Earlier this year, a blockchain rewards platform Mfun tried to enter Indonesia’s game market. How can it help local developers to gain more users?
With nearly 50 million gamers, Indonesia is one of the biggest game markets in Southeast Asia & the world. But unfortunately, the local developers only get not more than 2% of the gaming revenue shared in the local market.
To overcome that problem, earlier this year one company tries to enter Indonesia’s game market: Mfun. Mfun is a blockchain rewards platform designed to capture more value within the digital ecosystem and redistribute the value to content providers and users.
Mfun was started in early 2018 because the founders felt that there are three main inefficiencies in the digital economy. Those are (1) users are not rewarded for their time spent on apps, (2) content providers are not able to monetize their advertising spend and (3) lack of transparency or trust. That is why they created this blockchain rewards platform to make it fun for users, efficient for content providers, and yet secure.
In this article, Gameprime.org had a chance to talk with Co-founder of Mfun, Brian Fan. Brian shares his insight about Indonesia’s game industry, why Mfun chooses Indonesia as their first market, and also how Mfun can help developers to gain more users and give benefit to gamers.
What do you think about Indonesia’s game ecosystem? And why you choose to enter Indonesia as the first market for Mfun in Southeast Asia?
According to Newzoo, Indonesia is the largest market for gaming in Southeast Asia with 43.7 million gamers spending a total of US$880 million a year. It is also the No.1 fastest growing market for games in Southeast Asia.
Indonesia’s gaming industry is dominated by foreign games with local game developers contributing less than 2% to the economy. We feel that Mfun can help support the local game developers with our ecosystem.
This is in line with Indonesia’s government drive to support local gaming industry and their effort to push transformation of its digital economy.
In your opinion, what is the main problem for Indonesian game developers to gain more users (especially local users)?
First, Indonesia’s gaming industry is dominated by foreign games with local game developers contributing less than 2% to the economy. And then second, developers are spending a lot of money on paid advertising through advertising middlemen but they are not getting a good ROI.
And last, while gamers in Indonesia will be increasing their spend to over 700 million in 2021, up to 30% of their spend is paid out to third-party payment providers.
How the blockchain technology that Mfun provided can help Indonesian game developers to solve that problem?
Currently, the unbalanced and inefficient in the digital economy is one big problem that is faced by Indonesian game developers. They have been spending a lot of money on paid advertising to acquire new users without getting a good ROI. This makes it really hard for local independent developers to challenge the global ones.
The game developers and publishers also noticed two different patterns:
- A lot of traffic is fraudulent, as the installs they are receiving are not real users; and
- Many of the real users don’t spend more than a few seconds on the app. So far, all of their marketing investment has been wasted.
Last but not least, they have to pay a hefty fee to third-party payment providers.
The blockchain technology allows Mfun to solve these problems by creating a rewards system for gamers. Game developers and publishers can now bypass middlemen to more effectively acquire new gamers. They can channel their current advertising spend into directly rewarding gamers with Mfun tokens. This way, gamers are more motivated to play more or try new games.
By redesigning the transaction flows within the ecosystem, Mfun will create efficiencies by bypassing middlemen and re-distributing the value that creates incentives for gamers, developers, and publishers to foster closer collaboration.
A cryptocurrency, Mfun tokens will be created to enable transactions within the Mfun ecosystem.