Tuesday, November 25, 2008

Tinker Bell appears in act of marketing magic

New toys called "Clickables" that link to the online world are hitting
store shelves for the holidays, and some 7.5 million fairy avatars that
children have created can will now be allowed to become privileged
members of the world for $5.95 a month.

Steve Parkis, the senior vice president of Disney Online Studios,
said makers of virtual worlds generally convert 5 to 20 percent of
visitors into paying customers with monthly subscriptions — which
enable users to buy better gags or weapons, pursue more interesting
quests or, in Pixie Hollow, make and buy outfits.

"Ten to 12 percent is where you want to be, 20 percent is very
successful," Parkis said of the conversion rate. "We would be in the
more successful range across the majority of our products."

Disney does not make its online revenue public. But, with a 10 percent
conversion rate and monthly fees from $5.95 to $9.95, Disney's online
worlds rake in an estimated $7 million a month, or $85 million a year —
on par with one low-budget hit movie.

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