Transmedia storytelling is booming – just look at how the popularity of Five Nights at Freddy’s game-based IP exploded, or the success of video games based on films like the recent one Indiana Jones Title. At the other end of the ecosystem, the world of user-generated content (UGC) is growing, with hundreds of millions of viewers consuming content created by players themselves or by modders.
“Seeing how these worlds intersect and thinking about what tools are necessary, what economic models are necessary to facilitate the translation of fandom into content creation through mods is really exciting,” says Nicholas Tuosto, founder of GoodGame Advisors. “Particularly the power of this IP, which translates into this engagement and fan base and really creates new experiences.”
He spoke with Uri Marchand, CEO and co-founder of Overwolf, Nate Spell, founder and CEO of Barrier Four, and Eugene Evans, SVP, digital strategy and licensing at Wizards of the Coast, about their IP and UGC strategies at this year’s event GamesBeat Insider Event: “Blurring Boundaries: The Convergence of Film, Music, Television and Games.”
Evans works with world-class developers and publishers to develop games across WoC’s diverse IP portfolio: everything from Dungeons and Dragons and Magic: The Gathering to Monopoly, My Little Pony and Mr. Potato Head.
“As part of this strategy, we have made it our mission to explore the world of UGC very comprehensively,” he explained. “We really believe it’s part of the fabric of how to successfully – both commercially and in terms of promoting fandom – bring intellectual property out into the world and to the fans who want to interact in these universes.”
Empower fans and keep intellectual property alive
UGC is unique in its ability to extend game life and engagement compared to traditional content updates. The tools and creation pipeline available to users make it easier than ever to deliver content in-game in a safe and moderated manner, says Marchand, in contrast to the lengthy and expensive pipeline of a studio release.
“With UGC, they create something that people want to consume. It expands and invites everyone to join in,” he explained. “These tools allow them to achieve high quality, high fidelity and brand consistency in a very short period of time.”
Playable media combines cinematic storytelling and interactive gameplay in exciting new ways, said Spell.
“We took Michael Scott and the other characters and Robloxified them and inserted them into the world of Roblox in a way that players would recognize them, resonate with them and obviously enjoy them,” he said. “There are a few options.”
Step one is leisure activities The office Characters. Step two is to build this into an existing game or integration. Making it actually playable and immersive takes it to the next level and provides a deeper way to connect with the audience.
“We’re still early in our approach, but Roblox is excited, players are excited, and brands are excited about what’s possible with something like playable media,” he added. “The endgame is that we get it to a point where the actions of the players determine the course of the story.”
Protect the value of intellectual property
If you like IP Power Rangers will be added to Arkit must be done in a very high quality and authentic manner and fully adhere to the brand guidelines. But it’s a whole different ball game when you invite third-party developers to interact with your game and your IP. This creative engagement by modders and developers seeking to build on an intellectual property raises questions about the value of intellectual property and how to protect it. UGC offers a lot of freedom to fans’ imaginations, but there’s always a need to draw a line, Evans said.
“As IP owners, we always try to ensure that there are some guardrails and protections around what can happen to that IP. There are always limits,” he said. “You have to be willing to give up a certain amount of control, but ultimately the value is there.”
Modding in particular, for example, has allowed people to come back and revisit Baldur’s Gate in ways that Larian wouldn’t have anticipated – and yet these mods remain respectful and true to the game’s D&D-based world.
But there are also cases like the role-playing game server for Grand Theft Auto, where the content is often off and sometimes perhaps crosses the line, says Tuosto, but the game studio is only responsible for the original IP and can’t necessarily be held responsible for user-generated content become.
“I think it has to do with the question of authenticity,” Evans said. “If you saw a company trying to implement some of these ideas that fans are doing on platforms like TikTok, you certainly wouldn’t take it seriously. That’s why the influencer community exists and works, because their fans say, ‘Look at what I did with this content,’ almost in contradiction to corporate oversight.”
Platforms like TikTok and YouTube expand the concept of UGC, providing a place for things like mashups and recut footage, as well as a hundred other ways a fandom expresses their love for a product.
“As long as this is happening in this regard, we should embrace it and try to relinquish control as much as possible,” he added.
The development of a business model
UGC is hardly a new concept – almost 20 years ago, players were creating entirely new levels for Quake, with no economic incentive. Their main motivation was the community that formed around the game. But today the dynamic has changed: many studios believe that if someone invests time and energy into creating it and others enthusiastically pay for the content, that work should be compensated.
“The only north star we have for the company is how much our developers make,” Marchand said, pointing to an Ark developer who made about $50,000 selling mods. “That’s one of the things we celebrate internally. This is exactly the future we imagined. The more we provide these tools and monetization opportunities, integrate branded experiences into these games, and engage with the community in very fun and authentic ways, the more developers get paid.”
Overwolf paid creators $200 million last year alone, and the industry’s overall growth has been extraordinary. But while UGC almost always helps extend the life of an otherwise premium product that may spike and then decline, many UGC platforms still struggle to develop an effective and predictable business model that enables content monetization.
“We continue to experiment to understand what works on these platforms,” Evans said. “But it’s still difficult for a company to look at it and say, ‘Okay, can we predict this the way we can currently with other platforms and other companies?’ We’re not quite there yet.”
