Exploring the Future of Direct-to-Consumer Strategies at GamesBeat Summit 2024

At the GamesBeat Summit 2024, industry experts discussed the rise of direct-to-consumer (D2C) models in the gaming industry. Discord SVP of product Peter Sellis and Coda COO Rick Phillips shared insights on how companies can effectively implement D2C strategies in their products.

Sellis highlighted Discord’s success in D2C by focusing on enhancing the free product experience, such as creating servers for chatting with friends, and then offering additional value through paid Nitro subscriptions. However, the challenge lies in deciding which features should be included in the free version versus the paid version.

To address this, Discord introduced sponsored Quests and cosmetics in the Discord Shop, where developers provide content for in-game rewards and items, and profits are shared with them. Sellis emphasized the importance of a diverse portfolio to avoid making sub-optimal decisions for consumers.

Phillips emphasized the need for a balanced game experience before implementing monetization strategies. He stressed that monetization should be viewed as a way to enrich the player experience and build long-term relationships with players.

While D2C models are gaining popularity, Phillips cautioned that launching a successful web store requires time, iteration, and testing. He advised publishers to continuously adapt to changing consumer behavior and trends to create the best experience for customers.

Overall, the experts at the summit agreed that D2C strategies can be beneficial for publishers, but success requires a thoughtful approach, continuous testing, and a focus on enhancing the player experience.