The almighty cable and Internet bundle is a large source of revenue for many telecoms. Some people, however, feel that the bundle doesn't deliver on the value that it promises. That may change next year as numerous telecoms will begin offering in-game cash for Zynga games.
Zynga has signed a deal with Synacor that will bring the company's games directly to subscribers' homepages. Numerous telecoms like Verizon and Charter offer Synacor's services for cloud-based on-demand films and TV shows, but this may be the first time that games have been offered as part of a cable and Internet package.
"TV Everywhere is raising awareness of the value of authentication. It facilitates an evolving definition of the breadth of offerings MVPDs are capable of delivering to their consumers. Games are an important extension, and Zynga's leadership in social games makes it an ideal partner. Synacor is delighted to be working with Zynga, and this partnership will build upon an ecosystem that continues to expand the definition of the bundle for our customers," said Ron Frankel, Synacor CEO. "Partnerships such as these, where pay-TV subscribers get even more benefits and entertainment from their subscriptions, are redefining the bundle, and we are confident the foremost programmers and content providers will see value in this subscriber-friendly approach."
The most interesting part about the whole deal is that telecoms can now offer monthly allowances of in-game cash for Zynga games. Synacor notes that players will be able to redeem the in-game cash via Zynga.com, Facebook and Google+. The in-game cash can be used in games like Zynga Poker, Words with Friends, Ruby Blast and others.
"Zynga is always looking for innovative opportunities to deliver the best value in entertainment for its new and existing players," said Barry Cottle, Chief Revenue Officer for Zynga. "Our partnership with Synacor will enable us to offer additional value to premium pay-TV subscribers with in-game currency while providing easy navigation to their favorite Zynga games directly from their PC home screens."
The deal with Synacor is the first since the social games maker amended its contract with Facebook last week. The deal now lets Zynga take its games to other platforms, and this is only the beginning. Zynga has a lot of ground to cover to return to profitability, but it's already looking like a good first step. Zynga's share price jumped 3.5 percent on the news to $2.31.