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Infographic: Streaming TV’s Formula for Success

June 8, 2017

Take video games. Between 2012 and 2017, video games expanded faster than any other major content sector: music, film, newspapers, magazines, books, and pay-TV. The sector is projected to grow 28 percent between 2018 and 2022, according to PwC’s Global Entertainment & Media Outlook 2018–2022. Game publishers such as Electronic Arts (EA), Activision, and Take-Two Interactive have moved from a single stream — the one-time sales of packaged media — to a multiple-stream revenue model. Games are now marketed as digital live services, which offer the potential for content updates and in-game micropurchases of items that enhance player performance and personalize game play. At EA, 35 percent of the players of Madden and FIFA, the company’s two most valuable franchises, spend money on in-game purchases associated with its Ultimate Team game mode, where players manage a fantasy team and improve their squad by purchasing better players. Live services accounted for about 40 percent of EA’s US$5 billion in FY 2018 revenue, and were up 30 percent for the year. The trajectory is similar for both Activision and Take-Two Interactive.

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Infographic: Streaming TV’s Formula for Success