‘We have over 50% share of the mo­bile games rev­enue in In­dia’

Voice&Data - - INTERVIEW/ NAZARA - Ritu Singh

What is the cur­rent mar­ket share of your com­pany? How has it per­formed with re­spect to com­peti­tors in the last fis­cal?

Nazara has over 50% share of the mo­bile games rev­enue in In­dia and the com­pany has out­per­formed the mar­ket in gen­eral. It has posted 60% rev­enue and EBIDTA growth for the last fis­cal year con­tin­ues to grow at a rapid pace and is widely seen as a leader in the mo­bile games sec­tor in In­dia. To­day, Nazara is not only an es­tab­lished and renowned brand but is also among the top 3 play­ers in the do­main.

How has Nazara grown in the In­dian VAS space?

The com­pany has man­aged to see ex­cep­tion­ally good growth since the ini­tial round of fund­ing and sees a great po­ten­tial in fu­ture. We will continue to build up innovation­s and pro­vide the best ser­vices to the con­sumers in times to come. We reach con­sumers to­day through var­i­ous medi­ums, like car­rier desk, ad­ver­tis­ing in off-deck chan­nels, through apps stores such as the an­droid mar­ket place, and other free app stores.

In terms of in­no­va­tionH what are your key achieve­ments?

Nazara tech­nolo­gies has a strong fo­cus on mi­cro-pric­ing and freemium led mod­els which are the fu­ture of the in­dus­try. It has 150 mn ac­tive games club sub­scribers and is amongst the top 2 mo­bile com­pa­nies in terms of deck pres­ence in In­dia and was also ranked 17th in Deloitte’s Tech­nol­ogy Fast 50, In­dia 2010.

How much do you plan to in­vest in In­dia?

We will in­vest up­wards of 20 crore in the cur­rent fis­cal year. Un­til now, we have only raised a small amount of in­vest­ment from Se­quoia Cap­i­tal and they have been very close part­ners with us over the last few years but go­ing for­ward, as this In­dian

CEO, Nazara Tech­nolo­gies

mar­ket is scal­ing, we will be rais­ing more money. At an av­er­age it is about 70% that the car­rier takes and 30% that we get.

How does Nazara gen­er­ate rev­enues?

We gen­er­ate rev­enues by sell­ing mo­bile games to the end con­sumers, these are sold for an av­er­age price of 50 but we are also sell­ing day passes, eg, for 3, so there are di­verse price points. We are also get­ting rev­enues from ad­vergam­ing where the games are given away free and ads are em­bed­ded, but that is still very small. It may grow nicely over the next year or so.

How do you cre­ate aware­ness about your brand in the mar­ket?

Ma­jor­ity of our mar­ket­ing hap­pens through the mo­bile car­rier where we reach out to the users through our ex­ist­ing dis­tri­bu­tion chan­nels. We also aim to build our di­rect to con­sumer ef­fort which will in­clude spend­ing some money to build our brand and ser­vice and also hav­ing vi­ral com­po­nents.

How will your ap­pli­ca­tions help ser­vice providers in­crease their rev­enue?

Our game ser­vices and con­tent drive strong mo­bile in­ter­net us­age, re­peat us­age from cus­tomers, and sig­nif­i­cant mon­e­ti­za­tion through ads and mi­cro pay­ments.

The VAS play­ers need to delink par­tially from the op­er­a­tor and start fo­cus­ing on non-op­er­a­tor busi­ness in a big wayH do you plan any ap­pli­ca­tions on these lines?

Yes, I agree that VAS play­ers need to delink par­tially from the op­er­a­tor and start fo­cus­ing on non-op­er­a­tor busi­ness in a big way, and in this re­gard we have rolled out sev­eral di­rect to con­sumer mo­bile in­ter­net prop­er­ties which in­clude gCity and Gamesclub.

What are the chal­lenges that the VAS in­dus­try is fac­ing at large?

Poor rev­enue shares from car­ri­ers ob­struct­ing in­no­va­tion. Re­cently, Voda­fone has in­creased rev­enue shares and we have seen strong growth mo­men­tum on the car­rier.

What is your strat­egy to over­come the chal­lenge of price sen­si­tive­ness in the In­dian mar­ket?

The In­dian mar­ket needs to grow and ma­ture first. The other thing is that com­pa­nies in In­dia have to fig­ure out how they will dif­fer­en­ti­ate. There is a lot of con­tent com­ing in from the Western coun­tries in In­dia, whereas in coun­tries like China there are a lot of dif­fer­en­tia­tors and bar­ri­ers, so we think con­tent, plat­forms, and build­ing large com­mu­ni­ties are the ar­eas that need to be fo­cused on. More­over, Freemium model as well as ad­ver­tis­ing led gam­ing would be our key strat­egy to over­come the chal­lenge of price sen­si­tive­ness in the In­dian mar­ket.

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