EA's Goal: $40 Million In Digital Revenue Per Franchise

By M.H. Williams

Electronic Arts CFO Eric Brown has laid out the company’s plans for a digitally distributed future, stating that EA would like to pull in more than $40 million of revenue in 10 key franchises.  In a Q&A with Lazard Capital Markets’ Colin Sebastian, Brown said that EA already has two franchises performing at the level required: FIFA and Battlefield.  Both brands have expanded into numerous business models and platforms, including mobile, Facebook, online free-to-play, and virtual item sales.

“We have franchises with digital attach rates well north of 10 per cent of the aggregate franchise revenue. We’re just over $40 million of digitally derived revenue for FIFA – that’s a combination of console DLC, full game downloads, mobile extensions and free-to-play micro-transaction based games,” said Brown.

Battlefield, we similarly have around $40 million of digital revenue. Again, that starts with the disk and extends out in these different ways. So we’ve had success thus far. What we’d like to do, we have these two franchises at plus $40 million digital extensions, what we’d like to do is get the next six to eight biggest franchises along and get tens of millions of digital revenue,” he added.

Brown used FIFA‘s presence in Korea as an example of a title migrating from a boxed retail product to a new free-to-play business model.  He talked about EA’s openness to all business models in order to get its brands into the hands of consumers.

“We’ve actually experienced a real world case study with FIFA in Korea, which was previously a purely packaged goods model and has now, not perhaps very recently, but over three years or so, migrated completely to a free-to-play model. You’ll see FIFA across every single platform, with every conceivable monetisation model. We co-exist across all revenue models, with some of our key franchises will have exposure across 10 different revenue models,” he said.

10 franchises, 10 revenue models.  Can they help EA take the number one spot back from Activision?

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