View presentation video here: http://bit.ly/1O9XUZu Children are generally the first to adopt new technologies. Mobile gaming, with $21 billion in worldwide sales in 2014, presents a new nexus where brand holders, game developers and toy companies are seeking to connect with this avid, tech savvy demographic. Already we’ve seen some exciting successes, as both smartphones and tablets continue to become more pervasive. Because of its popularity, mobile gaming also offers important clues with regards to the future of interactive entertainment for younger audiences. In this presentation, we will review the current landscape for mobile games for kids, identify the most important drivers of change in this market and, finally, decipher the early signs of what’s to come.

1. THE VIEW
FROM BELOW
CASUAL CONNECT USA 2015
MOBILE GAMES FOR THE NEXT GENERATION
STEPHANIE LLAMAS, DIRECTOR OF RESEARCH
@STEPHINANERS @_SUPERDATA #CASUALCONNECTUSA

2. 2THE VIEW FROM BELOW | © 2015 SuperData Research | www.superdataresearch.com
| Playable media & games market research
Stephanie Llamas
Director,
Research & Consumer Insights
SuperData Research

3. Relevant market data and insight
on digital games and playable media
| Playable media & games market research
3THE VIEW FROM BELOW | © 2015 SuperData Research | www.superdataresearch.com

4. Relevant market data and insight
on digital games and playable media
Monthly analyses and industry reports
using digital point-of-sale data
| Playable media & games market research
4THE VIEW FROM BELOW | © 2015 SuperData Research | www.superdataresearch.com

5. Relevant market data and insight
on digital games and playable media
Monthly analyses and industry reports
using digital point-of-sale data
Understand what people play,
connect to and spend on
| Playable media & games market research
5THE VIEW FROM BELOW | © 2015 SuperData Research | www.superdataresearch.com

6. Relevant market data and insight
on digital games and playable media
Monthly analyses and industry reports
using digital point-of-sale data
Understand what people play,
connect to and spend on
A next gen approach
for next gen entertainment
| Playable media & games market research
6THE VIEW FROM BELOW | © 2015 SuperData Research | www.superdataresearch.com

7. | Playable media & games market research
7THE VIEW FROM BELOW | © 2015 SuperData Research | www.superdataresearch.com

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LANDSCAPE
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9. Worldwide mobile games revenue, 2015E
$24.1B
Total worldwide market for
mobile games, 2015E
North America shows
signs of stagnation but
the U.S. still goes strong
with almost a fifth of the
global games market and
$4.7B in revenue.
9
| Playable media & games market research
North America
$4.7billion
Latin
America
$1.8
billion
Asia
$13.2billion
Europe
$3.7billion
Rest of
world
$0.7
billion
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Kids mobile game market share of
WW mobile game market, 2015E
7.8%
2015E
$1.9BWW kids mobile
game revenue

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7.8% 9.3%
Kids mobile game market share of
WW mobile game market, 2015E
Kids mobile game market share of
US mobile game market, 2015E
2015E
$417MUS kids mobile
game revenue
2015E
$1.9BWW kids mobile
game revenue

12. 12
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75
100
125
150
175
J F M A M J J A S O N D J F M A M J
Mobile cost per install and average revenue per user, indexed
*Index compares a metric to a particular base month, specifically January 2013, represented by the value 100.
2014 2015

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0-5
6-9
10-13
PARENTS’ CHOICE
PARENT/CHILD CONSENSUS
WHATEVER IS COOL

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Outlets for
creativity
Simple gameplay
Complex
gameplay
Social aspects
Appealing
graphics
Iconic characters/
mascots
Cartoonish
features
Branding
Educational
gameplay
Game quality
preference
Simulation
Action
Arcade
Strategy
Puzzle
Sports
Racing
Other
Word
Adventure
Board
Mobile gaming preferences of US kids 8-11 years old

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US TRENDS
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PREMIUM
Monetization types for mobile games
• Upfront game purchase
• Premium+IAP

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PREMIUM FREE-TO-PLAY
Monetization types for mobile games
• In-app purchases
• Subscriptions
• Advertising
• Upfront game purchase
• Premium+IAP

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0
40
80
120
160
2014 2015E 2016E 2017E
$46M$49M
$44M
$42M
$107M$104M$100M$96M 42%
27%
31%
55%
30%
14%
US premium
upfront and IAP
revenue share
by age, 2015E
US premium mobile games revenue from kids
0-5
6-9
10-13
Upfront vs In-app purchases

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CONS
• Limited revenue stream
• Short lifespan (unless you’re
Minecraft)
• Doesn’t fun ongoing
development and support
PROS
• Largely COPPA-friendly
• Transparent
• Popular with parents
Premium kids mobile games

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0
100
200
300
400
2014 2015E 2016E 2017E
$344M
$317M
$273M
$245M
75%
19%
6%
US free-to-play
revenue share
by age, 2015E
US free-to-play mobile games revenue from kids
0-5
6-910-13

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CONTENT
• Easier to follow regulations
• Transparent
• Hard to make money
• Needs constant content
updates
CONSUMABLE
• Highest potential for spending
• Ethical gray area
• Highly regulated
• Competing with big studio
games
Free-to-play kids mobile games
CONSUMABLE vs. CONTENT IAP

22. 75%
19%
6%
22
| Playable media & games market research
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22%
39%
39%US free-to-play
IAP and subscription
revenue share
by age, 2015E
US free-to-play mobile games revenue from kids
0-5
6-910-13
0
100
200
300
400
2014 2015E 2016E 2017E
$44M
$37M
$31M
$22M
$300M
$280M
$242M
$223M
free-to-play vs subscription purchases
0-5
6-9
10-13

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Top 10 growing kids mobile games in the iOS app store*
*Retrieved 9/11/2015

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Top 10 growing kids mobile games in the iOS app store*
*Retrieved 9/11/2015
free-to-play IAP

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Top 10 growing kids mobile games in the iOS app store*
*Retrieved 9/11/2015
free-to-play IAP vs premium (no IAP)

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Top 10 growing kids mobile games in the iOS app store*
*Retrieved 9/11/2015
free-to-play IAP vs premium (no IAP) vs subscription

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Free-to-play kids mobile games
SUBSCRIPTIONS
CONS
• Hard to find on Google Play
• Less pricing flexibility
• Technical limitations
PROS
• Growing in popularity
• Transparent
• Predictable and recurring
revenue
Confirm Your In-App Purchase
Do you want to subscribe to
this super awesome kids
game for $2.99 a month?
Cancel Buy

28. | Playable media & games market research
28
OUTLOOK
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29. 5%
10%
15%
20%
1
1.55
2.1
2.65
3.2
2015E 2016E 2017E
$2.2B
$2.1B
$1.9B
1000000000
1550000000
2100000000
2650000000
3200000000
2015E 2016E 2017E
$505M
$478M
$417M
29
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forecastannualgrowthrate
Worldwide vs. U.S.
Kids mobile game revenue

30. 0
75
150
225
300
2015E 2016E 2017E
$46M$49M$44M
$107M$104M$100M
$44M$37M$31M $37M$35M$31M
$263M
$244M
$211M
30
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General F2P IAP vs. Kids F2P IAP vs. Subscriptions vs. Premium upfront vs. Premium IAP
US mobile game revenue from kids

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US mobile game revenue from kids — growth rate
2015E 2016E 2017E
0%
10%
20%
30%
40%
General F2P IAP vs. Kids F2P IAP vs. Subscriptions vs. Premium upfront vs. Premium IAP

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Young
audiences are
cultivated for
agency
Entertainment is
transitioning from
passive to active

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THANK
YOU!
Director, Research & Consumer Insights
Stephanie Llamas
stephanie@superdataresearch.com
www.superdataresearch.com
@_SuperData
@Stephinaners
#CasualConnectUSA