How Angry Birds Drives Revenue by Giving Away Games

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Jan. 7 (Bloomberg) -- Niccolo De Masi, CEO at Glu Mobile, discusses how the “freemium” model drives the mobile gaming market on Bloomberg Television’s “Market Makers.”

In town.

It is a win for the consumers and content for raiders.

-- creatures.

By removing the barrier, umass and will he expand the audience of people will actually play your content for the actual content creators.

We are turning what is a simple transactional relationship with the consumer into a permanent relationship, and ongoing service.

We are providing what we can match the effective demand curve to each and every individual consumer.

It expands the market, and told reagan's -- and builds brands.

How much more money?

I let my kids upload games about even think about it.

Within hours if not minutes we they made two different levels of a have to pay for the third level and the fourth level.

At the end of the month, my bill is much higher if i just bought the games.

How much more money are you making?

Apple has made $10 billion of money in the app store.

Visit business model is 75% of that.

-- this a business model is 75% of that.

We made the pivot from premium to feree-mium in 2010. we have been going since 2001. it is hard to get a direct comparison.

From our own internal estimates and experiments, a factor of two or three more as we move from premium to fre-me-mium.

You are a grown adult.

You might look at the free game and say it will cost me this much money to a lot of these features and decide you do not want to spend all that dough.

It is not so easy with kids.

If it is not kids making up the majority, they are way up there.

They are a large percentage.

What do you do about that?

All they need is to have access to a credit card account and then it is bombs away.

I reject the notion that there are not really strong parental controls for the android and apple systems.

Apple truly cares about is brand . so does google.

There are quite restrictive controls parents can put on these stores.

You do not have to give your children your password to your itunes account, etc.

There are hundreds of millions of people everyday that are playing a free to play cap.

There were always be a parent or two that probably unwisely give their children a password.

Every transaction has to be doubly confirmed for.

Whether you're spending a dollar or $10, apple and google will say are you sure you want to spend it?

You say yes.

You put your password in.

As a whole, the environment provides a rewarding environment for the consumer and content creator.

The vast majority people pay nothing.

95% to 99% are not spending money.

They're just looking at advertising.

What complaint volume are you getting for those that messed up and their kids have their password and the next thing they know they have played for six levels.

How many complaints?

It is a low rate for apple and google.

It is a very user-friendly system.

What we do in the free to play model is a cross between a console game and a website.

We thank you for joining us and sharing your experience as

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