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DIRECTI CASESTUDY CONTEST
Indian Institute of Management, Lucknow
Cine Vue - A window to tinseltown
Team: ConArtists
Sairam Kandaswami [email protected]
Executive Summary
The Product1
The Market2
Marketing Strategy3
Revenue Streams4
Cine Vue – A Comprehensive Movie Portal - Comprehensive, veritable data on Indian movies - DVD purchase option comparing multiple online vendors - VOD service for parallel cinema on site, access to BigFlix for other movies - Film Making portal bringing together industry stalwarts and aspirants
Target audience segmented into two brackets - General Audience: 18-34 years old, educated - Focused Groups: Production houses, independent producers etc.
Key Marketing Initiatives - Use of social media to aid in WOM advertising - Use of Google Ads and Facebook Ads for online advertising - Affiliate marketing using collaboration with Bigflix and Bookmyshow - Direct marketing in the form of college shows and events
Main Revenue Streams - Selling Targeted Advertising space on the website - Revenue sharing agreement with affiliate partners like BigFlix - Subscription revenue from aspiring writers and producers - Sale of video-on-demand (VOD) service relating to parallel cinema
1 Agenda
State of the Film Industry
Internet in India
Gap Analysis – Movie Portals
Our Product
Marketing Strategy
1
2
3
4
5
Monetization Plan6
2 State of the Film Industry
Industry is expected to grow at a CAGR of 10.1%
Industry Size in INR Billion
Distribution of revenue across sources
Domestic Theatrical
74%
Overseas Theatrical
8%
Home Video2%
C&S Rights11%
Ancillary Revenue Streams
5%
2011 2012E 2013P 2014P 2015P 2016P
2
1.7
1.41.2
1 0.9
Home Video to decrease at an annual rate of 15%
Source: Digital Dawn – FICCI & KPMG Report on Indian M&E Industry 2012
2010 2011 2012P 2013P 2014P 2015P 2016P
83.392.9
100109.7
121.1134.5
150.3
3 Internet in India
Internet Penetration expected to reach ~30% by 2015 Broadband connections expected to reach 39 million by 2015
Entertainment sector added 15mn unique online visitors Internet Access from other devices
2010 2011 2012E 2013E 2014E 2015E0
50
100
150
200
250
300
350
400
0%
5%
10%
15%
20%
25%
30%
35%
60 80 120 190 273 376
5.00%6.60%
9.80%
15.30%
21.70%
29.50%
Unique users (millions) Penetration (%)
Source: India Goes Digital – Report by Avendus, Rise of India’s Digital Consumer - Comscore
Jul 11 Oct 11 Jan 12 Apr 12 Jul 12
40.6 41.143.6
47.8
55.8
% Mobile traffic23
No. of units-
% Total traffic92
% Mobile traffic26
No. of units33mn
% Total traffic2
% Mobile traffic0.17
No. of units0.5mn
% Total traffic1
PCs/Laptop
Smartphone
Tablets
4 GlamSham (India) and IMDb (USA) – A Comparison
1
2
3
4
Too many ads tend to put the user off
Navigation is not in focus
Highlight is on latest news not content
Online booking feature not clearly visible
5 No info on regional films or parallel films
1
2
3
4
No ads on the home page
Navigation is kept in focus
Limited news on homepage
Online booking feature clearly visible
5 Info on parallel films available
2
3
1
4
2
3
Movie Portal Design
Low Ad visibility
Easy Navigatio
n
Accurate Content
Source: Websites
5 Gap Analysis – Movie Portals
National International
GlamSham BoxOfficeIndia IMDb Rotten Tomatoes Metacritic
Box Office Updates
Available Available Available Available Available
Comprehensive Movie Data
Not Available Not Available Available Not Available Available
Movie Reviews In-house Review Not Available Available Available Available
Movie NewsNot indexed by
movieNot indexed by
movieIndexed Available Not Available
DVD/ VOD Availability
Not Available Not Available Not Available Available Not Available
Online Movie Bookings
Via partners Not Available Via partners Available Not Available
Analytics Not AvailableBasic Analytics
AvailableAdvanced Not Available Not Available
Movie Making Not Available Not Available Not Available Not Available Not Available
Other Device Support
Not Available Not Available Available Available Not Available
Our Focus
Source: Websites
6 Analysis of International Movie Portals
RottenTomatoes IMDb Metacritic
Percentage of traffic from search engines
Average time on site
Site visits preceding this
General Audience
Positives
Negatives
24.2%
3.5 minutes
Google, IMDb, Facebook
18-34 yr old, Educated
Content
Slow speed
27.9%
4.2 minutes
Google, Facebook
18-34 yr old, Educated
Content, Speed, Deals
-
18%
2.75 minutes
Google, Facebook
18-34 yr old, Educated
-
-
Source: Alexa Search Analytics
Target Audience
Importance of SEO
7 Our Product - Features
Features
Box Office Updates
Movie Reviews
VOD Availability
Online Movie
Bookings
Movie Making
Collaborate with BigFlix to show
movie availability on the website. Also
provide VOD for parallel cinema
from the website
Collaborate with BookmyShow to show the show timings on the
website. Charge on a per transaction
basis
Create a paid service wherein
independent filmmakers can post
their ideas to be viewed by studios
Aggregate movie reviews from
multiple reliable sources. Create a
custom score based on user and critic
reviews
8 Technical Aspects of Product Design
Web-based interface using PHP/ Java
Cloud hosting Video-on-demand
(e.g. Amazon Cloud)
Database containing movie info (MySQL)
Film Review AggregatorWeb Crawler
CNN-IBN Movies Rediff Movies Yahoo Movies TOI
Price Comparison Web Service
Dai
ly B
atch
On
Dem
and
ServiceO
n d
eman
d s
ervi
ce
9 Mockup Screen #1 – Home Page
UserID Password
CineVue
Movies hangoutFilm MakingHome Video
Search for a movie
Week’s Top Earners
Son of
Sardar
Skyfall
Chakravyu
h
Ajab Gajab
12.6 crores
8 crores
6.5 crores
5.7 crores
Newscast
Son of Sardar opens to a full house in all major
centers
“Yash Chopra’s last is his tribute to the film
industry” - Adi
Aamir Khan’s Talaash set to release next week
Rani Mukherjee out of Prakash Jha’s next venture
Associate Partners
Search Functionality
Box Office News
Latest News
Login
10 Mockup Screen #2 - Movies
CineVue
Movies hangoutFilm MakingHome Video
Search for a movie
Related Videos
Director: Bill Condon
Writers: Melissa
Rosenberg, Stephanie
Meyer
Plot Summary: After the
birth of Renesmee,
Cullens. (more)
Sponsored Links
Twilight: Breaking Dawn Part II – 115 min
Twilight series at 45% discountwww.bookstore.com\Twilight
Watch Movies for freewww.freemovies.com
Breaking Dawn Part 2 Trailer 1Trailer 2
Premiere NightInterview with Kristen Stewart (more)
PVR – Lucknow1.15 3.30 4.15 6.30 9.00 10.55 (more)
Cinema Show timings
Official SiteRelease DateBudget
Other Details
Reviews
8/10
Online Advertisements sold to bidders
Collaboration with BookmyShow
Rating computed based on user
(30%) and expert ratings (70%)
Breaking Dawn continues to……The last part of the series does..
Amit N (TOI)
Nisha S (CNN)
Aggregated Expert Reviews
MOVIES
Welcome Rajiv
Your Account
11 Mockup Screen #3 – Home Video
CineVue
Movies hangoutFilm MakingHome Video
Sponsored Links
Video on Demand servicewww.VOdforfree.com
Watch Movies for freewww.freemovies.com
Late
st o
n
VO
D
HOME VIDEO
Late
st o
n D
VD
Compare Compare Compare Compare
Associate Partners
Store Price Shipping
299
299
275
299
275
FREE
FREE
FREE
FREE
FREE
Movies, E-commerce websites shown are for indicative purposes only
Vie
w N
ow
Rs. 50 Rs. 50 Rs. 50 Rs. 50
VOD service operated by Cine Vue for parallel cinema
Search for a movieWelcome Rajiv
Your Account
12 Mockup Screen #4 – Film Making
CineVue
Movies hangoutFilm MakingHome Video FILM MAKING
Pen down your ideas here
For the Writer
Premium service based on yearly subscription
Platform to share ideas with other members and film industry
Option to add suitable cast for the story
For the Studio
Platform for identifying talent and exciting plots
Logs in and Requests Contact. Can then view the post and discuss if needed
Feature includes discussion rooms where industry and aspirants can interact
Discuss
Request Contact
Submit
Search for a movieWelcome Rajiv
Your Account
13 Defining the Target Audience
Target Audience Segmentation General Audience
• 18 – 34 years old• Educated• Computer Literate
Focused Groups
• Serious cinema lovers• Studios/Producers• Aspiring scriptwriters and
movie buffs
General Audience
Total Population: 1.24 billionAged 15-64: ~800 millionAged 18-34: ~400 million*Internet Penetration: 20%*Target Market Size: ~80 million
Focused Groups
Large production houses: ~20
* Assuming 50% of the population over 15 years lies in the target bracket * Assuming internet penetration is higher for the target sector
Based on the Gartner Hype Cycle
Adoption time for technologies like online video is 2-5 years
Experience from Rottentomatoes.com reveals that the time to attain the critical mass is around 6 years
Considering a better informed audience today, the time to adoption should be around 5 years
Adoption Rate
~4-5 Years
Source: http://www.gartner.com/technology/research/methodologies/hype-cycle.jsp Source: India Census 2011
14 Marketing Strategy – Action Plan
Phase 1 Phase 2 Phase 3 Phase 4
Objective
Plan
General Awareness
Engaging the General
Audience
Attracting the serious movie
goers
Engaging the production
houses
Social media
Direct marketing
Online
Affiliate marketing
Events
SEM
Social media
TV
Affiliate marketing
Direct marketing
Events
TV
Direct marketing
Incentives Reward points Reward points & gift vouchers
Snippets of discussions held
on the portal
Cost-benefit analysis of
creating a plot
15 Marketing Initiatives – Phase 1
Objective To create general awareness about the product and its features
Direct Marketing Leverage Social Media to add/discard features in the product
College road shows and events outside movie theatres
Organize fun events around movies in colleges and designate
college ambassadors from 10 colleges
Ambassadors will have the responsibility of contributing
information to the portal
Employ Facebook, Twitter as customer
engagement tools
Use the social media as a tool to build the customer base for
WOM advertising
Engage the customer group using quizzes and movie trivia
Online advertising
Use Google Adsense to determine which strategic sites to
place ads on
Advertise using Facebook Ads to increase the reach of the
product
Increase movie count while maintaining quality control
Facebook Ads Value Proposition
16 Marketing Initiatives – Phase 2
Objective Engaging the target audience and establishing the brand name in the movie portal business
Use targeted online ads using Google Adwords to attract the attention of the target sector. Use the cost per click basis.
Use SEO to rewrite code so that it is displayed within to the top 20 results in a search
All members registering in the first six months will be awarded 50 Vue points
All campus ambassadors will be allotted additional 100 Vue points
Redemption will be as follows: each Vue point is equal to Rs. 0.5
Other members can earn points through movie review contribution subject to quality checks i.e. blind review policy with each review ratified by two other members
Cine Vue, BigFlix and Bookmyshow all have complementary businesses with strong correlation
Integrated marketing approach to be employed with cross-marketing across platforms
Place ads on each others’ sites at distinct locations
1% of revenue of each sale conversion will be awarded to the corresponding party
Search Engine Marketing Collaborative Promotions
Affiliate Marketing The Rewards System – Vue Points
Collaborate with the affiliate partners to design integrated promotional material
For e.g. Cine Vue can be portrayed as a one stop solution to the movie purchase decision
17 Marketing Initiatives – Phase 3 & 4
Objective Attract the attention of the serious movie going audience and production houses
TV Advertisements
Challenge is in reaching out to a less accessible audience
Create attention grabbing television ads that will target the
serious cinema lovers.
Focus should be on the informational value and the credibility
of the business. Advertise mainly on the movie channels
Advertise in between movies at cinema halls
This is also an expensive mode of advertising but warranted
at this stage
Advertise in the leading theatre chains in the main cities and
towns in the country
Can later be extended to include other cities
Events
Sponsor some major events related to cinema such as an
exhibition
Collaborate with leading theatres like Prithvi Theatre and the
NCPA to organize discussions between eminent personalities
and regular contributors on the site
18 Monetization Plan – Revenue Stream 1
Stream 1 Advertising Revenue from selling advertising space on the website
1. Targeted Ads directed at our customers
We will use the cost per click (CPC) method while charging the advertisers on our website
Customers will be delivered contextual ads based on their search on the website
Advertisers will be charged Rs. 350 per 1000 clicks
Target advertiser base in this case will be sites selling movie related items such as merchandise, DVDs etc.
We will also sell a portion of the advertising space on a highest bid format to leading e-commerce sites
Sponsored Links
Video on Demand servicewww.VOdforfree.com
Watch Movies for freewww.freemovies.com
Search driven
advertisements
Sponsored Ads
19 Monetization Plan – Revenue Stream 2 to 4
2. Revenue Sharing with the affiliate partners
BookmyShow.com and BigFlix will be used as a part of the affiliate network for marketing
The revenue sharing between the parties will be based on conversion of sales
BigFlix will be charged 1% of every transaction that is routed through Cine Vue
BookmyShow.com will be also be charged 1% of every transaction that is routed from our site
Both parties will be paid a nominal amount upfront for showing Cine Vue adverts on their sites and diverting traffic to our site
3. Differential pricing for aspirants and studios
Aspiring artists will be charged an annual subscription charge of Rs. 3000 for posting their ideas on the site
The slightly steep price is to keep away non-serious customers
Production houses will be charged an annual subscription fee of Rs. 10000
In addition to this, the aspirants will also be charged a fee of Rs. 500 for every contact with a production house
Production houses will be charged a fee of Rs. 2000 for every contact with an aspirant
4. Video-on-Demand service
We will provide a VOD service focusing on parallel cinema alone to the customers
The service will be available on a per movie basis or on an annual subscription basis
The per movie charge will be Rs. 50 and the annual subscription fee will be Rs. 1000 for watching upto 30 movies a year
Partnerships with affiliates Revenue from aspirants and studios Sales from the VOD service
20 Financials
Amount Frequency Assumptions
One Time/ Annual Costs
Web Development Costs
- Domain Name Regrt 535 One time
- Web Hosting 1000 Yearly
- Website Design 10000 One time
- Website Creation 2500 Per Page
- Database Development 40000 One time
Cloud Server Subscription 30000 Per Year Based on Amazon EC2 pricing
On-going Costs
Database Maintenance 100000 Yearly
Website Maintenance 60000 Yearly
Salaries 300000 Monthly
Based on estimate of 6 web developers and 3 Database administrators
Rent 70000 MonthlyRent estimates for Navi Mumbai (600 sq ft)
TV Advertising
- Popular Channels 150000 30 secs
- News Channels 5000 30 secs
Online Advertising
- Google Ads 34.83 CPC www.lighthouseinsights.in (Test Run)
- News Channels 8.8 CPC www.lighthouseinsights.in (Test Run)
Search Engine Marketing
- Paid Ads - - Same as above
- SEO 7500 MonthlyInitially outsourced. Can be done in-house later
Cost Analysis Revenue Analysis
AmountFrequen
cyAssumptions
Annual Revenues
Film Making Subscription
- Individuals 1500000 Yearly Assuming 500 subscribers by year 2
- Studios 30000 Yearly Assuming 3 studios by year 2
VOD Subscription
- Individuals 500000 Yearly Assuming 500 subscribers by year 2
On-going Revenues
Target Market Size 80,000,000
User traffic 80000Assuming 0.01% penetration (year 2)
Clicks per user 15 Assumption
Total Clicks 1200000 Yearly
Target Advrt Revenue 420000 Yearly
Site Referrals Revenue 800000 Yearly Assuming 4000 users for partners
No of VoD viewings 5000Assuming 1000 viewers of parallel cinema and 5 movies per user
VOD Revenue 250000
21 Organizational Structure
Cine Vue
CEO CTO
Business Development Engineering
CMO
Marketing Managers
Relationship Managers
Responsible for overall website management
and enhancements
Responsible for maintaining relations with affiliate partners
and roping in new ones
Responsible for finance, operations and other important decision
making
22 Roadmap for the future
Phase 1
Develop the portal with all features
Month 1 to Month 4
Phase 2
Implement the Phase 1 marketing plan
Month 4 to Month 6
Phase 3
Implement the Phase 2,3,4 marketing plan
Month 6 to Month 24
Phase 4
Develop the portal for other devices like tablets etc.
Month 24 onwards
Thank You