2 Access for All: Expanding the Opportunity for Players and Developers Worldwide | Stakes at Play This whitepaper explains the market opportunity available to publishers and developers who choose to work with a partner like Coda (or one of its competitors). Our goal is to provide an overview of digital content distribution and monetization, clarify market structure, and describe the steps developers and publishers should consider in order to take advantage of this significant incremental opportunity outside of the two primary app stores. The paper also aims to address potential publisher concerns and clarify the complexities a publisher might encounter when considering partners outside of the app distribution and monetization channels (Google Play and Apple App Store). Google Play and the Apple App Store have dominated the app landscape for 15+ years and provide publishers a platform to enable discovery, distribution, and monetization. However, publishers are increasingly demanding more channels to market their content and more flexible solutions to maximize distribution and monetization. This has created new opportunities and solutions to help publishers develop a more holistic go-to-market strategy. 1STAKES AT PLAY Primary App Stores Alternative App Stores First-Party Web Stores Third-Party Web Stores • Publishers are demanding more channels to market and increasingly flexible and robust solutions, beyond primary app stores. • Users are increasingly discovering and paying for content via diverse channels outside the primary app stores. This is called out-of-app monetization, for the purposes of this paper, we define this as alternative app stores, third-party web stores & marketplaces, and first-party web stores. • The market place is now home to a wider variety of distribution and monetization options in order to meet these demands. 2

3 How can a publisher understand this landscape? Distribution Distribution is about selecting the right channels to make sure a company’s product is available and accessible to its target audience (for games, the target being relevant gamers). Digital content publishers distribute apps and other in- app content or add-ons both online and offline and, importantly, via primary and alternative channels. • Primary channels, such as the Google Play Store and the Apple App Store • Alternative channels include other app stores and web stores that facilitate out-of-app monetization. Web stores can be further broken down into first-party (where a publisher runs their own web store) and third-party web stores (where a publisher relies on other digital marketplaces or e-retailers to sell content) Purchase/Payments Payment is the final step of the marketing funnel, and is a critical point where potential customers become paying consumers. If the payment process is cumbersome, unclear, or sparks doubt, it can lead to cart abandonment. A smooth, secure payment experience can boost conversion and increase revenue. Different consumers prefer different payment methods based on location and user preferences. As such, publishers need to provide the right mix of payment options; credit/debit is popular in western markets and on Google Play and the App Store, but bank transfers, local digital wallets, in-person physical payments, etc are popular in other regions. Historically, monetization partners like Coda, Razer, or Xsolla began as providers of alternative payment methods. It is helpful to define key terms to help navigate this space. Although these terms are not new, clarifying the meaning of each can help optimize a publisher’s go-to-market strategy. Companies like Coda Payments, UniPin, Xsolla and others have strong origins historically in the payments space, but are increasingly providing additional valuable solutions to help publishers optimize their distribution and monetization strategies. For Coda, this includes solutions in addition to Codapay such as Codashop, xShop, and the company’s new Custom Commerce direct-to-consumer offering. Access for All: Expanding the Opportunity for Players and Developers Worldwide | Stakes at Play Marketing Funnel The marketing funnel represents the buying stages that potential consumers go through, from initial awareness of a product or service, to making a purchase decision. Digital content publishers can work with many partners throughout the marketing funnel. Monetization Monetization is the process of ushering a potential customer through the marketing funnel, and ultimately generating a sale and revenue. For digital content and games, three main monetization models exist: advertising-led, subscription-led, and/or transactional (inclusive in-app and web-based purchases of digital goods and services). Each of these requires different strategies and tools to drive success, e.g.

ing a sale and revenue. For digital content and games, three main monetization models exist: advertising-led, subscription-led, and/or transactional (inclusive in-app and web-based purchases of digital goods and services). Each of these requires different strategies and tools to drive success, e.g. optimizing product availability, pricing, promotions, etc. 3

3 The new trend in game monetization isn’t new at all Niko Partners has been tracking the games industry in Asia for over 20 years, and we find that Asia often leads the globe in gaming trends. Where and how games are distributed has become a major topic in the games industry over the last 3 years, following a growing number of legal changes related to in-app billing, take rates, and alternative payment platforms. However, the fact is, Asia has demonstrated the wider value – and need – for out-of-app monetization platforms for much longer than that. Niko Partners’ 2023 model estimates that in Southeast Asia, out-of-app monetization accounts for 21% of all mobile games revenue, and we note this share is even higher in certain markets. In China, where Google is absent from the market, alternative channels (alternative app stores, third-party web stores & marketplaces and third-party web stores) accounts for 53% of all app monetization. While credit card payments through primary app stores serve many users, Asian gamers often make purchases with e-wallets, through their phone carriers, with calling card top-ups, and other alternative payment methods, and these players rely on out-of-app monetization. To fully address these markets, publishers must provide alternative payment channels to fill in where primary app stores leave service gaps for many users. For over a decade, developers and publishers have been reaching gamers in Asia via channels outside of the two primary app stores (Google Play and Apple App Store). In some cases, publishers themselves build first-party solutions that match their players’ demands – Sea Group’s Garena is one example. However, it is often far more effective for international publishers to work with a monetization partner who can handle relationships with local payment providers, navigate local tax laws, and even leverage local payment and social channels for publicity and title discovery. • Monetization options outside of Google Play and the Apple App Store are getting more press, but 1st and 3rd-party web stores have been the norm in Asia for over a decade. • Global publishers who do not localize their go-to-market strategies are losing out, especially to regional publishers who have well-developed strategies in place. • Legislation favoring competition, growing recognition of out-of-app monetization, and concern for the high fees primary app stores charge for the right to distribute on their platform is speeding the growth of the out-of-app monetization market share in Asia. Access for All: Expanding the Opportunity for Players and Developers Worldwide | Stakes at Play In Niko Partners’ market model, Southeast Asia refers to Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam; while China refers to mainland China. * 4

2 Access for All: Expanding the Opportunity for Players and Developers Worldwide | How Does the App Monetization Landscape Work? Transactional app monetization has historically been dominated by primary app distribution platforms like the Apple App Store and Google Play. Publishers enroll in a developer partnership program, submit an app for review and, if the review is successful, then submit the application for release. This walled-garden approach allows Apple and Google to ensure any release on their respective platforms is approved to meet their specific guidelines. These platforms facilitate app monetization through in-app payments. Users click a button in an app and their payment is verified directly in the app for most cases, but not all*. This simplifies things for publishers, but in return they pay primary app distributors a significant share of each in-app purchase, called a take rate. 2HOW DOES THE APP MONETIZATION LANDSCAPE WORK? Pay via 3rd party (out-of-app) Pay in primary app User Payment Options Payment Service Provider (PSP) Initiates Purchase App Developer / Publisher Out-of-app checkout (e.g., in-app web view) Payout (less 3-10% fee) Payout (less 30% fee) Alternative App Stores Third Party Web Stores First Party Web Stores Even more popular apps like Spotify and Netflix route users out-of-app for payments, because of the policies of primary app stores. * 5

Access for All: Expanding the Opportunity for Players and Developers Worldwide | How Does the App Monetization Landscape Work? Take rates are at the center of the growing awareness of the app publishing and payments ecosystem. Primary app distribution platforms (Google and Apple) take up to 30% of payments made through their platforms, while limiting the ways publishers can direct payments through their own websites or through payment channels outside of primary app stores. (Although these limitations may be changing). This strict framework and the limitations that come with it are some of the main reasons why publishers are seeking alternative ways to monetize and distribute content. Alternative app stores (Amazon, Aptoide), generally have some of the same payment limitations as primary app stores and collect take rates similar to Google and Apple. First and third-party app monetization channels, as their name implies, offer publishers additional routes to monetize apps and content. First-party web stores (like EA, Garena, and many others which may be built independently or via a solution like a Custom Commerce by Coda. A direct-to-consumer approach provides developers additional routes to onboard users, collect payments, and to distribute content efficiently. It also provides them access to robust data and insights to their users, enabling them to build deeper relationships and experiences. Access to increased data also allows for better product customization, innovation, and content personalization. Third-party web stores and marketplaces (like Codashop or others) also offer publishers a much better share of payments, allowing game creators to see more of the revenue generated by their content. First and third-party web stores have existed for many years, but recent developments and legislation have led to wider industry awareness of this market segment. As more markets introduce legislation designed to increase competition on and outside of primary app stores, publishers are becoming more aware of the value of monetizing through these channels. Additionally, the increasingly global nature of the gaming and app ecosystem is making partnerships with alternative distribution platforms a key strategy for publishers in emerging markets, where preferred payments are not fully covered by primary app stores. Combined, this is creating new opportunities for developers and publishers who wish to expand their reach and retain a larger share of the revenue their apps generate. 6