Expanding Your Opportunity with Windows Phone 8 (and 7)

1. October 31, 2012 Expanding Your Opportunity with Windows Phone 8 (and 7) Todd Brix Senior Director Windows Phone Apps

2. More Opportunity • More Markets • More Monetization • More Efficient Dev Center • More Discoverability • *Fast Start*

3. More OpportunityWindows Phone Developer Annual Report % Q3-2011 Q3-2012 Community Size 54,000 171,000 + 220% Apps Available 29,000 120,000 + 310% Downloads/User 40.4 53.2 + 31% Markets 34 191 + 460%

4. Thank You!

5. Marketingto match the engineering investment “A Phone for Each of Us” More $ than Windows Phone 7 Big Splash with Windows 8 Over 400 unique apps included The New Windows Everywhere! A LOT more TV ads

6. 8 • Windows Phone 8 Manifesto

7. More Opportunity • More Markets • More Monetization • More Efficient Dev Center • More Discoverability • *Fast Start*

8. 7.5 & 8.0 Publish to 191 markets (free or paid) Submit to all 120+ new countries or regions! http://bit.ly/T9QP9J Store available for Developers and Consumers in 191 countries or regions. A subset of these countries allows developers to submit only free apps. 191 consumer countries available only for Windows Phone 8. Windows Phone 7.5 is available in 63 consumer countries or regions.

9. 50 languages New inWindows Phone 8 50 Languages Macedonian Norwegian (Bokmål) Persian Romanian Serbian (Latin) Slovak Slovenian Spanish (Mexico) Thai Turkish Ukrainian Uzbek (Latin) Vietnamese Albanian Arabic Azerbaijani (Latin) Belarusian Bulgarian Catalan Croatian English (UK) Estonian Filipino Hebrew Hindi Kazakh Windows Phone 7.5 24 Languages Italian Japanese Korean Latvian Lithuanian Malay Polish Portuguese (Portugal) Portuguese (Brazil) Russian Spanish (Spain) Swedish Chinese Simplified Chinese Traditional Czech Danish Dutch English (US) Finnish French German Greek Hungarian Indonesian 26 new languages were added with Windows Phone 8

10. More Opportunity • More Markets • More Monetization • More Efficient Dev Center • More Discoverability • *Fast Start*

11. The Monetization Equation You create amazing apps We simplify the monetization Higher Monetization Per User More Market Reach More Business Models More Payment Methods x = x

12. 8.0 New: In-App Purchase The best business model for most apps GROWS YOUR USER BASE ENABLES IN-APP UPSELL TO PAID ENCOURAGES REPEAT MONETIZATION Make app free Maximize Customer Reach Deliver additional paid value to subset of paying customers Sell premium features and content over and over

13. 8.0 The IAP opportunity: 4X revenue growth 4x In-App revenue growth from 2011($1B)>2016($4B) -eMarketer 93% of top grossing apps use in-app purchase – BusinessInsider 38% of app revenue will be from in-app purchase by 2016 – Juniper Available for Windows Phone 8 apps Use all available payment instruments Hardened API In-app purchase fastest growing revenue source, displacing paid purchases

14. 8.0 In-app purchase: a complete experience DurablesBuy once & own forever. E.g. New game levels, add-on maps, game items, eBooks, music, etc. . . ConsumablesUse once & buy over and over E.g. Game currency, gold coins, ammunition, game credits, time services, etc. . . Hand’s On A test of dexterity Coffee Cup Custom hot beverages Global Reach A strategy exercise

15. 8.0 In-app purchase: simpleto add & manage • Create In-App Item in Dev Center • IntegrateIn-App Item into app • Host Content (Azure, remote or in the app) • ChooseCountries and Set Pricing • Manage, Monitor and Respond We take care of payment and payout

16. 8.0 Options to retrofit IAP into your existing apps Divide and monetize Package with in-app purchase Reimagine Your App Keep 7.5 as is and add new capabilities in Windows Phone 8 version (high res graphics, more levels, …) Separate base functionality (free) from premium (paid) Enable new models only available through in-app: recurring purchases (game currency, tokens, eBooks) Tune when and how you show the in-app purchase to maximize conversion

17. 7.5 & 8.0 Mobile ads help monetize apps • Half of all app revenue in Windows Phone Store today comes from advertising Important source of revenue • Has industry leading eCPM • Integrated Windows Phone and Windows 8 ad reporting • Not available in all countries Easy to add the Microsoft Ad Control • Recommended use in countries where the Microsoft Ad Control is not available Easy to add (multiple) Third Party Controls

18. 8.0 New Global Payment InstrumentsNew ways for users to pay Microsoft gift card Redeemable at Bing Rewards (today) http://www.bing.com/rewards/redeem/all 38 countries Presented as option where available

19. 7.5 & 8.0 Mobile operator billing = Simple process Dazzler By Great Games, Inc. Included in the Wallet Default Payment Instrument if available PIN-Protected purchases (optional) Automatic backend process, no work required by Developers The Phone Company Up-to-date MO list: http://msdn.microsoft.com/en-us/library/windowsphone/help/jj215902(v=vs.105).aspx

20. 7.5 & 8.0 MO billing drives 2x purchases Enabling MO billing increased paid downloads 2x 75% of WP users choose MO billing over Credit Card Revenue per user is 2x higher where MO billing is available Mobile Operator 1 Mobile Operator 2 -21 -20 -19 -18 -17 -16 -15 -14 -13 -12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 -27 -26 -25 -24 -23 -22 -21 -20 -19 -18 -17 -16 -15 -14 -13 -12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Payment Type Mobile Operator Billing Credit Card

21. A Better Monetization Equation Business Model Higher Monetization Per User Market Reach Payment Methods x = x Download to Own Try before you Buy Advertising In App Purchase 63 ->191 markets Credit Card Debit Card Phone Billing Microsoft Gift Card PayPal More Models More Places More Ways to Pay x = x 4x the revenue 3x the reach 2x the payment coverage

22. More Opportunity More Markets More Monetization More Efficient Dev Center More Discoverability *Fast Start*

23. 7.5 & 8.0 Welcome to the updated Dev Center

24. 7.5 & 8.0 New experience New dashboard New submissionprocess New reporting • New Name • Clean interface • Integrated with MSDN • Quick access to SDK, forums, samples

25. 7.5 & 8.0 Easier to register and get paid • Online Tax forms • 191 markets • Integrated with pubCenter • PayPal registration & payout* • Shared account info with Windows 8 account * Only available in some countries

26. 7.5 & 8.0 Easier to submit & set price per market • Option to publish to all markets except ones with additional requirements • Thousands of beta testers for your app • Optimize pricing in each market(free or paid by price point by market)

27. 7.5 & 8.0 XAP: only one needed, many possible One App • You need only one XAP • You can have multiple XAPs linked to each App: • 7.1and 8.0 • 8.0: high and low res • Users get the right XAP for the best experience on their phone OS 7.1 OS 8.0 XAP-2 (low res screen) XAP-1 XAP-3 (high res screen) In App Products

28. 7.5 & 8.0 Improved reporting Point-in-time and low latency reporting All reviews in a single place Translated to your language! Analyze Free, Trial, Beta and Paid downloads

29. More Opportunity • More Markets • More Monetization • More Efficient Dev Center • More Discoverability • *Fast Start*

30. Solving Discoverability • What Developers Told Us • Help users find my app in more and smarter lists • I’ve invested in Live Tiles and Trial but its too hard to get noticed for that • My app doesn’t show up in Search even when it should • How can users who might like my app, but haven’t heard of it, find it? • If my app is more niche, how does it stand out in a catalog of 100,000+ • What Users Told Us • Make it easy for me to find popular and highly rated free apps & games • Help me find apps with a live tile or which have a free trial available • Improve app search so I can more easily find what I’m looking for • Show me other apps I might like based on what I (and my friends) like • Help me find really good groups of apps based on genre, my location or season Users and Developers both want the same things for Discoverability Windows Phone 8 Store delivers.

31. 8.0 The new store experience

32. 8.0 The new store experience demo

33. 8.0 New ways of finding apps Hero App Quick Links Smart Lists 8 in Spotlight Collections For You

34. 8.0 Quick Links help find ‘apps on the move’ Simple way to browser, sort and find apps by frequently used views • Top Free • New + Trending • Top Paid • Best Rated • Collections • Apps for You

35. 8.0 Collections: Find apps grouped by affinity Expertly selected high quality apps Local Seasonal Interest

36. 8.0 Spotlight drives 10x downloads Expertly selected per market: match consumers with great apps

37. 8.0 For You: Bing™ personalized recommendations Helps you find apps you might like* Constantly learns based on your downloads and app usage Uses a lot of very sophisticated inputs: usage, crashes, trends and patterns by users that download similar apps Really smart: understands apps you own, data from Facebook friends, best local options * Users can opt in or opt out of providing this information to Microsoft

38. 7.5 & 8.0 Search and Smart Lists presents Bing™ powered results Factors more elements: • Downloads, and download ‘trend’ • App usage • Uninstalls • Ratings and review count • Crashes • Pin to start Elements that lower ranking: Crashes, Uninstalls, Negative Ratings

39. 8.0 More useful Apps details See more info about each app • If apps have Trial • If apps have live tiles Report problems with the app • Inappropriate content • Trademark violations • Incorrect parental rating Last update

40. Smarter discovery also available on the web http://www.windowsphone.com/store Additional app discovery opportunities • Collections (new) • Smart lists (new) • Buy and download directly to the phone • Reinstall apps

41. More Opportunity • More Markets • More Monetization • More Efficient Dev Center • More Discoverability • *Fast Start*

42. Windows Phone Store download badges • Official Store branding • Help you market your Windows Phone app, and help your customers find it! • Download and use them today! http://bit.ly/Tg7NbY

43. 7.8 and 8.0 Add Live Tiles and double width Tiles Make your app shine Keep users informed For 8 and soon for 7.8 CNN Audible ESPN PayPal UrbanSpoon Weather Channel Groupon

44. Support Low Memory • 256 MB Windows Phone 8 Low memory = 512MB or more… Windows Phone 7 Low memory = 256MB 512 MB 512 MB 1 GB or more New: Upped OTA Download Limit to 50MB

45. Leverage new Developer Partner Offers UI controls Native gaming on board with Windows Phone 8 Tools & libraries Web API http://aka.ms/wpdevecosystem

46. 8 for Windows Phone 8 Cross submit existing app: 191 markets Download the Windows Phone 8 SDK Optimize your app price per market Add Live & Double-Width Tiles Ensure app runs in low memory Add in-app purchase Use the Badge Program Add high resolution graphics

47. Individual Developer Registration Fee • $8 for 8 days Ends November 7 The difference between $99 and $8 will be refunded back to you within 30-60 days

48. Q&A 191 Markets Online Tax Forms MO Billing Bing Search Quick Links Picks For You Ads Live Tiles In-App Purchase Next Gen Platform 120K Wallet Collections Enhanced Dev Center Per Market Pricing Web WP8 SDK High Resolution Spotlight