Game Developer Musical Asset TAM

Author: Felipe Budinich, updated: 03/08/2015

1,2
Estimated Total Companies by Segment

Size

Companies

Employees

42

201+

56

51200

~280

1150

~322

210

117.977

Total Addressable Market

We estimatethat the clients in the (DE) segmentsspend upto $~250 USD annuallyonmusicalassets3
to
4
output
~14.150 games per month
, opening up a target market of
$~25M USD forvideogame musical
assets.

Assumptions
1.The GameDeveloperCensusof20091
andgamejobhunter.comsLocalVideoGameCompanies2
listare
approximatelycorrectinhowmanycompaniesareoutthere.
2.My personal development experience (6+ years) and the music costpresentedon Polygons article3
are
approximatelycorrect.
3.Ludum Daresubmitted games4
isan appropriate metric to estimate theamount ofhobby/amateur game
developers(E).
4.Global GameJam participants5
isan appropriatemetric to estimate the amountof hobby/amateurgame
developers(E).

Leverage Points
1. Our target clients (DE) gather aroundlearning sitesandforums suchas theUnity Engineforums, and
gamedevelopmentcommunitiesandeventssuchasLudumDare4

andGlobalGameJam5

.
2. Vendors in our supply chain are late in their college yearsor are looking forsome quickwork for their
resumeaftergraduation.
3.Vendorsinoursupplychainmaybelocatedinareaswherewehavepurchasingpowerparityadvantage.
4.Wecanoffermusicgrantstodevelopersinordertoreduceoursupplychaincosts.
5.Noonehasyettocreatearenewablemonthlyfeesystemforintangibleassets.
6.Thereis anestimated +8.1%CAGR6
forthevideo gameindustry thatcouldlast until2017,increasingthe
demandforinexpensiveroyaltyfreeassets.
7.Ourbundledassetmodelreducesthecreativeoverheadofgamedevelopmentsprocesses.

Deal Breakers
1.Higherend(AC)andIndie(D)clientsdisliketheirarttobeinmultiplegames.
2.Hobby/Amateur gamedevelopers (E) may not have the budget to purchase music, andmay optforfree
alternativessuchasopengameart.orgorcollaborations.

References
1. Gamasutra Staff. (2009, December 21). Game Developer Census Reveals Considerable Canadian Expansion.
http://www.gamasutra.com/view/news/117440/Game_Developer_Census_Reveals_Considerable_Canadian_Expansion.php

2.Teall,Paul.(2014,October12).VideoGameCities.
http://gamejobhunter.com/blog/videogamecities/

3.BoucherVidal,Guillaume.(2014,July31).Whatdoesitreallycosttoopenanindiestudio?Allyourmoney,mostofyourlife.
http://www.polygon.com/2014/7/31/5949433/thecostofagamestudio

4.LudumDare.(2014,December8)LudumDare31Theme:EntireGameonOneScreen.
http://ludumdare.com/compo/ludumdare31/?action=preview

5.IlabacaJara,Carla,(2014,December8)Profesionalesyaficionadoscrearonvideojuegosen2das.
http://www.australvaldivia.cl/impresa/2015/01/27/full/6/

6.Newzoo.(2014,April19)TowardsTheGlobalGamesMarketin2017.Abroadlookatmarketgrowthbyscreen&region
https://s3.amazonaws.com/CGA_Report/CCNewzooSpringReportpages.pdf