISIN CA26885W1041