Activision Blizzard 4Q16 Earnings Call Notes

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Robert A. Kotick

King focused on advertising initiatives

“King also made meaningful progress with its advertising initiatives. Last year’s advertising tests had two primary goals: to design and build an outstanding ad platform that would actually enhance our users’ in-game experience, and to deliver significant value to advertisers. We’re encouraged with the early results. In most tests, our users play more game rounds, spend more time in the game, and have a self reported better game experience with advertising. Additionally, our platform delivers meaningful value to advertisers. ”

Trying to grow consumer products business

“Great question, Eric. It’s Bobby. I think Disney is a great example. They’ve figured out probably better than any entertainment company how to turn consumer products into a multi-billion dollar business, but also to increase the touch points for their franchises around the world. And so we’ve elevated consumer products to a new strategic pillar for the company. We hired Tim Kilpin who is a veteran of both Disney and Mattel, and we think that consumer products can accelerate growth by leveraging our IP and creating new ways for people to connect with our franchises, especially as we’re launching our e-sports leagues. If you think about consumer products as they relate to the NFL or the NBA, these are billions of dollars of revenues for the leagues, and we think they’ll be great opportunities for league and team merchandise. That’ll be important components of what we do in the consumer products business. Generally, we think creating more consumer touch points in a low capital investment, high-return way, adds tremendous value to the franchises”

Dennis Durkin

$1 billion of in game purchases

“For the year, we delivered record digital revenues of $4.9 billion, up 94% versus last year. The primary driver for our digital momentum is the continued growth of in-game content. As Thomas mentioned, in-game purchases were close to $1 billion for the quarter, and a record $3.8 billion for the year, more than double the $1.7 billion we had last year. We believe we still are in the early days of this important vector in our business with more opportunity ahead.”

Ricardo Zacconi

30 min per day of candy crush gameplay

“So, first of all, we have a large user base, but more importantly, it’s a very engaged user base. You’ve heard earlier Thomas saying that we have more than half an hour of gameplay per player per day, and we think this is an attractive opportunity, a very attractive opportunity for advertisers. It’s a very engaged user base.”