A Look at Tyche’s private estate survey March 2016

Tyche Shepherd, who tracks land statistics in Second Life, issued a full Private Estate survey at the end of March 2016. It’s the first such survey she has published since the end of November 2013, representing a 28-month gap between reports. Given this, it makes for some interesting reading, some of which is highlighted below.

Overall, the distribution of regions between Full, Homestead and OpenSim in March 2016 remains very similar to that of November 2013 (in fact these figures tend to  remain fairly constant as representative indicators of region distribution).

Year
Full
Homestead
OpenSpace
March 2016
53.9% (+/-1.28%) 45.6% (+/-1.28%) 0.5% (+/-0.18%)
November  2015
53.8% (+/-1.30%) 45.5% (+/-1.29%) 0.7% ( +/-0.21%)
Surveys based on 4,208 accessible regions in March 2016; 4,402 accessible regions in Nov 2013

However, Tyche indicates that, overall, the amount of private estate land has consolidated more within the top 20 estates over the 28-month period from November 2013 (39.5% of private estate land) through March 2016 (49.1%; +/- 1.3%). Using supplied list prices, Tyche estimates that the top 20 estates account for some 40.6% of total private estate tier, compared to 30.5% in November 2013.

In terms of regions held, of these top 20 estates, seven are actually under the Anshe Chung Studio (ACS) brand, accounting for 19.1% of private estate holdings, compared to 13.8 in November 2013 for ACS; again a significant increase.

Grandfathered Homesteads stand at around the 85.32% mark for 2016,  compared to 82.4% in November 2013. The year-end reports do not indicate the percentage of Full private regions that are Grandfathered, but in a comment on SLU following the Lab’s announcement on Grandfathering and buy downs, Tyche indicates that the current number of Grandfathered Full private regions stands at just over 11%.

In terms of private region decline on the grid, Tyche offers the following:

November 2013 March 2016
28-Month Region Loss
%age Decline
19424 17549 1875 10.7%

Comparing annual region losses for the period January 2012 through December 2015 shows that overall, while the decline still continues, it has slowed considerably as a percentage of the total grid since hitting a peak in 2012. However, 2015 did see a slight increase in the rate of decline, but just under 1%.

2012 2013
2014
2015
Loss %age
Loss
%age
Loss
%age
Loss
%age
2863 12% 1719 8.2% 673 3.5% 825 4.4%

In terms of revenue for the Lab, in  November 2013 the Lab was generating approximately US$3,857,000 (+/- US$52,000) per month. By March 2016, this figure was approximately US $3,385,000 ( +/- US $43,000), representing a 12% decline in monthly private region revenues across the 28 months.

While this is a drop, and allowing for the fact that figures can only estimated, it would suggest that the Lab is still generating around $49 million revenue from tier (private + Mainland) at this point in time, representing approximately 80% of their total revenue. Taking into the assorted costs involved in running, maintaining and enhancing Second Life and the company as a whole, this would suggest the Lab is still reasonably profitable.

Which is not to say there are not other clouds on the horizon. The recent buy down offer on regions could pose a problem to small or medium-sized estates where full regions are concerned (given that the majority of Homesteads are already Grandfathered), as they may find meeting the up-front US$600 difficult to meet. If so, this could make it even harder for them to remain competitive on pricing with the larger estates, and potentially lead to further consolidation of land among the latter at the expense of smaller operations forced to turn in their cards.

Tyche’s ongoing reports make for interesting reading – particularly these month-end reports, which have been sadly missed (and my thanks to Ciaran Laval for pointing-out that we now have a new one to look at). As such, I hope the March update might signal the return of these reports are returning to something of a more regular appearance, assuming Tyche has the time to pull them together!

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One thought on “A Look at Tyche’s private estate survey March 2016

  1. Boudicca

    Makes for interesting reading ……and heartening in many ways too. That the Lab remains a profitable business is in everyone’s interest – stockholders and residents alike.

    Like

    Reply

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