social gaming: a nerd's revenge

Social gaming: a nerd's revenge

John Beveridge From: Herald Sun April 08, 2010 2:14PM

PICKING the next trend in the online world is always a tough ask.

Almost by definition, the "next big thing" goes from being an idea to a worldwide phenomenon faster than you can say Facebook.

Australian listed online advertising group Mooter Media yesterday unveiled a joint venture alliance with Hot Shot Media to become part of what is known as social gaming.

The idea is to merge the appeal of online gaming with the storage of photographs, competitions and the sort of social networking popularised by MySpace and Facebook.

Hot Shot Media managing director Chris Jermyn was coy about details of the launch of the company's biggest product later in the year but said it would be "on a global scale."

"It is going to be much broader than the demographic of online game users and will tap into the popularity of photographs," said Chris.

Unlike some online innovations, Chris said the revenue model was worked out beforehand and not as an afterthought.

While there would be free access for online games, revenue would come from "freemium" as players bought premium games content.

Online advertising would be driven by Mooter and there is the opportunity to sell physical merchandise such as digital photos on coffee mugs and T-shirts.

Chris pointed to solid online gaming revenue streams from offshore companies such as Zynga in the US and Tencent Holdings in China as proof that social gaming has a bright future. "What we are developing will surprise people, it is certainly not what they will be expecting," said Chris.

Under the deal, Mooter will get the first $5 million of revenues and all advertising revenue, after which revenues will be shared equally with Hot Shot Media's parent company.

Mooter Media shares shed 0.4 to close at 2.4 amid heavy trade.

http://www.heraldsun.com.au/business/fully-frank/social-gaming-a-nerds-revenge/story-e6frfinf-1225851435735

JB