In the evolving world of digital gaming, commercialization plays a crucial role in sustaining and growing businesses. Explore different monetization models used in gaming, with a particular focus on a freemium strategy through a blended configuration.
Various business models, including subscriptions, free-to-play, ad-supported, and virtual currency, contribute to the revenue generation process.
1. Subscription-Based Model (AYCE – All You Can Eat)
This model offers full integration with Direct Carrier Billing (DCB) APIs to manage user onboarding and access to all content and tournaments. Users are auto-renewed until they choose to unsubscribe.
A percentage of gross revenue is derived from subscriptions, ensuring a steady and predictable income stream.
2. Free-to-Play (F2P)
This approach provides value-added services aimed at increasing user acquisition, engagement, and retention while promoting other services. It enables users to access content without any upfront payment. Revenue is generated through a monthly fee, with sliding scale options for different levels of access.
3. Ad-Supported Monetization
By eliminating barriers to entry, this model allows users free access to content while leveraging advertisements as the main revenue stream.
Ads are displayed in various formats, such as:
- Pre-roll and post-roll ads
- Advertorial content
- Sponsored tournaments & rewards
- Revenue is earned as a percentage of gross revenue from advertisements.
4. Virtual Currency Integration
This model is particularly prevalent in the crypto space, offering two primary avenues:
a) Allowing users to use cryptocurrency to gain access
b) Rewarding users with crypto-based incentives
Additionally, licensed clients have the option to provide skilled gaming opportunities where players can earn or spend virtual currency.
Revenue is earned through a monthly fee or a percentage of gross revenue.
The commercialization of gaming platforms thrives on a hybrid monetization model that combines various strategies. By integrating subscriptions, free-to-play services, ad-based revenue, and virtual currencies, businesses can create a flexible, scalable, and profitable system that caters to different user segments. This freemium approach ensures that users have access to content in multiple ways while companies maximize engagement and revenue generation.