The lights are on
As Xbox Live adds more perks (and fees) to its Xbox Live Gold subscription, users are spending plenty of time on the service doing things other than playing games.
Joystiq reported on some of what Dennis Durkin, COO and CFO at Microsoft's Interactive Entertainment Business division, had to say at the BMO Capital Markets Annual Digital Entertainment Conference, and it's pretty interesting. There are 25 million Xbox Live Gold subscribers out there now, and 40 percent – more than 12 million – of those subscribers use the service for its nongaming applications. Durkin called those users "very, very engaged," adding that it was good for business to have them listening to Last.FM, updating their Twitter feeds, or watching videos on Netflix or the new ESPN3 service. On average, Xbox Live users are on the service three hours a day.
While the revenue coming in from those 25 million subscribers isn't exactly chump change, Durkin says the service's DLC and games on demand business is even larger. "Obviously, the majority of the revenue that we get in this segment of our business, we share with our partners," he added.
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