Dataotuan special-report-on-movie-deals

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How movies influence revenues, rankings & maybe even national ticket sales

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Dataotuan special-report-on-movie-deals

  1. 1. Movie Daily Deals – The Revenue DifferentiatorHow movies influence revenues, rankings & maybe even national ticket sales Dataotuan.com Published: Mar. 6, 2012
  2. 2. Table of Contents The Intro Movie Deal Vendors Movie Deal Structure The Trend January 2012 Stats Geographics Sites Ranking With or Without The Making of a Movie Deal Summary About Dataotuan Contact © Dataotuan.com - blog.dataotuan.com 2
  3. 3. Movie Deals – The IntroMovies are a recurring event in the Chinese daily deal universe.From the moment Dataotuan started tracking deals they have always been one ofthe 3 biggest subcategories in the top deals overview.In January 2012 alone, movie deals accounted for 13.4% of the total dealrevenue.The new year seemed a good moment to dig deeper and find the story to whatmakes movie deals so popular and on the face of it so lucrative to Deal websites.The report will start with providing insights in the cooperation models as well ashow deals are structured. Next on the list will be looking deeper into the data weretrieved and analyzed, followed by a real life example of a movie deal byMeituan as well as “ The Making of a 55tuan Movie Deal”Lastly we will put the movie deal in an Asian perspective. © Dataotuan.com - blog.dataotuan.com 3
  4. 4. Movie Deals – The Vendors There are two kind of vendors for Movie deals : Deal sites cooperate with a specific cinema. Consumers can use the coupons in the Cinema. (such as Wanda Cinemas, Stellar International Cineplex, etc.); Deal sites cooperate with a ticket website. Consumers can book online to watch a movie in different cinemas. (such as himovie.net, spider.com.cn, etc.) © Dataotuan.com - blog.dataotuan.com 4
  5. 5. Movie Deals – The Structure There are several ways that Movie deals are structured Deal sites pre-buy tickets from a cinema which they resell as a deal. Deal sites guarantee a minimum number of sales, and sell the tickets at the agreed price. Deal sites guarantee a minimum number of sales, and sell the tickets at the price above the agreed price to keep some margin. Deal sites sell the movie tickets as they sell the other service deals, and pay according to the nr. sold to the cinema in the beginning, middle and end of the valid time that users can redeem the deal.Each deal is structured differently as it will depend on who holds the leverage.Depending on the leverage, a deal site may keep some margin, charge someservice fee or what happens often, work for free and very likely spend money to getand promote a movie deal as it’s a good way to acquire new users and reconnectwith existing users.A sign that Movie deals may often be loss leaders is that the deal websites don’tpay kickbacks for referrals on these deals. © Dataotuan.com - blog.dataotuan.com 5
  6. 6. Movie Deals – The Trends 1 The number of movie deals has been around 2% of the total deals launched. The percentages of the total deal revenue and nr. sold has always been high with peaks during holiday seasons. Since June 2011 the revenue % of movie deals among the total has been hovering between 4.7% to 13.4%. % of Movie Deals among Total 15.8% 12.0% 11.0% 9.3% 13.4% 8.3% 8.1% 6.0% 8.2% 5.5% 6.7% 5.2% 5.1% 4.7% 2.2% 2.1% 2.3% 2.2% 2.0% 1.9% 2.2% Jun.2011 Aug.2011 Sep.2011 Oct.2011 Nov.2011 Dec.2011 Jan.2012 % Revenue % Nr.Sold % Nr.Deals © Dataotuan.com - blog.dataotuan.com 6
  7. 7. Movie Deals – The Trends 2 The absolute number of average Nr. Sold and Revenue of movie deals changed depending on the seasons with the Summer Holiday and New Year’s Holiday standing out. Nr. Sold & Revenue of Movie Deals 80,166 71,733 51,174 38,851 30,664 29,625 23,418 2,981 2,783 1,937 1,663 1,408 1,052 1,164 Jun.2011 Aug.2011 Sep.2011 Oct.2011 Nov.2011 Dec.2011 Jan.2012 Avg.Nr.Sold Avg. Revenue (Rmb) © Dataotuan.com - blog.dataotuan.com 7
  8. 8. Movie Deals – January 2012 Stats In January 2012, Movie deals accounted for 13.4% of the total revenue. The average unit price of a Movie deal was only a low 33.3 Rmb in January, considering the average deal price was 142.1 Rmb. The average Nr. Sold and Revenue per Movie deal is high. They are 7-8 x more than the respective Nr. Sold and Revenue Averages.Comparison of Movie Deals and Total Revenue Share of Movie Deals 71,773 Others, Shopping, 3.9% 18.4% Dining, 33.1% 7x 2,783 Life, 12.6% 8x 10,685 Leisure- Leisure- 350 Others, Movie, 18.6% 13.4% Average Nr. Sold/Deal Average Revenue(RMB) Movie Total © Dataotuan.com - blog.dataotuan.com 8
  9. 9. Movie Deals – Regions ¥ 108.8 9399 ¥ 130.4 4,049 ¥ 147.3 15,314 ¥ 147 35,634 ¥ 174.4 ¥ 116.4 6,869 10,372 Leisure-Movie Dining-Hotpot/BBQ Leisure-Travel ¥ 179 13,993 Life-Photograph• Average Price of Local Deals © Dataotuan.com - blog.dataotuan.com 9• Nr. of Local Deals
  10. 10. Movie Deals – City Stats Beijing is the best place to find a movie deal. More deals are launched there than in any other Tier 1 cities, though on the whole the % of Movie deals revenue among total revenue in BJ is low. Among the tier 2 cities, movie deals in Fuzhou take the highest percentage among the total revenue, and Hangzhou the lowest. Movie Deals in Tier 1 & Tier 2 Cities Nr. Sold / Average % among % among Nr. Deals Nr. Sold Deal Revenue Total Deals Total Revenue Beijing 334 421,451 1,262 35,052.1 3.9% 7.5% Shanghai 207 546,760 2,641 90,581.9 3.6% 12.2%Guangzhou 92 331,740 3,606 108,112.3 2.0% 13.8%Shenzhen 75 315,495 4,207 119,828.1 2.0% 14.8% Wuhan 122 402,297 3,323 82,848.8 4.0% 19.4% Fuzhou 40 234,975 5,876 149,668.4 1.7% 20.7%Hangzhou 29 28,774 993 32,815.8 1.2% 2.8% Chengdu 135 203,932 1,511 34,253.4 4.0% 9.6% Total 2,698 7,150,519 2,783 71,733.2 2.2% 13.4% © Dataotuan.com - blog.dataotuan.com 10
  11. 11. Movie Deals – Sites Ranking With or Without Movie deals play a big role in total revenues, just in January Meituan’s Movie revenue was at 19.3%, followed by Nuomi (17.9% ) and Didatuan (14.5%). Ranking the Deal Sites on Revenue without movie deals has an effect as well. Revenue Ranking of Deal Sites inc. & exc. Movie Deals Total Revenue Ranking exclude Movie % among Deal Sites Name Ranking movie revenue Total Revenue 1 1 Meituan 19.3% 2 2 55tuan 10.1% 3 3 Lashou 3.9% 4 5 Dianping 11.2% 5 4 58tuan 3.5% 6 6 Nuomi 17.9% 7 7 Ftuan 3.8% 8 8 Juhuasuan 1.0% 9 9 Manzuo 13.0% 10 12 Didatuan 14.5% © Dataotuan.com - blog.dataotuan.com 11
  12. 12. Movie Deals – Meituan’ Record & Contribution In January, Meituan launched a super movie deal. Revenue of this single deal was over 13 million rmb. More than 530,000 people bought this deal. Meituan has always been active on movie deals. According to the PR director of Meituan, Meituan has contributed 1% to the total box office in China in 2011. © Dataotuan.com - blog.dataotuan.com 12
  13. 13. Movie Deals – 55tuan vs Meituan In mid-January, 55tuan launched a movie deal, covering 35 cities, staying online for more than one month. It seems that 55tuan has made a lot of effort to set a revenue record for a movie deal and beat Meituan. © Dataotuan.com - blog.dataotuan.com 13
  14. 14. The Making of a Movie Deal1. A Time Machine2. Some Magic Math3. And MoneyNo sex though....... © Dataotuan.com - blog.dataotuan.com 14
  15. 15. The Making of a Movie Deal - ExtendStep 1: Extend the Deal time 55tuan extended the online time of this deal several times It has to be noted that this is standard practice and most deal websites apply this method to get more buyers Screenshot on 10/02/2012 Screenshot by 17/02/2012 Screenshot by 16/02/2012 © Dataotuan.com - blog.dataotuan.com 15
  16. 16. The Making of a Movie Deal - MathStep 2: Display Total Sales as Per City Sales. The impression is given that the deal is extremely popular in each city, even though the actual sales per city are much lower. National Nr. Sold showed on each City Page © Dataotuan.com - blog.dataotuan.com 16
  17. 17. The Making of a Movie Deal - PriceStep 3: Offering the deal cheaper than it is. In 7 cities, out of all the 35 cities, users have to pay an extra 5 or 10 Rmb in the cinema. Pay 5 or 10 Rmb more when you arrive the cinema. © Dataotuan.com - blog.dataotuan.com 17
  18. 18. The Result of the Movie Deal Competition Meituan 55tuanOnline period 2012. 01. 09 – 01. 18 2012. 01. 16 - 02. 24Online days 10 39Price (Rmb) 23 / 26 / 32 26Extra payment No Yes (in some cities)Discount (off) 62% / 67% / 73% 78%Cities covered 44 35Total nr. sold 537,944 401,395Total revenue 13,000,000 + 10,436,000 +(Rmb) © Dataotuan.com - blog.dataotuan.com 18
  19. 19. Movie Deals - Asia The movie % of Movie Deals among Total Revenue deals 13.4% phenomenon seems very special in China, 0.73% compared to the other 0.24% countries Dataotuan tracks. 0.28% 0.62% 0.01% 0.18% © Dataotuan.com - blog.dataotuan.com 19
  20. 20. Summary – Movie Deals Phenomenon1. Movie deals play a special role in the daily deal market in China. In January 2012, Movie deals accounted for 13.4% of the total revenue. The average Nr. Sold and Revenue per Movie deal are 7-8 times more than the total level. The movie deals phenomenon seems unique to China, compared to the other countries Dataotuan tracks.2. The movie deals are the key for the deal sites to win more market share. Movie ticket deals have a strong effect on revenue and even on the rankings of some deal sites. As the no.1 deal site, Meituan makes nearly 20% of its revenue from movies. According to the PR director of Meituan, Meituan has contributed 1% to the total box office in China in 2011.3. The making of a movie deal with Chinese characteristics. Extending online time repeatedly to increase the sales; Showing the total Nr. Sold on the different city pages; Making users pay extra in the cinema. © Dataotuan.com - blog.dataotuan.com 20
  21. 21. Dataotuan – Investor ToolIf you have a financial interest in the Group-buying Market, you want toknow: What is the market status in general Estimates of the Gross Revenue of the main Daily Deal websites. Revenue trends for the main Daily Deal websites Daily Deal Winners & Losers benchmark Deal data including merchant, price, sold count, category, sub category Pricing trends & Strategy Category trends Location trendsDataotuan can help you with the Investor Tool – Investor AnalyticsContact wenli@dataotuan.comWe offer: Customized reports, merchant details, raw/live data & more. © Dataotuan.com - blog.dataotuan.com 21
  22. 22. Dataotuan – Sales Tools 1 (Website Analytics)If you are running a deal site, you want to know: What is the market status in general and in a specific city Are you doing better than the average Should you adjust your pricing strategy according to the market trends Should you change the products combination Who are your competitors How competitive are they What is their sales strategy What is their pricing strategyDataotuan can help you with the Sales Tool – Deal Website AnalyticsDataotuan can help you with the Sales Tool – Deal Website AnalyticsContact wenli@dataotuan.comContact wenli@dataotuan.comWe offer:Customized reports, merchant details, raw data, live data and more.We offer: Customized reports, merchant details, raw/live data & more. © Dataotuan.com - blog.dataotuan.com 22
  23. 23. Dataotuan – Sales Tools 2 (Merchants Analytics)If you want to enter a new city you want to know; What kind of deals are popular in this city Who are the good merchants Where can you find them What is their daily deal history Who are your competitors Which merchants are they cooperating with What is their pricing strategy to generate a popular dealDataotuan can help you with the Sales Tool – Merchants AnalyticsContact wenli@dataotuan.comWe offer: Customized reports, merchant details, raw/live data & more. © Dataotuan.com - blog.dataotuan.com 23
  24. 24. About Dataotuan.comDataotuan, a unique daily deal aggregator and analytics platform in China,was started with 2 goals in mind.1. To recommend the best deals to our users based on where they are, what they like and when they want it as well as giving them tools to manage them2. To analyze the deal data in order to find out what constitutes the best daily deal © Dataotuan.com - blog.dataotuan.com 24
  25. 25. Dataotuan Tracks & CollectsDataotuan Tracks Dataotuan Collects125 of the main Daily Deal Sites Number of Deals Gross revenue Province, City, District, Category, Sub Cat.345 cities in Mainland China(*) Deals & Revenue per District Number of “real’ active Cities/Provinces5000 – 10000 new deals every day Deal Title Price (Original, Current, Abs. And % Discount) Number of Sold Deals Category/Sub Category Availability in Time City, District, Latitude/Longitude Weather & more *Dataotuan adds new Daily Deal websites on a regular basis based on quality and time of existence. © Dataotuan.com - blog.dataotuan.com 25
  26. 26. Dataotuan SellsDaily Deal websites  Sales Tool to help Source & Re-target deals as well as explore new cities  Daily Deal Predictor  Competition Analysis  City Market Entry  SWOT of your website or the competitionAnalysts and Investors  Estimates of the Gross Revenue of the main Daily Deal websites.  Revenue trends for the main Daily Deal websites  Detailed market analysis for all tier cities in Mainland China.  Detailed category analysis for provinces & 1st and 2nd tier cities  Daily Deal Winners & Losers benchmarkMerchant Advisor:  Select the most relevant daily deal website for your offer  Help to decide discount & pricing etc based on Dataotuan data. © Dataotuan.com - blog.dataotuan.com 26
  27. 27. Dataotuan New Countries Announcements – 1 Dataotuan Singapore is out of its soft launch, see singapore.dataotuan.com Dataotuan Malaysia is out of its soft launch, see malaysia.dataotuan.com Dataotuan Philippines is out of its soft launch, see philippines.dataotuan.com Dataotuan Taiwan is out of its soft launch, see taiwan.dataotuan.com Dataotuan Australia is in soft launch, see australia.dataotuan.com Dataotuan New Zealand is in soft launch, see newzealand.dataotuan.com Dataotuan offers from now on also the sales & data products for Singapore, Malaysia, The Philippines, Taiwan, Australia & NZ Indonesia, Middle East & HK will be data ready soon. If you like Dataotuan to track a specific country, please contact us © Dataotuan.com - blog.dataotuan.com 27
  28. 28. Dataotuan Map Announcements – 2 Dataotuan has Customizable Deal Maps for each Country © Dataotuan.com - blog.dataotuan.com 28
  29. 29. Dataotuan Mobile Announcements – 3 Dataotuan has Mobile, location aware HTML5 websites for each Country © Dataotuan.com - blog.dataotuan.com 29
  30. 30. Contact Dataotuan We’re happy to help you, please contact us at: Chinese +86 13761796676 Email: wenli@dataotuan.com English +86 13801660890 Email: gemme@dataotuan.com Read more on blog.dataotuan.com Follow us on twitter.com/dataotuan weibo.com/dataotuan Subscribe to our Reports reports@dataotuan.com The objective of this report is to offer insights into the Chinese Daily Deal industry. Data are collected from the main Chinese deal websites and offer a reliable indication of the Chinese daily deal market The daily deal websites that unfortunately are not included due to not providing correct data access (api)is groupon.cn. QQ changed its business mode.It’s not a daily deal site anymore.So Dataotuan excluded QQs data from 2011 Sep. Please contact us if you have any questions/remarks related to this report. © Dataotuan.com - blog.dataotuan.com 30

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