Source: PricewaterhouseCoopers-FICCI : The Indian Entertainment Industry, An unfolding Opportunity - Report March 2005.
Business World. January 2005, PricewaterhouseCoopers-FICCI : The Indian Entertainment and Media Industry. March 2006
See Appendix: Home video rental market : 2010
Source: iSuppli Corp, November 2005.
Seekers+: Households with annual income of INR 200,000 and above. Source: The Great Indian Middle Class: Results from the NCAER Market Information Survey of Households (2004, NCAER and Business Standard)
* 1 USD = INR 46 * C = Crore 2005- 06 2009-10 Entertainment & media industry 7.6 billion USD (INR 35,300 C) 2 18.2 billion USD (INR 83,740 C) 2 Indian filmed entertainment 1.5 billion USD (INR 6,800 C) 1 3.33 billion USD (INR15,300 C) 1 Home video 87-217 million USD (INR 400 -1000 C) 2 434 million USD (INR 2000 C) 2 Home video rental NA 409-817 million USD (INR 1,880– 3,760 C) 3 Installed base of DVD players 11 million (by end of 2006) 4 66 million (by end of 2010) 4 Target households (Seekers+) 20 million 5 32.5 million households 5
Market Opportunity Source: PricewaterhouseCoopers, Wall Street, eMarketer Market opportunity (sample 2) 2006-07 2010-11 Global advertising $55 billion $81.1 billion US online advertising $20 billion $36 billion Local classifieds $3.3 billion $12 billion People reading news online 80 Million (US) 250 Million (US) Broadband subscribers 300 million 540 million Wireless subscribers 1.1 billion 3.4 billion
Business overview 2005-06 ABC media Pvt. Ltd. Current No. of Markets Markets No. of employees Monthly Unique visitors Signup users Paid users % conversion rate from Visitors to Signups Annual Revenue rate ARPU Visitor Customer Acquisition Cost Paid Customer Acquisition Cost Projects (end of 2009) No. of Markets Markets No. of employees Monthly Unique visitors Signup users Paid users % conversion rate from Visitors to Signups Annual Revenue rate ARPU Visitor Customer Acquisition Cost Paid Customer Acquisition Cost
Key metrics 2005-06 ABC media Pvt. Ltd. Subscribers Churn rate Customer acquisition cost Content Total Number of Titles Percentage titles active in last 3 month DVD turn around time Operational scale Average DVDs delivered per day Economics Revenue per rental Customer care costs per rental Fulfillment cost per rental Total direct operational cost per rental Contribution Margin Contribution Margin % Capacity utilization Customer care capacity utilization Field Team Capacity utilization, current delivery process Packing Team Capacity utilization
Team 2005-06 ABC media Pvt. Ltd. Team member name, CEO & Co-founder
7+ years of leadership experience in startups
Worked with Sonim Inc, Telephia Inc, wireless telecom startups, and Compaq
3+ years of free-lance experience in film making & theatre
B.E. EE (XYZ University)
Business Development and Partnerships
Team member name Chief Operating Officer & Co-founder
PGDM (IIM Calcutta), B.Tech CS (IIT Delhi)
7+ years in enterprise software development.
Strong background in project management.
Experience in organization building as part of middle management at two technology startups.
Worked with Cisco, Broadvision, Infosys
Billing and Collections
Team member name, Chief Product Officer & Co-founder
Masters in Communications (ABC University)
10+ years of experience in Print Media, Radio, Television, Films, e-learning, tech writing and theatre.
Experience in various positions from free-lance writer to director.
Worked with Times of India, Zee News, IBM, GE
Customer Acquisition & Marketing
Advisory board 2005-06 ABC media Pvt. Ltd. Advisor Name ( Strategy, Team Building, Fund Raising)
Head, Strategy and Corporate affairs, at XYZ Company. Board member in 5-6 companies
Key Work-ex : Founder Cocoon ventures, CEO , ABCTechnologies
Member, Band of Angels, Mumbai. Charter member, TIE Mumbai
Advisor Name ( Retail, Logistics, Strategy)
CEO, ABC XYZ ( premier retailing company)
Key Work-ex : Director on the Board of Reebok India, Director (Operations) Phoenix International Ltd
B.E., REC Jaipur, with 2nd Rank
Advisor Name ( Business Growth, Team Building)
Angel investor. Member of "Band of Angels" , New Delhi, India
Key Work-ex: Paypal , Citibank
PGDM, IIM, Ahemdabad. B. Tech, Mechanical Engineering, IIT Mumbai
2005-06 ABC media Pvt. Ltd. Pain points – Movie rentals Quality Bad quality discs. Pirated discs Service Low quality customer service Selection Limited titles to choose from Availability Unavailability of new/popular movies Access Hard to find. Long drives. Parking issues Identification Hard to identify movies I want to watch Economy DVD rentals ranging from Rs 60-100 per day. Late Fees Extra
Business Model 2005-06 ABC media Pvt. Ltd. C U S T O M E R S Technology Content Acquisition Customer Acquisition / Marketing Product Mix Customer Care (Web, SMS, Phone, retail stores) Fulfillment
Customer acquisition channels 2005-06 ABC media Pvt. Ltd. Current Mix Details Response Outdoor Activities
Outdoor Canopies in apartments, offices, market areas
Door to door campaigns
Good Member referral / Employee Referral 25% discount on monthly renewal on member referrals. Good Outdoor Activities
Outdoor Canopies in apartments, offices, market areas
2005-06 ABC media Pvt. Ltd. Per rental Economics Scenario 1 - Now Scenario 2 - PreVC Scenario 3 - Steady State Revenues Revenue per Rental Customer Care Customer Care Costs per Rental Fulfillment Forward Logistic Cost per Rental Reverse Logistic Cost per Rental Cover Contribution Margins New Hit Movies Purchase cost End of life value Content Cost to be covered Number of Rentals for Break even Expected Rentals Avg turn around time (days) Demand life Rentals Content Cost/Rental Gross Margin Gross Margin % Other movies (with consistent Demand) Purchase cost Content Cost to be covered Number of Rentals for Break even