Commentary

The search for a new playing experience precedes the pandemic

Many amusement machine operators continue to use the "dollar-a-minute" equation on video amusement and some immersive entertainment, oblivious to the experiential entertainment movement that ushers in a new era.

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October 12, 2020 by Kevin Williams

For some time, I have observed that the amusement and attraction experience has been undervalued by some in our industry. Those operators not sure of their customer offering have gone for a simple metric that sees a "dollar-a-minute" equation on video amusement and some immersive entertainment, an equation that has not changed since the 1980s, and has become established as gospel by an industry that sees itself as only offering pay-to-play entertainment.

Using financials of what is being offered based on calculations that are over 40 years old is not good. That the actual entertainment experience is also outdated has compounded a situation that was prevalent in the location-based entertainment sector leading up to the global health crisis.

The industry seemed to sell two types of immersive entertainment offering. The first was a facility-based social entertainment placement, a carnival of different sights and sounds, offered in small bite size portions. Each play duration lasts a minimum of 60 seconds to a maximum five minutes, ranging across platforms from Videmption to video amusement, and even to virtual reality.

Then there was the second type of offering. Borrowing heavily from theme park attractions and visitor experiences, this was a more linear entertainment, with a start and a finish, tailored to groups, and towards a higher sticker price. This is best seen with the evolution of Laser Tag, 4D theaters and with the inclusion of scaled down attractions placed into the venue. These offerings not only offered a better return and could deal with larger audiences, but also promoted the new way that players were consuming their play experience — the way they wanted to be entertained.

Walk-ins versus reservations

For some time, the amusement sector has still thrived on the "walk-in" traffic, individuals that happened on, or "were just passing," and saw that an entertainment facility was close by. This also included the "casual visit," people just walking round the game floor, gauging what is on offer at a location. This is totally different to the "reservation" approach where, like with a theme park, the disposable income has been set aside to spend at an entertainment venue for an allotted time and spend accordingly. This approach sees a dedicated effort to book the time, to want to consume hospitality and to attend in a group. Best illustrated, on average, a "walk-in" player will spend half an hour, compared to the average "reservation" group who will spend over two hours!

Along with the longer duration of "dwell," there is a difference in expectations from the guest. Rather than hunting out their entertainment, the reservation visitor wants to be entertained, and so is expecting the venue to offer an "experience." It is the difference in the experience that sees a much longer play time from each attraction or experience on offer.

A four-player interactive dark ride may have many of the elements recognizable to an amusement site venue owner from their "House of the Dead" or "Halo" theater-enclosure cabinets, but will be much higher themed and last 15 to 20 minutes (and be priced accordingly). A different price model, linked to a dedicated secondary offering through high quality hospitality, has separated these venues apart.

Re-emerging from the lockdown of the pandemic, and suddenly now under new COVID measures, all facilities now find themselves looking at "reservation" business, with "walk-in" becoming a thing of the past. And the question is, how many of them can up their game to offer an experience that will warrant the obvious increase in ticket price this will entail?

As seen in Europe, the amusement offering is different in many territories, more a visitor attraction and location-based entertainment offering than an amusement site approach. This dining entertainment approach has seen a higher price able to be reasonably changed, and the adoption not of snack payment metrics like tokens and card swipes — but for ticket booking and longer player dwell time.

The social inclusion factor

Another aspect of offering an experience is the inclusion of social inclusion — the ability for the guest to share information and images of their time at site, and what they have achieved. The often-mentioned "Fear of Missing Out" is a factor in driving the use of social media.

You will notice, in much of the latest developments we are covering, we are commenting on the inclusion of a social media app element to the latest attractions and platforms. That added "takeaway" is a special element, building repeat visitation and drawing a higher experience price. These are all elements that are missed by the traditionalists in the amusement and attraction sector, but are not the future revenue drivers for those in the market who will survive.

That many arcade operators failed to even consider adopting smart payment is just one example of the reticence to moving from a snack entertainment model. As few really come to terms with the guests' needs, they are just treating video amusement as a derivation of the coin-op vending industry.

It is the need by the mature playing audience that saw longer stay entertainment offerings in the cast of the traditional arcade gain traction such as "Punch Bowl Social" and "Dave & Busters." Still snacking — but to a high quality of experience.

The amusement trade will now be faced with an impossible task, bringing some of its membership into the experience entertainment mindset — or realizing that we are about to see an industry fragment, as a new revolution of experiential entertainment drives the sector.

In conclusion, I do not think that any of us would argue that things are about to majorly change for our business. But not all change is bad, and not all situations need to be approached with an air of despondency and defeat. We are all going to have to look at our businesses afresh — but we must also understand to retain (and not abandon) the fundamentals that makes our industry a much loved and cherished entertainment medium.

(Editor's note: Extracts from this blog are from recent coverage in The Stinger Report, published by KWP and its director, Kevin Williams, the leading interactive out-of-home entertainment news service covering the immersive frontier and beyond.)

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About Kevin Williams

Along with advisory positions with other entrants into the market he is founder and publisher of the Stinger Report, “a-must-read” e-zine for those working or investing in the amusement, attractions and entertainment industry. He is a prolific writer and provides regular news columns for main trade publications. He also travels the globe as a keynote speaker, moderator and panelist at numerous industry conferences and events. Author of “The Out-of-Home Immersive Entertainment Frontier: Expanding Interactive Boundaries in Leisure Facilities,” the only book on this aspect of the market, with the second edition scheduled for a 2023 release.

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