Games & Apps Subscription services for B2B and D2C

1. GAMES & APPS
SUBSCRIPTION MODELS
FOR MOBILE VAS
Debsena Chakraborty
April, 2014

2. Index
• Models
– Download to Own
– Rental
– Others
• Charging
– Types
– Cycles
• Revenue Distribution
– Multiple Content Category

3. Models

4. Download to Own (DTO)
In this model the user is subscribed to a service that gives
him credits that he can use to download X number of
content pieces every day/week/month at a certain price.
The user is renewed every billing cycle and credits are
added to his account.
This model can be used on any kind of content.
Pros: Can be easily configured, simple solution
Cons: User retention can be an issue.

5. Rental
In this model the user is subscribed to a service that allows
him to download any number of content from a service but
allows him to use the content only when he has paid the
subscription charges for the cycle.
This model is used mainly for games and apps as this
model needs an external code(called wrapper) around the
content to control the usage.
Pros: Better user retention, better conversions
Cons: complicated, need extra technical support

6. Other Models
• Try & Buy : Allow user to try the content before buying
• Game Play: Allow user to buy X number of game play
• Buy Level: Allow user to buy a certain level only
• Pay per Day: Allow user to buy the game for a day.
• Lite Version: Limit free access to certain level.
• Value Packs: User is allowed to buy content in a
bundle.

7. Charging

8. Types
Other Charging Mechanism
Voucher, Cards, Pay Pal etc.
WAP Charging
User is charged online when
he clicks on ‘Subscribe’
button. In this case the
billing provider needs to
pass the MSISDN in the
header
MT/MO Charging
User is charged via SMS. It
can be a charged when user
send a particular keyword to
a short code (MO)or it can
be charged when this same
is received and the billing is
completed(MT).

9. Cycle
Charging cycle is a very important parameter that will
decide the success or failure of the product. Traditionally
there used to be just monthly billing but now there are
daily, bi-weekly, weekly, monthly etc. billing cycles.
This is very specific to markets and cost of the product. If
the cost of the subscription is $5/week it might make
sense to get $0.70/day to get better billability.
The market targeted for the service plays big role in this.

10. Revenue Distribution

11. Multiple Content Category
It is very important to have a transparent revenue
distribution mechanism. When you work with top content
providers(CP) you are expected to have clean reports
available for audits.
The various methods used for revenue distribution are
• Weighted average method. (Click to view)
• Game plays method: Not a very good method as the
data can be very skewed to certain games only
The calculation is pretty much the same for single content
category with multiple CPs