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MDI - Mandevian Knights


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MDI - Mandevian Knights

  1. 1. Industry- Mobile App MarketAt the end of 2011, there were 6 billion mobile subscriptions, that is equivalent to 87 percent of theworld population.• 30 percent of the world’s mobile users live in India and China.• Android is the top operating system for new smartphones sold in 2011.• In 2012 over 85 percent of new handsets will be able to access the mobile Web.• Mobile data usage is expected to grow 20-fold by 2017, as cost per megabyte continues to fall -International Telecommunications Union• 29 billion apps downloaded in 2011, up from 9 billion in 2010.• Direct revenue from the sale of apps, in-app purchases and subscriptions across smartphones and tablets rise to $36.7 billion by 2015.• Smartphone users have 22 apps (of which iPhone users have the most with 37).• The average price of a mobile app is falling rapidly on all vendor app stores, except Android.• One in four mobile apps once downloaded is never used again. -Deloitte Open Market Survey 2012
  2. 2. Rising Internet Penetration Increasing Mobile Internet Usage Scope of Mobile Apps in the rising digital Market Size of the Film industry & Scope of A mobile App to tap such a growth • There are only 12 screens per million population in India • This industry loses 300-400 cr. Per year due to piracy • Low screen penetration, high growth in mobile internet and movie sector provide an opportunity for an App which can reduce piracy and change the viewing experience Source : , KCPB internet trends
  3. 3. Target Market- Where are they? Mobile Application utilization by categories 16Percentage (Usage) 14 12 12 10 8 6 4 2 0 Base: Active Internet Users Urban India 2012, 30 cities Source: IMAI Report 2012 Our Target Market will Critics / consist of Reviewers On IMDb|Rotten Tomatoes|Rediff Target • people who are interested in remote Audience Movie Lovers access to movies.consists of • Critics/reviewers who Social Facebook|Twitter|Google+ are already on well known websites/Apps Networking The App will target audience who are on facebook and other social media websites to write their reviews. Facebook is the most famous social network in the world. Hence facebook users represent a sizeable portion of out potential user base.
  4. 4. Target Market- Customer Profile Working professionals Critics/ Reviewers Mr. Rahul Desai Mr. Arnab Sahay IT Professional Theatre Owner & a critic • Stryker Corp(salary-Rs.30,000pm) • Rediff | RottenTomatoes Residence:Bandra,Mumbai|Active Presence of Facebook & TwitterResidence: Rohini, Delhi Work : Gurgaon, Haryana • Watches Almost all the movies on the first day (premier ifWakes up at 7.30 am  Leaves for office at 8.30 am Spends possible)1.5 hrs in metro getting bored reaches office at 10  Leaves • Authentic reviews- Developed a large fan following over thefrom office at 6 pm Again 1.5 hrs of no entertainment  yearsReaches home at 7.30 pm • Directs plays and movies for his theatre College Students Age : 15-45 years |Semi Educated | Semi Urban & Profile Urban | Present on social media | Movie Fans Ms. Divya Subramanian Residence: Chennai College: Easwari collg Value Seekers Movie loversStudent- Mechanical Engineer Fun loving Socially Active • circle of 10 close friends Experiencers • Has more than 1000 facebook friends & 600 twitter followers • A lot of spare time during week ends and after college • Doesn’t want to spend too much on average movies but wants • Target group wants Movie on the go. to watch them • They are ready to pay for entertainment during idle • Wants a comprehensive app for movie ticket booking time • They have embraced technology and have significant presence on social media
  5. 5. Primary Survey - Insights No. of respondents: 67 | Age: 17-43 yrs | Professionals-19, Students-44, Critics-4I don’t have much time I get bored of watching to see the full movie Soaps during my free during exams time71% of the 81% respondents 75% peoplepeople I travelSaid that they When I have 23% respondents 79% people Isaid to know readymy want are what tosaid they see do nothing much to ratings on believe that the that they would friends paywatching a are for suchwanted to various websites reviews are like to watch comprehensivsee movies before watching authentic & movies in their e want to set ofon the go for movie I search unbiased mobile phones I don’tservices buy movies CDs, they are not ratings first & then handy!! decide on the movies If I buy a CD and I don’t like the Most of the Reviews movie, I feel Being a critic I want are paid reviews CHEATED!! to interact with movie fans
  6. 6. Customer Perception Follow my friends Authentic Movie Equity Price Features Engaging Features Feature Loaded Aesthetics No Frills Trailors /information RatingsPerception Map Ratings Fake Reviews Suspicion Mobile APP Experience Authentic?? Internal Knowledge Free / Premium Loyalty Post Confusion user Joining Influencers Write Reviews Reference Groups Own a movie External Critics Usefulness/ Security Movie Choice Payment Family/Friends
  7. 7. Competitor Assessment Ratings Not Present Present Present NA Present Present Present Forum Not Present Present Present Present Present Present Present Present Present Security Present but Present present Present Present but limited limited Hassle free Not Not Not Present Not Present Notmovie streaming Present present present but slow present present Engaging Below Features Good Moderate Average Poor Poor Good Moderate Movie Not Not Not Not Not Not Not Equity present present present present present present present Know what friends are Only Not Not Not Not Not Present Quantitative watching present Present Present present Present but poor Credibility of DependsReviews & ratings High Moderate High Moderate Low Moderate on views App is free Currently not present in India
  8. 8. What is MobiStream MobiStream is a mobile app via which movies can be streamed in real time . Users can stream movies either through premium account or free account. It also allows user to purchase fractional ownership of a movie. Fractional Ownership rights Video Streaming sharingPremium movie streaming No ads  Users can purchase ownership rights to a movie on mobistream by paying an Fast video streaming endorsement fee per right purchasedFree movie streaming  Endorsement fee will be determined Ads every 15 minutes through dynamic pricing Slow low quality video streaming Critic and User review section Movie Goodies sale Predict performance of new Recommend a Movie to friends movie
  9. 9. Introducing MobiStreamVideo camera signifies its The Logo with all its element is self explanatory connection to movies in conveying the features and purpose of the app to users Progress bar Signifies video streaming feature Name signifies that it is of the app an Mobile Movie Streaming App
  10. 10. Feature# 1 : MobiStream Core Idea:MobiStream Users can watch movies on mobile. There will be two kinds of viewership options available each movie--  Premium viewership : Complete high resolution movie with no ads to disturb the user at Rs. 15-30 per movie.  Free viewership : Complete Low resolution movie with 30 sec advertisement after every 15 minutes Day of release – 3rd week 4th week- 12th week Movie appears on Movie is released Movie is 3 weeks after the Mobistream 3 on DVD 3 monthsreleased in movie release ticket weeks after the after movie’s theatres sales decline official release official releaseMore than 95% of the total ticket sales potential of the movie is realized within 3 weeks of theofficial release of the movie. This is an opportune time for the release of the movie on mobistreamas to reach out to the untapped audience and prolong revenue generation for producers.
  11. 11. Feature# 2 : Fractional ownership of Movie  Users can buy fractional ownership of a movie on mobistream by paying an endorsement fee per right. The profit generated by the movie on the app is then apportioned among the rights owners. Two revenue stream for a particular movie are  Advertisements displayed during the movie  Revenue generated from premium viewership The fee amount to be paid by the user will be decided through Dynamic Pricing i.e. based on the demand of ownership rights of the movie the price of fractional ownership will be decided Feature# 3 : Recommend a Movie Users can recommend a movie by publicizing it on movie specific discussion forum User can also develop a inner circle of discussion to publicize a movie in his close friends What’s app can be used in cojection with this app to create a discussion forum for friends
  12. 12. Feature# 4 : Critic and User review section  Trusted reviews of various sites and portal will publicized on mobistream  Reviewers will be identified by their popularity and trustworthiness among the people  Additionally reviews will be shared not only on the overall movie but also on its micro aspects like direction, screenplay, acting, music, plot etc. User review scale Users can also review a movie by either blowing a whistle for the movie ( Like) or by asking his money back from the producer (Dislike) The count of whistles blown and money back asked will be displayed on the interface
  13. 13. Feature# 5 : Predict performance of new movie Get points based on accuracy of your prediction of performance of an unreleased movie Once a user reaches a certain point tally he can exchange the points for movie goodies or movie tickets Feature# 6 : Movie goodies sale Sale of movie goodies like caps, t-shirts, watches, bandanas, key chains etc. will be carried out on the mobistreamDistribution: Distribution of goodies will be enabled through strategic partnership with a logistic company for transportation. Buyer will be charged for logistics charges
  14. 14. Marketing plan – Focus on Viral and Stealth marketing with low cost and high reach initiatives -30 days 0th day 0-15 days 30days-1 year1. Create Intrigue, User seeding 1. Event Sponsorship & college Campaigns 2. Online buzz & Viral Marketing 3. Print Ads & OOH media2. Launch product & online marketing 1. BTL-Campus Media & Road Shows 2. ATL- Print, Cinema & Radio 3. Search Engine optimization 4. Affiliated marketing(SEO & SEM) 5. Facebook Page & Twitter Trends 6. Contests & Early bird Accounts3. Post Launch & Buzz Sustenance 1. E-mail Marketing 2. Follow my Friends, Affiliated marketing 3. Print Ads & Success stories 4. On site & App promotions-Interviews4. Long Term 1. Article based promotion 2. Success stories 3. Word of Mouth ATL BTL Unclassified
  15. 15. Marketing plan – Pre Launch Objective Create A Curiosity around ___________________________________________ MobiStreamMystery: Conceal the brand and keep the audience guessing about the offering MobiStream ProvidesThis will create an intrigue around the brand Print Ads Online Buzz & Viral Campaign College campaign & OOH media College contests: free Newspapers: movie tickets Times of India, Hindustan Times, Indian Express Social media: Malls: Facebook, Twitter, Four Danglers, Posters, Lifts, ele Pamphlets: Distributed Square, Google plus vators outside theatres ,Colleges Stations: Bus Behind bills: Movie stops, Metro, Railway tickets, Petrol bills Videos: Videos posted on facebook page to generate Theatres, Box office Magazines: interest Outlook, Masala, Filmfare Vehicle ads : cabs, Buses vans etc.
  16. 16. Marketing plan – Launch Objective Generate Buzz & intensive ___________________________________________• Branding Conversations about the brand and its features• Catch the eyeballs with spectacular campaigns• Early bird schemes for the users who register first on the websites Media | Print Ads| Facebook Pics | Twitter Trends | Mascots Mascots Print Ads Affiliated Marketing & Viral Campaign Newspapers: • Encourage Reviews & Mascots to be Times of India, Hindustan Critics used in selected Times, Indian Express • Interviews of film stars Metro Cities • Viral Videos of movie Pamphlets: Distributed trailers , about mobi outside theatres ,Colleges stream • Bollywood quiz on ATL Magazines: facebook & twitter Identify metros with Outlook, Masala, Filmfare • Early bird free maximum likelihood premium accounts of concept working • Free movie tickets & -Shoot online, print & Road Shows theatre ads in these cities
  17. 17. Marketing plan – Post Launch Objective Accelerate & create Mass appeal ___________________________________________• Leverage network of existing users- referrals• Create and focus on positive word of mouth through existing users to create a mass appeal Media | Online Referrals | Success Stories | Email Marketing | Sustained Conversations Publish Articles regarding people who have Critique with the critic Success Stories • made money through mobistream • Personal experiences of Visitors and members The monthly chosen best • Critics take on the app reviews will get a chance to interact with the best critics in the business & learn from • Users will get first time access to trailers with the expert themselves Referrals assured goodies if they suggest their friends to install this app Online Focus Movie Mania • Since Facebook and twitter are important platforms for Weekly Radio quizzes across both B2C and B2B marketing.,it is necessary to maintain major cities on Radio Mirchi the facebook & twitter pages by posting ads or Movie ,Radio one to extend reach Trivia Giving away free movie tickets to the winners of the contestLong term focus Viral Marketing Seed Marketing Stealth Marketing
  18. 18. App Interface Movie WindowsFirst Landing Page Free user can watch the full Premium user at a nominal movie but interspersed with fee can watch movie advertisements uninterrupted Trailers & Movie Buy Rights Page Sneak reviews by Online Cover flow can Previews of critics. tickets be scrolled upcoming & Community available through to Reviews available new releases interaction view trailers for quick glance forums before purchasing rights Navigation User can see the current price of No. of rights and Normal User ownership duration of Movie ownership needs rights and Viewing Premium no. of to be specified Landing Page User rights Buy Rights remaining
  19. 19. Watch Movie Page Website Interface Buy Rights Page •The first landing page on the website allows free user to watch the •Buy rights page on the website is similar to the mobile app page full movie at the click of a button. for seamless use. •Login option for premium users also available on the same page •Quick glance reviews available for the user to make an informed •Before watching the full movie the user has access to movie ratings decision. •Tickets can also be purchased using a quick link on the same page •Current price per unit and units remaining are updated regularly for the user to assess prospective viewership of a movie. Note : Video of the whole interface is shown in appendix 7- slide 33
  20. 20. MonetizationNumber of 3G Subscribers in 32 million • 3G subscribers expected toIndia (A) increase by 30% annuallyNumber of 4G Subscribers in 25,000 reaching 54 million by 2014India (B) • 4G subscribers expected to reachTotal high data speed mobile 32.25 million 5 million by 2014subscribers (A+B) Mobistream is targeting the high speed data mobile subscribers for high quality movie viewing experience Estimates: • 0.5% of the subscribers in first 6 months, and increases to 1% by the end of the first year • In second year we plan to reach 2% of the high speed mobile data subscribers • By the end of third year our goal is to reach 4% of the 3G and 4G mobile subscribers
  21. 21. Freemium Model Feature Free Premium Number of Number of Total no. of Latest Movies After a brief Immediately Period free users premium users users gapquarter 1 30000 10000 40000 Streaming Low High Qualityquarter 2 80000 20000 100000 Ads Yes (every Noquarter 3 140000 30000 170000 10min)quarter 4 200000 50000 250000 Forum Yes Yes year 1 450000 110000 560000 Per Movie Cost High Low year 2 675000 165000 840000 (if want to buy it, ad free) year 3 1012500 247500 1260000 Rights issue No Yes Movie No Yes• Assuming premium users to be approx Download 20% initially as users prefer to see Chat with Only View Yes movies in free Critics
  22. 22. Assumptions and EstimatesService/ Equipment CostCost charged to user per movie (latest) Rs. 30 20% of all movies rights boughtCost charged to user per movie ( 1month – 1yr old) Rs. 20 60% of all movies rights boughtCost charged to user per movie (>1yr) Rs. 15 20% of all movies rights boughtAdvertisements (In-stream) Rs. 4Rights cost (per share, maximum 1000 shares to be Rs. 10 – 100 (dynamic pricing)- taking anissued) average of Rs. 50 for easier calculationAverage movies watched per year(both free and 24/year at the rate of 2 movies per monthpremium)Average Indian Movie (in minutes) 150 minutesAverage releases per month (good earners, all over 100India)Cost of Movie Licensing Rs. 200000 per movieInterest rate 10% per annum
  23. 23. Income Statement for first 3 Years (in lakh Rupees) Heads 1yr 2yr 3yr Formulas applied Revenue Heads Ad breaks*No. of Free Advertisements 4416 6624 9936 users*No. of views by the user per year*AD cost Movie cost*No. of Movie Sales 554.4 831.6 1247.4 Premium users*No. of views by the user per year Average rights cost*No ofrevenue from rights 1000 1400 1750 shares*Movie releases total revenue 5970.4 8855.6 12933.4 Cost Heads No. of movies* Cost of a Movie Licenses 4000 5600 7000 movie license Infrastructure 80 300 500 Salary 55 100 250 Marketing Cost 500 400 300 Miscellaneous 100 100 100 Total cost 4735 6500 8150 Net Profit 12354 2355.6 4783.4 NPV 1123.1 1946.8 4348.5 10% interest rate TOTAL NPV 7418.4
  24. 24. “The whole of life is just like watching a film.Only its as though you always get in tenminutes after the big picture has started, andno-one will tell you the plot, so you have towork it out all yourself from the clues.”― Terry Pratchett, Moving Pictures Appendix will follow this slide
  25. 25. Appendix 1 : Mascot Inside Malls Mobistream Hat Muffler which looks like a movie reel Video Camera- The Inside Movie theatres mascot will ask people to speak dialogues from famous movies and record the video. The best act wins goodies and freePop corn signifies tickets Entertainment
  26. 26. Appendix 2 : Sample Teasers 1&2
  27. 27. Appendix 3 : Sample Teasers 3Tired of streaming…. Watch this space for more!!
  28. 28. Appendix 4 : The Facebook Page
  29. 29. Appendix 5 : Organizational Structure Managing Director Director of ChiefChief Finance Research and Marketing HR Head Officer Engineering Officer Account IT IT Social Product App/Website Sales HR functions Manager 1 Infrastructure Media Marketing Outdoor Campaigns Social Media Creative Head
  30. 30. Appendix 6 : Questionnaire Questionnaire Name Age Gender Profession Please Tick the Suitable options1. When do you normally go out for movies? On the day of release 1-2 weeks after release 1 month after release Wait for DVD2. Which of the following aspects do you feel is most important to a good movie? Cast Writing Special Effects Direction3. How do you feel about the quality of movies compared to movies of old? Theyve gotten much, much better. Theyre about on par with each other. Theyve gotten much, much worse. You cant compare them. Please Answer the following questions1. Would You like to see movies on the go ( eg. When travelling in train, waiting for someone in a restraunt)2. Do you wish to see ratings first before wathing a movie?3. Do you believe that the ratings and reviews on different websites and newspapers are authentic?4. Would you like to watch movies on your mobile phones?5. Are you ready to pay to watch movies through mobile phone?6. Do you believe you can Predict the future of a movie7. If you were to rate/critique a movie, what factors would you look at?8. Do you wish to know which movies your friends are watching?9. Do you see any future for Movie CDs and DVDs?10. What is movie watching experience according to you?
  31. 31. Appendix 7 : Mock Up VideoIf the video fails to work, please go to