ENTERTAINMENT BUSINESS MODEL
ACTIVITY 8
Iker A. Hernández Martínez
Karla Paulina Mendoza Águila
Luisa Fernanda Hernández Vences
Orlando Saúl Vásquez Méndez
Ana Cristina Sahagún Ramírez
TYPE OF CUSTOMER RELATIONSHIPS
The customer relationship for the videogame industry can be characterized by several types of
relationships, specially if we are talking about motion charged game controllers...
Personal Assistance: Direct interaction with customers such as in-person
interactions, email, and phone calls for immediate support during and after the
purchasing process; this to enhace customer satisfaction and loyalty.
Self-Service: Provide FAQs, user manuals, and tutorials allowing customers to find
solutions on their own in an independent way.
Automated Services: Chatbots on the website to assist customers, this way we
can improve efficiency and maintain a satisfactory level of service.
Communities: Establish online forums and social media groups where customers
can share experiences, tips, and solutions. This approach allows users to support
each other and fosters brand loyalty.
REVENUE STREAMS
Freemium Model Fernanda Hernández
This type of model is used when a company offers basic or limited
features to users without cost and then charges them a premium model
where they can get supplemental or advanced features.
Companies often uses this type of model to offer a “free trial” for users so
that they can learn about the business and then offers them to stay by
buying the premium version. (Segal, 2024)
For the videogame industry, this type of revenue is often used for mobile
games where they let you play the full version of the game but stopping
once in a while to show some adds, offering you the option to buy the
“premium version” without this adds.
Another big example of the videogame industry are videogames where
they give you free play anytime, but if you want to get some skins or
accesories or similars, you have to buy them.
Events or Ticket Sales Paulina Mendoza
It envolves generating income by selling access to organized gatherings. These can be from
large-scale concerts and festivals to specialized workshops and conferences. Is typically
derived from the sale of tickets, which can vary in price based on factors such as seating,
access level, and event type (FasterCapital, n.d.).
It creates excitement and anticipation among potential attendees. High ticket
sales can indicate strong demand, allowing organizers to gauge interest and
adjust their offerings accordingly (Statista, n.d.).
In the videogame industry, the income is generated through hosting and selling
tickets for various gatherings such as conferences, expos, and tournaments.
By selling tickets for physical or online attendance for access to the conferences and expos (TicketLeap, n.d.).
Generate income by creating competitive gaming events where ticket sales include entry fees for gamers and
admission for audience.
In this events, there can be an additional income from selling our own branded merchandise, increasing the visibility
and engaging with fans. This way we foster loyalty around our brand.
USAGE FEES Iker Hernández
In the video game entertainment industry, this type of revenue refers to
customers paying for access to certain features or services within a game
or gaming platform. This model allows companies to generate ongoing
revenue by charging players each time they use specific content or
services, without needing to purchase a full game or additional
permanent items (Fortune business, 2024).
EXAMPLE
One example could be cloud gaming platforms like Google Stadia or
NVIDIA GeForce Now. These platforms charge players to stream games
from their servers without requiring users to own powerful gaming
hardware. Instead, users pay a fee (either per session or as a
subscription) to access the platform’s infrastructure, which allows them to
play high-end games on low-end devices (Devsinc, 2023).
REVENUE STREAMS
ORLANDO SAÚL VÁSQUEZ MÉNDEZ In the video game industry, licensing is commonly used for:
REVENUE STREAM DESCRIPTION 1. Characters and intellectual property: Granting permission to use
characters, stories, or worlds from a game in other media, such as
movies, TV shows, or comics.
LICENSING OR FRANCHISING 2. Technology and game engines: Licensing game technology, such
as physics or graphics engines, to other companies to develop their
Licensing is a business model in which one own games.
company (licensor) grants another company 3. Copyright: Granting permission to use music, sounds, or visual
(licensee) permission to use its intellectual effects from a game in other projects.
property, such as characters, logos, brand
names, technology, or copyrights, in exchange EXAMPLES
for a fee or royalty. The video game company, Blizzard Entertainment, licensed the rights to
its game "World of Warcraft" to the film company, Legendary Pictures, to
produce a film based on the game.
- The video game company, Epic Games, licensed its game engine,
Unreal Engine, to other companies to develop their own games.
Mario Bros is a classic and valid example of licensing or franchising in
the video game industry.
Nintendo, the company that owns the Mario Bros franchise, has licensed
the rights to its character and universe to various companies to create
World of Warcraft Mario Bros multiple contents.
ASSET SALE Cristina Sahagún
It refers to transactions where customers make a one-time purchase of
goods or services. This model provides immediate revenue but may lack
sustainability over the long term, as it relies on continuous new customer
acquisition rather than ongoing relationships with existing customers.
In the video game industry, asset sales cn be show in various forms like the
sale of physical games, downloadable content, and in-game purchases.
In the case of a motion-charge video game controller, customers pay
upfront for the controller, which provides immediate revenue. Once sold,
the initial transaction does not guarantee future income unless
customers return for additional products or services, as videogames.
While asset sales like those of motion charge controllers provide immediate
financial benefits, they may require additional strategies—such as offering
complementary products or services—to ensure longterm sustainability in a
competitive market. Incorporating features that enhance user experience
can help maintain customer interest.
BUSINESS MODEL OF
OUR CONTROLLER
Transactional Business Model
We’re planning to design and produce our own controllers, so that
we can get the maximum benefit from it, by giving retail and e-
commerce stores the best prices, so that they can also give our
clients this best prize, having a win-win situation where we can earn
a lot of money.
Also, with this type of model, it gives us the liberty to launch new
models and upgrade our initial product so that consumers can get
a lot more of our products because of the benefits it can give them
to purchase the brand new model.
REFERENCES
FasterCapital. (n.d.). Event ticket sales: Boosting revenue streams: The art of selling event tickets. Retrieved from https://fastercapital.com/content/Event-
ticket-sales--Boosting-Revenue-Streams--The-Art-of-Selling-Event-Tickets.html
Statista. (n.d.). Event Tickets - Worldwide. Retrieved from https://www.statista.com/outlook/dmo/eservices/event-tickets/worldwide
TicketLeap. (n.d.). How to make money hosting events like a pro. Retrieved from https://www.ticketleap.com/blog/how-to-make-money-hosting-events/
Fortune Business (2024) Media & Entertainment / Cloud Gaming Market, retrived from:
https://www.fortunebusinessinsights.com/cloud-gaming-market-102495
Devsinc (2023) Cloud Gaming Explained, retrived: https://www.devsinc.com/articles/cloud-gaming-explained-benefits-challenges-and-what-businesses-need-to-know
Segal, T. (2024, June 12). Freemium: Definition, Examples, and Pros & Cons for Business. Investopedia.
https://www.investopedia.com/terms/f/freemium.asp#:~:text=Key%20Takeaways,term%20was%20coined%20in%202006.
Tschang, F. T. (2007). Balancing change and stability: Licensing and the video game industry. Journal of Technology Transfer, 32(4), 331-346
Digital Ocean. (n.d.). 12 Startup Business Models (and How to Choose the Right One). DigitalOcean. Retrieved October 18, 2024, from
https://www.digitalocean.com/resources/articles/startup-business-model#what-is-a-startup-business-model
FDieffenbacher, S. (2024, September 16). Revenue streams in business model canvas. Digital Leadership. https://digitalleadership.com/blog/revenue-
streams/
