A recent article by NewZoo shows some interesting insights into the Subscriptions Business Model.
We covered a lot of the details about creating a digital product that uses a Software As A Service revenue model in our Fortnite Seminar the other week. In case you missed it I recommend checking back and have a quick read. Subscription models can provide a different way of thinking about a products development and sales.
While subscription models are becoming more the norm what some companies are seeing is that families are much more likely to get on a subscription model. There’s an untapped potential, taking advantage of buying behaviour, trying to save money, and multiple users on a larger subscription cost, based on the research.
“In 68% of households that have children, the children and adults play games together”
Parents are searching for more value for money and end up giving money to industry infrastructure than their counter parts without children. Giving a subscription model that offers multiple users at a cheaper rate proved to be much more engaging for families too.
The introduction of mobile apps and consoles like the Wii have extended out the reach of the global gaming audience in to more family orientated demographics. And with the average age of gamers in Australia being 34 we can see how the buying and playing behaviour is evolving.
“11% of family gamers are big spenders on mobile games, compared to 7% of all gamers”
But we aren’t seeing nearly as many products take advantage of that market. Knowing that they’re more likely to spend on a software as a service style model is very important if you’re considering making a product.