Xbox's announcement to offer Netflix six months ago via their new Xbox Experience, propelled them ahead in the digital-living-room strategy. By February, 1 million Xbox Live users had downloaded the application and streamed 1.5 billion minutes of TV and movie content from Netflix. That means about one-tenth of Netflix's 10 million subscribers have watched via Xbox 360.
Xbox users are used to using the console to connect to the web. Of the more than 28 million Xbox owners today, more than 17 million, or about 65%, pay for Live, or internet-connected, service, according to Microsoft. Since the launch of 360, more than $1 billion has been spent on Xbox Live, with no signs of slowing -- spending on Live was up 84% in 2008 vs. 2007.
And in a recent survey on online gamers, NPD Group found that half of those who use a console for online play use an Xbox; that's compared with 29% for Nintendo Wii and 20% for Sony PS3.
Since the Xbox 360 launched in late 2005, the company has pushed the box as more than just the next iteration of the already-popular Xbox online-connected video-game console. After a lot of marketing, new content and feature deals, and several price cuts -- the Xbox is delivering on its original promise as the go-to entertainment box in the living room.
The extension of the video-game box began with Xbox Live, which launched in 2002, a year after the original Xbox console bowed. That initial version promoted co-mingling gamer play and interactive experiences but was really gamer-focused. It was the Xbox 360 and the launch of the Xbox Live Marketplace -- with its virtual storefront of not only hard-core-gamer candy but also the Xbox Live Arcade, featuring lots of old-school and female-friendly downloadable games, video-game and movie trailers, plus full movie, TV and music-video downloads -- that expanded its base.
And where there are people, marketers aren't far behind. Microsoft will run more than 100 different ad campaigns on XBox Live in the 2009 fiscal year, which ends June 30.
Most recently, for example, Honda signed on as the sole sponsor of Xbox Live Primetime's "Play and Win" game show, which starts May 15. It's the first time the automaker has partnered with Xbox -- and incidentally, it's counting on reaching more than just young males.
Xbox is offering a great way to associate brands with a fun, engaging and entertaining campaign medium.
No comments:
Post a Comment