Question about Secondary / non-exclusive Flash game licences

Discussion in 'Indie Business' started by barrygamer, Jan 31, 2010.

  1. barrygamer

    Original Member

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    Help! I've read a few descriptions of these but I must be too thick to understand them… :(

    As I understand it, a developer sells a non-exclusive license to a portal (via FlashGameLicense or wherever), allowing the site to host the game site-locked for a fixed one-off fee. And, possibly adding some branding etc, as part of the deal.

    BUT, how can a site put a value on this deal? If I sell to site x for some price, then sell licenses to a bunch more sites, doesn't it make the first deal worth less to site x? Or, if I put the game on my own site and market the hell out of it, the first deal will again be worth less to the purchaser.

    The FGL site doesn't imply that these deals have any clauses preventing further deals with other sites.

    barry
     
  2. Nexic

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    Non-exclusive means just that. In these cases the website is simply buying the right to have a branded version on their own site. Usually these type of licenses are sold much cheaper than any exclusive license for obvious reasons.
     
  3. Spore Man

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    There is value in getting rid of other site's branding that would otherwise steal traffic away when players click "play more games".
     
  4. kevintrepanier

    Original Member Indie Author

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    Allowing the developer to sell non-exclusives is part of the "Primary sponsorship" model. Before FGL, this model did not exist and there was only the exclusive sponsorship model which did not allowed for that. Some sponsors will still bid for exclusive sponsorship today for the reasons you mention (and others) but the primary sponsorship is much more common now as this is really advantageous for the developers.

    As for the non-exclusives, you get it right. Site-locked version without branding from the primary sponsor and no in-game ads. Sometimes (often) they will even make you remove the link to your own website. Sometimes an API integrated. There is over 12,000 flash portals on the web, so selling a few non-exclusive licenses does not reduce the value of the primary sponsorship significantly. Not all portals buy those either. Some don't see value in them, others don't host games otherwise, as they wish to keep the traffic they got in the portal instead of losing them to some advertiser.
     
  5. barrygamer

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    Ah yes, thanks, I am getting there. (someone write a Dummies guide, with pictures!).

    So, the value to secondary sponsors isnt 'lost' by others also having the game. People dont usually google a particular flash game, so it doesnt matter - its about total traffic for the site and keeping people there for the ads.

    One question about the Primary sponser: can they distribute the game themselves to others? Is it not site-locked for them? I don't now see the advantage to the Primary sponsor compared to secondary (!), both have their branding and links. Unless the Primary sponsor gets the game as exclusive for some time period (?).
     
    #5 barrygamer, Feb 1, 2010
    Last edited: Feb 1, 2010

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