Game rentals were deemed to hurt game publishers like EA, Activision, THQ, and many more. Many people believed that if games that are available for purchase can be rented, why buy it?
Yes, many people believed that concept because it is possible. But according to RedBox, offering game rentals may boost the game?s revenue. Wait?What?
Here?s a piece of reality that most game publishers have not realized until now. Rentals ?including those sold by kiosk-based rental companies?add incremental income for the publishers. It does sound good and unlike what common publishers know, it is true. According to Redbox director of video games Ryan Calnan, rentals allow players to get to see the game firsthand. If they like it, they will buy it.
Redbox began its operation back in 2011 and recently commissioned a survey by Interpret to track user engagement. The result of the said survey proved something that will change their perspective about video game rentals. According to the study, 50 percent of the customers who availed of Redbox?s services will buy a game if they can try it first.
That was a big number to have come across,”
“We’ve been talking to our customers for the last couple of years, and that’s the aggregate result that we got.” Calnan added.
The result showed that there?s a 20-50 percent conversion rate that rentals may turn into a sale. Calnan stated that it is somewhat ?Extremely healthy? and ?good for the industry?.
As the gaming industry evolves and more rental services are now being offered worldwide, it turns out that Calnan is right.
“So what we’re seeing is publishers supporting the notion of the recreational gamer bringing incremental revenue to the publishers and that this trial is leading to a conversion,” Calnan explained. “Very importantly, with that marketing reach that Redbox has, Redbox has become a very powerful information source to these customers. And Redbox is able to keep these customers engaged and keep the industry very healthy because of it.”
More and more publishers are now pairing up with these relationships to increase revenue. Later in the future, we will have more access to the games, experience their gameplay firsthand, and decide whether to buy or not.