Gaming ARPU: Games & the Service Provider

This report assesses the market potential and challenges of integrating gaming applications with televisions and pay-TV services. It answers three key questions. Will game consoles become a pay-TV platform that competes with or complements services from established pay-TV providers? How much can service providers benefit by integrating games? Can integrated gaming features and services boost demand for connected TVs?

“TV gaming features are clearly coming,” said John Barrett, director of research, Parks Associates. “The question is whether they will be an ARPU driver like premium channels, an expected freebie like music channels, or an industry-altering path for console makers to challenge pay-TV providers.”

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Download Table of Contents (PDF)

The Bottom Line

1.0   Report Summary

1.1 Purpose and Scope of Report

1.2 Data Sources

2.0   Market Examination

2.1 Industry Value Chain Overview

2.2 Market Context

2.2.1    Game Consoles

2.2.2    Pay-TV Services

2.2.3    Connected TVs

2.3 Key Players

2.3.1    Technology Providers/Game Aggregators

2.3.2    Connected TV Manufacturers

2.4 TV-Gaming Business Models

2.5 Important Products & Services

2.5.1    Pay-TV-Gaming Services/Solutions

2.5.2    Connected TVs & Services

2.6 Key Announcements & Implications

2.6.1    OnLive

2.6.2    Playcast/HOT TV Gaming Deployment

2.6.3    Microsoft Partnership with BSkyB

2.7 Market Trends & Consumer Interest in Gaming Services

2.7.1    Consumer Research

2.7.2    Real-World Deployments

3.0   Technology

3.1 Streaming vs. Downloading

3.1.1    Download Approach

3.1.2    Streaming Approach

3.1.3    Streaming Console-quality Games

4.0   Forecasts

5.0   Strategic Implications, Conclusions & Recommendations

5.1 Conclusions

5.2 Recommendations

TV Gaming Value Chain
Revenue Relationships
Game Console Adoption
Digital Media Adapter Unit Sales
Technology Providers/Game Aggregators
OnLive’s Hardware Device
Connected TV Manufacturers
VIZIO’s Connected TV Remote Control
TV Gaming Revenue Models
Examples of TV-Game Advertisements
Examples of TV Overlay Games
Pay-TV Gaming Services/Solutions
Connected TVs & Services
XBox 360/Sky Player Avatar Viewing Feature
Most Desired Pay-TV Enhancements
Appeal of Pay-TV Gaming Features
HHs Interested in Pay-TV Gaming Features
Willingness to Pay for Single Player, Gaming Feature
Willingness to Pay for Multi-Player, TV Gaming Feature
Pay-TV Enhancements Most Likely to Lure Subscribers
Willingness to Switch to Obtain Feature
Households Using Pay-TV Gaming Services
Households Using Connected-TV Gaming Services

Publish Date: 4Q 2009

Pages: 48

Authored By:
John Barrett - Director of Consumer Analytics

Authored by John Barrett
Executive Editor: Tricia Parks
Published by Parks Associates

© December 2009 Parks Associates
Dallas, Texas 75230

All rights reserved.  No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America.

Parks Associates has made every reasonable effort to ensure that all information in this report is correct.  We assume no responsibility for any inadvertent errors.

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