3. KZero services (we don’t just do charts)
For Start-ups: Business planning, market sizing, financial modeling, strategic
guidance
For Virtual World/Goods companies: Marketing strategy, product
development, user analysis
For Brands: Media planning, campaign creation, virtual brand strategy
For VC’s/Investors: Deal-flow, investment analysis, market sizing
7. Key Growth Drivers
Perceived Value: Parents allowing their children to spend more time in
VWs
Greater Funding: Uplift in VC activity moving into 2011
Brand Awareness: More VWs having a real-world presence
Payment Mechanics: Easier, faster ways to purchase virtual
currencies/services/goods
8. Growth: Number of VWs
900
750
600
450
300
150
0
2005 2006 2007 2008 2009 2010 2011 2012
11. KT&T: Growth areas
Media brands: TV shows, films, youth IP all creating VWs to create greater
engagement
Music: Major growth area for virtual goods and event simulcasting
Virtual Celebrities: Starting with musicians
More genres: Lots of different types of KT&T worlds
Mobile payments: The avg. age of a new mobile phone user in the UK is 8 !!
12. Q1 2011: total registered accounts 600m
450m
561m 300m
272m
313m 150m
5-10
10-15 0m
15-25 39m
Age Group 25+
14. Adults: Growth Drivers
Gambling: SMOGs and MMOGs
Dating: Great for virtual goods and gifting
Creative platforms: Micro-worlds. Vastpark, Mycosm
New Genres: Sci-Fi
21. SocNet extension
SocNets have an inverse issue to VWs
SocNets have user bases without greater interaction
VWs have the interaction without the user bases (for new worlds)
We expect SocNets to aggressively move into the VW and VG space
25. Education: Growth areas
Remote Learning: Regardless of geographical location
Immersive Learning: For sweet-spot subjects like History and
Geography
New Student Outreach: Already being used - we expect more
P2P Learning: Students helping other students
28. Photo-Realistic Avatars: Growth areas
Key to Mass Adoption: Creates meaning and relevance to VW
interaction for early majority market
Consumer: Dating, gaming and older VW platforms
B2B/Enterprise: Critical for convincing employees/stakeholders to
adopt VWs
Bigger Picture: Could become the key‘digital self’management
platform
30. Reputation Management
Necessary for trade-based and B2B platforms
A reputation or trustworthiness‘score’
Similar to an Ebay rating - P2P
Immersionalists vs Augmentalists
31. Accounts per unique resident (Second Life)
1.80
Stabilization
1.70
1.60
1.50
1.40
Innovators Early Adopters
1.30
1.20
Jan06 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-07 Feb Mar Apr May Jun
33. Mirror Worlds: Growth areas
Tactical Uses: Events, promotions
Immersive Learning: For education
ARGs: Mirror worlds support Alternate Reality Gaming
But,facing competition from rapid development applications (on the fly)
38. Growth areas: Cross-World
We have to be able to move‘things’from one world to another
Or have a‘place’to aggregate or move from
Cross-world applications could be buddy-lists, communicators, virtual
goods or even currencies
41. Growth areas: Brands
The first‘brand rush’is over (Second Life 2007)
We expect a lot more brands to move in-world
Either tactically or into their own worlds
44. Growth areas: Virtual Goods Integration
Virtual Goods are a booming industry
Lots of emerging business models in support - such as Viximo
Increased third-party integration of virtual goods into SocNets and
virtual worlds
45. Virtual Goods Revenues (USD)
15bn
12bn
9bn
6bn
3bn
0bn
2007 2008 2009 2010 2011 2012
Source: KZero. Includes VGs from VWs, socnets and cross-world