Nearly one-fifth of active gamers in the U.S. spend money on virtual items

The gaming business is undergoing a major shift away from subscription models as virtual items become a larger part of its economy, reaching almost $6 billion worldwide in microtransaction revenues by 2015, according to international research firm Parks Associates.

Gamers are investing real money in virtual items in Farmville, World of Warcraft, and other online games, to the point they are filing lawsuits to establish ‘ownership’ of these virtual goods. The enormous player base, availability on multiple devices, and the introduction of instruments such as Facebook Credits contribute to growing revenues.

The Parks Associates’ new report Online Gaming: Global Outlook finds 19% of active gamers in the U.S. spend money on in-game virtual items. In contrast, subscribers to premium online game services decreased from 35% in 2008 to 28% in 2010. Publishers of social games, like Zynga, have seen revenues explode as larger percentages of their customers opt to pay for virtual items. The same trend is visible for massively multiplayer online games, where companies such as Nexon America have managed to reach millions of dollars in revenues from microtransactions.

It is becoming increasingly difficult to justify subscription fees. Thanks to social games and free-to-play MMOs, both casual and hardcore players have the option of playing quality games online for free. The virtual-items model that has proven so successful in Asia is finally generating significant revenues in North America.

Calix to acquire Occam Networks

Calix, Inc. and Occam Networks, Inc. announced that the companies have entered into a definitive agreement for Calix to acquire Occam Networks in a stock and cash transaction valued at approximately $171 million.

The combined organization of Calix and Occam Networks is expected to provide communications service providers across North America, the Caribbean, Latin America, and select global markets with an enhanced portfolio of advanced broadband access systems, and accelerate innovation across the expanded Calix Unified Access portfolio.

The acquisition is expected to result in more access options over both fiber and copper for communications service providers to deploy, which could expedite the proliferation of advanced broadband services to both residential and business subscribers, including such services as high-speed Internet, IPTV, VOIP, Ethernet business services, and other advanced broadband applications.

State of the Worldwide Digital Television Market

The global market for television services continues to grow despite persistent economic challenges throughout the world. Most of this growth is occurring in digital technologies, with digital terrestrial and cable services supplanting their analog counterparts while IPTV providers fight to increase their piece of the television services pie.

Increased awareness of what is possible on the TV has driven consumer interest in these services, and competition has caused many providers around the globe to evaluate and introduce advanced TV features that leverage digital technologies. Companies in developed nations, including North America and Europe, are rolling out on-demand, interactive, and time/place-shifting offerings. Several providers in emerging markets, such as China and India, are working on digitalization of their services, and they are exploring the new features made possible by this technological shift.

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Parks Associates supports IPTV World Forum North America

Parks Associates is supporting the IPTV World Forum North America from July 20-21, 2009 at the Millennium Broadway Hotel, New York.

The IPTV World Forum was developed as a direct response to the rapid growth in the marketplace, bringing together operators, technology partners and content providers to explore and define the IPTV evolution. More Info