An overview of the India games market in 2016

[Music] hi guys of glad to see some of you it's later part of the evening and really nice to have Javier I will quickly run you through some of the information about India market because I think the fundamental call which audience should take and must take is whether India make sense for them at this stage or not the secondary question of should we should they go alone should they go with some publisher is a subsequent discussion so i will not kind of get into slides to show or tell you what azara offers and what kind of publishing capabilities do we offer so without much a'dope there I'll just two minutes on Azara nazara is a game publisher we operate in 45 48

countries in most of the emerging markets Indian subcontinent Africa Southeast Asia Middle East to predominantly run gaming subscription services and in India we are also now starting to do since last one air hard we dominate google play as a local publisher so that's what we run I will explain to you some of the things but before I'm seeing lot of excitement these days around India because China is really kind of taken off and India being a very very large market roughly 1.2 billion users there's a lot of excitement about what's happening in India is in there going to grow like Chris is snoring giant weekend giant what's really happening so in my view India will follow China but we are still six years seven years behind China so those of you who are is thinking that hey listen that six billion dollar China

which is really kind of there will India be roughly around two three billion dollars in next 18 months 12 months 24 months I don't think that's going to happen India is growing it's growing very very fast but the there are many factors which I'll cover in our slides which will ensure that that the juggernaut will reach its pinnacle with reached its height in around six seven years from now that's my kind of point of view India's some of the stats for those who love stats 300 million internet users apps are being downloaded crazy leap you have 200 million smartphones roughly five million smartphones 27 million smartphones are being sold every month numbers are huge news oh I saw some t-shirt here they're projected huge amount of mobile gaming revenues for India market and forty-five percent of all apps downloaded our games so lot of gaming activity is happening from app stores

lot of gaming apps tivity is happening through side loading on devices lot of mobile gaming activities happening through third-party app stores so people are playing games there are a hundred million mobile gamers roughly in the country today as we speak yeah however there are some of the factors why India should not wind up with the China lens yeah we have devices the new devices are being sold we have 4g is being still rolled as we speak how the phones are already smartphones are sixty seventy percent 4G labeled so devices are not a constraint that the rest thirty percent forty percent are still two g which is feature phones so you still have a feature phone being sold in that market which may come i could come across a surprise for you but the basic reason for that is pricing you have a feature phone which is being sold at a twenty years dollars and a smartphone starts at 40 to 50 US dollars there is a 2.5 times price difference between a feature phone

in a smartphone but still means that a consumer who's who may be making monthly roughly around two hundred dollars he can't afford or she can't afford to have a smartphone infrastructure as I said four G's is being rolled up so many countries which have seen eighty percent seventy percent 4g PR five six percent 4G and Tier one towns will take next 18 months to have all oh gee that the funny thing is you have a 4g phone but still consumers are putting it to g sim yeah because that price difference between 2g price and a 3g and 4g price is roughly four times five times yeah so you have consumer which is very price sensitive price-conscious we have got a great news last week where one of the largest guy entered into the market has disrupted the data pricing I hope that data pricing should get sorted but currently that's why you have lots of 2g users still there in in country which has a direct implication on what kind of games can they play

most of these consumers have never seen pc internet because they came internet happened for them on mobile it's the first time they saw internet and hence what to do on internet is an education process the hundred million mobile gamers some of them are most of them are heard gaming from their peer pressure and that's how they kind of got into gaming right so we are not a country with saw in console gaming or a pc gaming we are a country which is seeing gaming on mobile happening for the first time and then people who are playing games habit for in-app purchases and the last mile infrastructure these are some of the things which will ensure that why i mentioned that you may have infrastructure in place you may have devices in place you may have internet in place but may still be a 67 years before you really really have a 45 billion dollar market really happening that will happen there is no doubt about it just that the message which i want to give it to you do not look at India and making money from tomorrow if if if if that's the decision criteria in your

boardroom that should be spent time and get money tomorrow no it's not going to happen if you're looking at building your brand community lot of users and are therefore to three-year Orizon perfect market for you to get into so just to give you some more perspective we have 600 million people who are still not on internet yeah the these guys are going to come on internet in over next three to five years we have 200 million people who are you may call it Internet user but not internet consumer they are accidental users or light users as we speak and then there are 80 million people who are heavy to medium users of Internet that's the addressable market for the freemium gaming which you can really talk about right now so one other thing is when we sit outside India mean look at 350 or 300 million mobile game Internet users we think it's a large market but as I said there is an

education phase there is an habit face and which kicks in into this so roughly how is this market going to change they'll be in evolution obviously if 600 million people will not keep sitting with our internet they will come on internet and this 200 million people will become so this is how we see the market in next three to five years we see roughly this 80 million people become 200 million guys we see these people who are are flirting with internet flirting with mobile gaming are 400 million so you're talking about 400 plus two hundred six hundred million addressable market out of the 200 million being right market for freemium now assuming that in three to five years your infrastructure which is Aman investment which is going will be taken care of your payment micro payment options will be taken care of you have devices already available in the market and the devices are going to become better and better you have standing at a large market which is going to really grow at like a hockey stick hence a perfect time for you to

start thinking of what could be done in this market because some of you or many of you might have missed the chinese bus and this bus may also leave if you don't think now some of the examples of ecosystem you have carrier billing happening still very strong that is one of the most efficient payment channel really there Google Play has credit cards credit card penetration in the country is very very low you may have a ten twelve percent penetration so if you're looking at the masses then that's not the right payment model however if you are looking at top 20 million people which are affluent on premium devices absolutely bang-on those are the guys which we have credit card you have local games android is the ecosystem ninety percent 95% nominated or let me say fragmented between local Williams Chinese OEMs and in the global om's you have local that net was global ad

networks and what is heartening is alternate payment channels are really becoming big like a leap a in China we have pay to em and others yeah so this ecosystem is also evolving app stores fragmentation is beginning to happen telcos have their app stores or iums have their app stores third-party app stores Chinese up stores and google dominates so there is fragmentation which is going to really evolve and happen and hence if you are building your brand and user base now it's it's a good time when the app stores will run behind you rather than the other way around have I pressed something Chris here this is not clicking sorry yeah so what we believe is going to work here looking at the audience's we think that there are two segments of audience or three segments one is the casual users which are really playing your arcade

puzzle racing runners those kind of games then there is 20 million audience which is not small could be bigger than many countries which will play your RTS RPG strategy shooting those kind of games and then we have a intersection of these two which is social casino social casino as a category is is really really big much bigger as a percentage than the US market percentage is a function of because the RTS thing is still not developed so much so you have these three segments and these are three areas where you can really figure out on what genre of the gaming you really want to get into what is nazara we have done is we have kind of looked at the local content we have signed some exclusive big eye peas Bollywood stars cricket stars kids I peace TV and we are making lot of casual games made for India where the user has a very simple game mechanics very simple familiarity and we

are working with developers Indian or global to really create those games we are also looking for bringing developers like cut the rope to India and working with them on what could be done to localize it from an indian point of view the localization from indian point of view one of the important thing if it's a casual game is a game size 15 mb 20 mb great beautiful if you can make make it even lesser the consumers will be delighted if you are talking about f 40 mb 50mb you are increasing friction and your funnel of installed downloads will look slightly birds if you're looking anything over 50 mb and casual game I don't think that's a right strategy at all for the market yeah some of the games which we have really done and which have really testimony to our 15 mb and below and the local IP we have been consistently hitting number one on well plate of free charts some of

these games have been ahead of candy crush temple and subway surfer yeah so what we believe is the validation of size and validation of IP is really bugged well now yes our game may not have the similar amount of retention which a survey surfer and Temple Run has and hence we have not consistently been holding on to number one position but we believe that partnerships with games which I've already have that will really help us to kind of cement that position yeah we have looked at a social casino game and what is important is people who are looking at alternate monetization is the very very very interesting aspects of the market since great card is penetration is very low that alternate modes of payment whether it's you know somebody directly depositing money in the bank account or there are alternate payment channels they become really important if you are trying to make your money through in-app purchases and especially on android iOS cakewalk no issues because you have users were credit cards and all that stuff but if you are targeting Android and Android uses

alternate payment channels become very important second thing is it's becoming important is we have looked at the role which community management really plays and interacting with them engaging with them engaging with whales and dolphins and converting them by on increasing RPP you and I think that's really really critical in a country where you need two handled consumers who are not so evolved at this stage so because of these two factors we took this game from a developer which was languishing in crossing 300 and down ranks and we are kind of got it up in top 15 thousand three months casual games monetization I think reward videos reward videos reward videos that's the one mantra which really works and second is the brand integration inside the games feature without interfering with consumer experience local brand I tie-ups inside the game that's where you can monetize your casual game otherwise i was looking at an interesting slide by another speaker

india's number two in terms of ads being generated but doesn't stand in top 20 in terms of the revenues which means that your EC pms are much lower where to your us or a UK or a Germany now if you're easy themes are lower you need to find an alternate way of monetizing your casual games which is brand integration which is which is becomes very important there are a couple of questions which have been asked always whenever I have interacted n one-on-one or in groups so I will kind of answer these questions which will help you to kind of understand the market these are this is what Indians are playing you can see puzzle racing arcade adventure sports Kirk it is equal to sports so that's what these are the journal game genres which casual users which are roughly 60 million people which are really playing and you gotta kind of keep it simple make the game mechanics simpler easy to pick up intuitive gameplay and that really works make it complex tour 60 million people

will run away yeah if you have a complex ftv you can really look at a d-1 retention of twenty percent yeah how much does a game make in terms of downloads from Google Play roughly 11 and a half million downloads items you could see the number of downloads sharply reduce yeah however when you look at the revenues the number one crossing game would be making bioss fairly equal to or supporting percent sixty percent that kind of thing which you can see from there yeah so 1.5 million dollars you can look at these whether you can look at glass half full of glass half empty this is the number 56 years back us top-grossing number one used to have and this is the number already happening in india in spite of all the barriers to pay which exists there so conversion percentage is very low you have an on average less than 0.5% of consumers really converting point five

percent also is skewed because of clash of clans and clash royal and another couple of games so I iOS if you're making a crossing game amid core game iOS becomes a very important channel if you are making a casual game android is your key channel you can actually ignore iris also because the ninety percent of users are going to come from android so it's also a function of how your game has converted and monetizing and then kind of take that call we believe that these are the three genres which are really going to really happen for mid-core and Indian IEP disruptors and if you happen to really kind of look at India and how to attack it either of these three genres or all of these three genres could be a good one to disrupt the market and really kind of get it there currently as I said clash of clan is on top and then it's a kind of a level playing field for everyone social casino and this is the category to really make money through in-app purchases and

we believe that some bit of indigenization will help english is the language so you don't need to worry about localizing into him indian languages however in terms of art if you want to kind of really resonate with people and also in terms of live operations and local events those are the things which are important which can really help you and kind of reaching there yeah that's what we are kind of looking at we believe that take the global brands into India we apply a local consumer knowledge local community knowledge you have the game which is kind of working and let's create something a community and network which is going to last for next to 35 years that's all I have I hope I mean time yeah thank you perfect wow that was really insightful lots of date lots of information do we have any questions finish all those one at the back Ron Elspeth run and thank you for a great presentation

like um good do you know if there are any specific legal or regulatory things that came near opera has to take to account if they want to enter to Indian markets so if you are not doing a real money gambling right if you are doing a real money poker or real social casino whatever it is then you need to really be worried about beyond that you shouldn't be worried about anything yeah so there are no legal or statutory things which kind of bind you or except if you are not in real money gambling [Music] you