February 20, 2022
Summary
The Interactive Home Entertainment industry has a Data Monetization Index (DMI) in the range of 48.15% to 99.96%. The DMI is driven by an intense focus on microtransaction and advertising revenue within the industry.
A higher DMI is generally preferable across companies and industries. By way of reference, internet companies have a higher DMI because most of their enterprise value is derived from data. For example, Google’s DMI is 93 percent as we will discuss in a later blog.
Data Monetization Index (DMI)
The YDC team recently published a Data Monetization Index (DMI) for the Interactive Home Entertainment industry. For example, the DMI’s for Activision Blizzard is shown here.
Defintions
- Data Monetization Index (DMI) = Data Valuation / Enterprise Value
- Data Valuation equals the value of microtransaction and advertising data products
- Enterprise Value = Equity Value + Long Term Debt – Cash, a key metric used in the investment community
