Streamplay Secures 15% Revenue Share in Sri Lanka via Dialog Partnership

Strategic Expansion into Sri Lanka’s Mobile Gaming Market

Streamplay Studio Limited (ASX: SP8) has announced a significant step in its global expansion strategy by entering the Sri Lankan market through an exclusive cloud gaming distribution agreement with Mobibox, targeting Dialog Axiata PLC’s extensive mobile subscriber base. Dialog, commanding approximately 59% market share with over 19.1 million subscribers, provides Streamplay with a robust platform to introduce its Playstream cloud gaming service to a digitally engaged audience.

This move follows Streamplay’s successful debut in the United Arab Emirates earlier this year, where it generated over AED 2 million in cumulative revenue within months. The Sri Lankan agreement leverages Mobibox’s direct relationship with Dialog to facilitate marketing and distribution, enabling Streamplay to scale its cloud gaming footprint without incurring additional marketing or operational costs.

Revenue Model and Market Potential

The agreement stipulates that Streamplay will receive 15% of net revenues after a 30% share goes to the telco, with payments invoiced monthly in US dollars. The contract spans three years with provisions for renewal and termination on three months’ notice. This revenue-sharing model aligns incentives between Streamplay, Mobibox, and Dialog, fostering a collaborative approach to growing the service’s user base.

Sri Lanka’s mobile market is characterized by high smartphone penetration, approximately 67% of end users, and a youthful demographic, with 24% of the population aged 18 to 34. The country boasts 32.5 million mobile subscriptions, exceeding its population, and 21 million active mobile broadband connections, making it an ideal environment for cloud gaming services that require reliable, high-speed connectivity.

Technology and User Experience

Streamplay’s Playstream service delivers high-fidelity, low-latency gaming experiences directly to users’ devices without the need for dedicated hardware. The platform supports popular game engines like Unity and Unreal, and offers intuitive controls compatible with Bluetooth peripherals such as Xbox and PlayStation controllers. Initially focused on casual gaming for entertainment, Playstream plans to incorporate personalized leaderboards and skill-based competitions, enhancing user engagement.

Integration with Dialog’s billing APIs is underway, with a launch expected within the current quarter. This seamless integration is designed to facilitate easy access and billing for users, further lowering barriers to adoption.

Outlook and Strategic Implications

Chairman Bert Mondello emphasized that this expansion requires no additional capital expenditure, reflecting Streamplay’s disciplined approach to shareholder value maximization. The partnership with a dominant mobile operator in a growing market underscores Streamplay’s ambition to establish itself as a leading cloud gaming provider in emerging regions.

While the immediate revenue impact remains uncertain and dependent on user uptake, the deal positions Streamplay to capitalize on Sri Lanka’s expanding mobile broadband infrastructure and youthful, tech-savvy population. The company’s next steps will likely focus on monitoring user engagement metrics and exploring further partnerships in similar markets.