MORE THAN GAME (MTG) is a video game platform poised to revolutionise the hispanic gaming world. From development, through distribution and into sales, MTG is unique in combining Business Intelligence and technological capacity to provide an integrative e-commerce platform for (multi-format) video game development and sales. KITE Invest spoke with MORE THAN GAME Director, José Luis Feito, and team about how the startup is on the path to great success.
KITE Invest: How does MTG manage the parallel needs of their clients (mass media and gaming developers)?
José Luis Feito: MORE THAN GAME mission is to disrupt Latin America’s digital game market through our digital games distribution platform, the support of main media communication groups, and as leading worldwide developers providing gamers important rewards, reputation and social recognition.
We are expanding the market through a massive media exposure, increasing developer’s sales, generating a significant revenue stream for media groups and getting relevant benefits for our clients and partners.
KITE: What are MTG’s main revenue streams?
JLF: Revenues come directly from the user, 90% comes from the trade and spending of games, digital goods and value added services, and the other 10% from advertising.
Advertising revenues come from sponsors, contests, auctions, events and etc. The company gets between 40% and 100% of each product sale, depending on whether it is from a third-party or self-developed.
KITE: In securing an important new key partner MTG has opened up to an innovative future of video gaming including distribution via TV channel. Why did MTG go about securing such crucial affiliations?
JLF: MORE THAN GAME has entered into partnership agreements with broadcasters and media groups to bring our services to large audiences, in order to reach the critical mass necessary to achieve profitability dropping timelines, minimizing risk and investments.
KITE: How does MTG appraise the potential of new services and revenue streams?
JLF: Our main goal is to sell third party games and own IPs throughout our own digital distribution and communications platform.
The company seeks to occupy as much of the value chain as possible, by reaching agreements with operators of relevance in those services where they add value, and sharing with them a part of the revenue model.
KITE: MTG sees itself as the future authority in the gaming industry of Spain and LATAM, what steps will MTG take to secure that vision in 2015?
JLF: Currently we are arranging the company for an imminent launch and a forthcoming explosive growth. MORE THAN GAME will be launching through a strong release marketing campaign in Spain. We are looking for cash to expand the business to LATAM during 2015. We want to move as quickly as possible to preserve first move advantage and occupy a significant market share.
KITE: How does MTG envision their key activities shifting to take account of the inclusion of 300million+ LATAM gamers?
JLF: We are going to repeat the same business model we are applying in Spain, huge marketing campaigns and assure Gamers important rewards, reputation and social recognition.
KITE: The rapid and complex expansion requires a total capital injection of €3.000.000, would you like to break that down into composite parts and explain what investor benefits you can offer?
JLF: The LATAM region has plenty of opportunities. As a young market it will experience a 14% YoY growth in video game revenues by end 2014, dwarfing both the EMEA (12%) and North America (1%). This makes LATAM the second most rapidly growing games market in the world, exceeded only by APAC region (15%). Brazil and Mexico account for the biggest share of total LATAM 2014 revenues, with Brazil generating $1.38 BN and Mexico $1.0 BN.
Proposal for investor:
Capital, Series A – €3.000.000 x 10% Company Shares
Technology: Integrating new advanced features that will increase sales and improve customer and business partner’s management
Expansion: LATAM Corporate presence, Globo Media (Brazil) and Televisa (Mexico) MTG Platform integration
Own IPs: Improve margins significantly