Direct-to-consumer stores capture an increasingly large share of major mobile publishers' revenue

Major mobile publishers are moving significant portions of their spending away from traditional in-app billing and into direct-to-consumer web stores. Recent second-quarter figures show Playtika generating $286.9 million through D2C channels, representing 39.3 percent of company revenue. MTG's Playamp midcore division reached 51 percent direct revenue, while Stillfront reported 46 percent of bookings through D2C channels.

G5 Entertainment's store represented more than a quarter of gross revenue, and DoubleDown Interactive generated more than half of its social-casino revenue directly. The percentages explain why Apple and Google's payment policies remain such important industry stories. Moving purchases to a publisher-controlled store can significantly improve margins, especially when a title generates hundreds of millions of dollars annually.

Direct sales also allow companies to own more of the customer relationship and offer loyalty incentives unavailable through standard storefronts. The trade-off is operational complexity: publishers have to handle payments, fraud, customer service and regional tax requirements themselves. What was once an experiment available mainly to the very largest free-to-play companies is rapidly becoming standard infrastructure for established mobile live-service businesses.