SportsHero Secures 38% Margin Deal with XL Axiata to Reach 8.3 Million Indonesian PC Gamers
SportsHero has secured a two-year deal with Indonesia’s third-largest telco, XL Axiata, to market its iGV Family Game Pass, leveraging Direct Carrier Billing to tap into 8.3 million PC gamers. This partnership positions SportsHero at the forefront of Southeast Asia’s rapidly growing esports sector.
- Two-year marketing and Direct Carrier Billing partnership with XL Axiata
- Targets Indonesia’s 8.3 million PC gamers with affordable iGV Family Game Pass
- XL Axiata offers seamless subscription payments via mobile billing
- SportsHero expects at least 38% margin on gross subscription value
- Partnership aligns with Indonesia’s government-backed esports growth initiatives
Strategic Alliance with XL Axiata
SportsHero Limited (ASX: SHO) has announced a significant partnership with XL Axiata, Indonesia’s third-largest telecommunications provider, to market the iGV Family Game Pass over the next two years. This agreement leverages XL’s extensive customer base of approximately 57.5 million and its 12.4% market share to reach a substantial segment of Indonesia’s PC gaming community.
Central to this collaboration is the integration of Direct Carrier Billing (DCB), enabling XL customers to subscribe to the iGV Family Game Pass seamlessly through their mobile accounts. This payment method eliminates the need for credit cards or separate registrations, simplifying the subscription process and enhancing conversion potential.
Capitalizing on Indonesia’s Gaming Boom
Indonesia boasts a massive gaming population of nearly 150 million, with 8.3 million dedicated PC gamers, a prime target for SportsHero’s PC-based iGV product. The country’s youthful demographic, rising internet speeds, and government initiatives such as INTI 2024 and Presidential Regulation Number 19/2024 are fueling rapid growth in esports and gaming infrastructure.
SportsHero’s CEO Tom Lapping highlighted the strategic value of the partnership, noting that it complements their existing alliances with Indonesia’s second-largest telco and positions the company to capture a significant share of the burgeoning esports market.
Product Offering and Financial Outlook
The iGV Family Game Pass offers access to over 200 popular titles, including blockbuster games like Call of Duty, Elden Ring, and Grand Theft Auto 5, at an affordable monthly subscription price of IDR 65,000 (approximately A$6.30). SportsHero anticipates a margin of at least 38% on gross subscription value after partner costs, underscoring the commercial viability of the deal.
XL’s broadband services, including the premium XL Satu Fiber with speeds up to 50 Mbps, provide the necessary infrastructure to support a high-quality gaming experience, further enhancing the appeal of the iGV Family Game Pass to Indonesian gamers.
Broader Market Implications
This partnership not only strengthens SportsHero’s foothold in Southeast Asia’s largest gaming market but also exemplifies the growing convergence between telecommunications and digital entertainment sectors. By facilitating easy payment options and leveraging telco loyalty programs, SportsHero and XL Axiata are well-positioned to drive subscription growth and deepen customer engagement.
However, the ultimate success of this venture hinges on customer uptake and the effectiveness of the DCB system in converting XL’s vast user base into paying subscribers.
Bottom Line?
As SportsHero deepens its ties with Indonesia’s telecom giants, the next challenge will be turning access into sustained subscriber growth.
Questions in the middle?
- How quickly will XL Axiata’s customers adopt the iGV Family Game Pass via Direct Carrier Billing?
- What marketing strategies will SportsHero deploy to differentiate its offering in Indonesia’s competitive gaming market?
- Could similar telco partnerships be replicated in other Southeast Asian markets to accelerate SportsHero’s regional expansion?
