ASX Spotlight Series in Hong Kong: Animoca Brands Corporation Limited (ASX:AB1) Managing Director, Robert YungWe’re a mobile game developer, we develop our own games in-house and we also act as a publisher for third party game studios. And we serve a global audience from here in Hong Kong. So we develop casual mobile games and we distribute them on the platforms built by Google and Apple around the world.
So the focus really is in building great entertainment content for families and for children and we leverage third party intellectual property. So we work with great brands you would know and love, like Garfield, Astro Boy, Ultraman, Doraemon and we create original games featuring those characters.
So today the mobile game market globally speaking is about $40 billion, and that’s the revenues transacted through the app stores. Separate from that, you have advertising revenue and advertising on mobile is about $133 billion, in 2015. So contrary to what a lot of people believe, gaming is not a niche entertainment product, it’s a general entertainment medium. Because today, the market for games is actually bigger than all the other entertainment mediums outside of television. So we’re bigger than feature film, we’re bigger than the music industry.
The biggest opportunities I think stem from several factors. One is that there continues to be an increasing rate of Smartphone penetration around the world, particularly in developing markets. So Southeast Asia for example, the game market is growing in excess of 50 per cent. But even in so-called mature markets like Western Europe, North America, Australia, we see games spending in mobile games, growing upwards of 25 per cent year-on-year. On top of that, there’s also consolidation in the industry as it matures, so we see a lot of opportunity there for M&A and other kinds of growth as well.
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