Zynga Inc(NASDAQ:ZNGA) has inked an agreement with Synacor that may be able to gain its access to millions of cable and telecom subscribers. This is a step taken by Zynga with a view of making it a place for users to discover games.
Synacor is an under-the-hood technology company that offers authentication services, TV solutions based on internet and presently Zynga games. It also offers 45 cable, satellite and telecom companies.
Synacor’s customers will be given the rights to offer their subscribers access to games right from their homepages. In addition, such services providers will also be able to include in-game currency of Zynga as part of their subscription offerings. To put it in other words, the providers can now bundle together internet, television, telephone, and FarmVille cash.
Customers of Synacor entail a range of service providers like CenturyLink, Charter, US Cable and Verizon. It claims to reach 24 million households in the US.
Zynga has entered into other distribution agreements in the past, like a rewards program with American Express that allows people to make virtual currency when they use up money in the real world. This is the first mash up of television and games for the social gaming company. It may take some time for this combo to become a significant business, if at all it does. However, it shows the commitment of the company in finding new subscribers, wherever they may be located.
A lot of details are still being made public, like how customers will navigate from the home screen of an operator to a game. Customer may be taken to Facebook, Google+ or Zynga. Evidently, if the customers happen to be existing players, they will probably want to play on the platform of their preference. Customers will get a discount code so that they can redeem the currency while playing the game.
Shares of SYNC were recently down 6% at $5.8, well off session high of $6.51. Shares of ZNGA are up 1.26% at $2.25 after hitting session high of $2.33.