1. DIRECTI CASESTUDY CONTEST
Team: ConArtists
Sairam Kandaswami pgp27113@iiml.ac.in
Indian Institute of Management, Lucknow
Cine Vue
- A window to tinseltown
2. Executive Summary
Cine Vue – A Comprehensive Movie Portal
- Comprehensive, veritable data on Indian movies
1 The Product - 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
2 The Market - 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
Marketing
3 Strategy
- 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
Revenue - Selling Targeted Advertising space on the website
4 Streams
- 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
3. 1
Agenda
1 State of the Film Industry
2 Internet in India
3 Gap Analysis – Movie Portals
4 Our Product
5 Marketing Strategy
6 Monetization Plan
4. 2
State of the Film Industry
Industry is expected to grow at a CAGR of 10.1% Distribution of revenue across sources
150.3
Industry Size in INR Billion C&S Rights Ancillary
134.5 11% Revenue Streams
121.1 5%
109.7 Home Video
100 2%
92.9
83.3
Overseas
Theatrical
8%
Domestic
Theatrical
2010 2011 2012P 2013P 2014P 2015P 2016P
74%
Home Video to decrease at an annual rate of 15%
2
1.7
1.4
1.2
1
0.9
2011 2012E 2013P 2014P 2015P 2016P
Source: Digital Dawn – FICCI & KPMG Report on Indian M&E Industry 2012
5. 3
Internet in India
Internet Penetration expected to reach ~30% by 2015 Broadband connections expected to reach 39 million by 2015
400 35%
29.50%
350 30%
300 21.70% 25%
250
15.30% 20%
200
15%
150 9.80%
6.60% 10%
100 5%
50 5%
60 80 120 190 273 376
0 0%
2010 2011 2012E 2013E 2014E 2015E
Unique users (millions) Penetration (%)
Entertainment sector added 15mn unique online visitors Internet Access from other devices
55.8 Tablets
47.8 Smartphone % Mobile traffic
43.6
40.6 41.1 0.17
PCs/Laptop % Mobile traffic
26 No. of units
% Mobile traffic 0.5mn
23 No. of units
33mn % Total traffic
No. of units 1
- % Total traffic
2
Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 % Total traffic
92
Source: India Goes Digital – Report by Avendus, Rise of India’s Digital Consumer - Comscore
6. 4
GlamSham (India) and IMDb (USA) – A Comparison
2 2
4
1 3
3
Accurate
Easy Content
Navigatio
1 Too many ads tend to put the user off n
1 No ads on the home page
Low Ad
visibility
2 Navigation is not in focus 2 Navigation is kept in focus
3 Highlight is on latest news not content 3 Limited news on homepage
Movie Portal Design
4 Online booking feature not clearly visible 4 Online booking feature clearly visible
5 No info on regional films or parallel films 5 Info on parallel films available
Source: Websites
7. 5
Gap Analysis – Movie Portals
National International
GlamSham BoxOfficeIndia IMDb Rotten Tomatoes Metacritic
Box Office
Available Available Available Available Available
Updates
Comprehensive Movie
Not Available Not Available Available Not Available Available
Data
Movie Reviews In-house Review Not Available Available Available Available
Not indexed by Not indexed by
Movie News Indexed Available Not Available
movie movie
DVD/ VOD Our Focus Available
Not Available Not Available Not Available Not Available
Availability
Online Movie
Via partners Not Available Via partners Available Not Available
Bookings
Basic Analytics
Analytics Not Available Advanced Not Available Not Available
Available
Movie Making Not Available Not Available Not Available Not Available Not Available
Other Device
Not Available Not Available Available Available Not Available
Support
Source: Websites
8. 6
Analysis of International Movie Portals
RottenTomatoes IMDb Metacritic
Percentage of traffic
24.2% 27.9% 18%
from search engines
Average time on site 3.5 minutes 4.2 minutes 2.75 minutes
Importance of
SEO
Site visits preceding
Google, IMDb, Facebook Google, Facebook Google, Facebook
this
General Audience 18-34 yr old, Educated 18-34 yr old, Educated 18-34 yr old, Educated
Positives Content Content, Speed, Deals -
Target Audience
Negatives Slow speed - -
Source: Alexa Search Analytics
9. 7
Our Product - Features
Aggregate movie
Create a paid
reviews from
service wherein
multiple reliable
independent Box Office sources. Create a
filmmakers can post Updates custom score based
their ideas to be
on user and critic
viewed by studios
reviews
Movie Movie
Making Reviews
Features
Online Collaborate with
Collaborate with Movie
VOD
BookmyShow to Availability BigFlix to show
Bookings
show the show movie availability
timings on the on the website. Also
website. Charge on provide VOD for
a per transaction parallel cinema
basis from the website
10. 8
Technical Aspects of Product Design
On Demand Service
On demand service
Price Comparison
Cloud hosting Web Service
Video-on-demand
(e.g. Amazon Cloud)
Database containing Web-based interface
movie info (MySQL) using PHP/ Java
Daily Batch
Film Review Aggregator
Web Crawler
CNN-IBN Movies Rediff Movies Yahoo Movies TOI
11. 9
Mockup Screen #1 – Home Page
UserID Password Login Search for a movie Search
Functionality
CineVu
e
Movies Home Video Film Making hangout
Week’s Top Earners Box Office News
Son of Sardar 12.6 crores
Skyfall 8 crores
Chakravyuh 6.5 crores
Ajab Gajab 5.7 crores
Newscast Associate Partners
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
Latest News
12. 10
Mockup Screen #2 - Movies
Welcome Rajiv Your Account Search for a movie
MOVIES
CineVu Rating computed
e
Movies Home Video Film Making hangout
based on user
(30%) and expert
Twilight: Breaking Dawn Part II – 115 min 8/10 Related Videos ratings (70%)
Breaking Dawn Part 2
Director: Bill Condon
Trailer 1
Writers: Melissa Trailer 2
Rosenberg, Stephanie Meyer
Premiere Night
Plot Summary: After the birth Interview with Kristen Stewart
(more)
of Renesmee, Cullens. (more)
Collaboration with
Other Details Cinema Show timings
BookmyShow
Official Site PVR – Lucknow
Release Date 1.15 3.30 4.15 6.30 9.00
Budget 10.55 (more)
Online
Reviews Sponsored Links Advertisements
Twilight series at 45% discount sold to bidders
Breaking Dawn www.bookstore.comTwilight
Amit N (TOI)
continues to……
Watch Movies for free
www.freemovies.com
The last part of Nisha S (CNN)
the series does..
Aggregated Expert
Reviews
13. 11
Mockup Screen #3 – Home Video
Welcome Rajiv Your Account Search for a movie
CineVu
Store Price Shipping
HOME Video
Home VIDEO
e
Movies Film Making hangout
299 FREE
Sponsored Links
Video on Demand service
Latest on DVD
www.VOdforfree.com
299 FREE
Watch Movies for free
www.freemovies.com
Compare Compare Compare Compare 275 FREE
Latest on VOD
299 FREE
View Now
Associate Partners 275 FREE
Rs. 50 Rs. 50 Rs. 50 Rs. 50
VOD service operated by Cine
Vue for parallel cinema
Movies, E-commerce websites shown are for indicative purposes only
14. 12
Mockup Screen #4 – Film Making
Welcome Rajiv Your Account Search for a movie
CineVu FILM MAKING For the Writer
e
Movies Home Video Film Making hangout
Premium service based on
yearly subscription
Platform to share ideas with
other members and film
industry
Submit Option to add suitable cast
for the story
Discuss
Pen down your ideas here For the Studio
Request Contact 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
15. 13
Defining the Target Audience
Target Audience
General Audience Focused Groups
Segmentation
• 18 – 34 years old • Serious cinema lovers
• Educated • Studios/Producers
• Computer Literate • Aspiring scriptwriters and
movie buffs
Based on the Gartner Hype
General Audience Cycle
Total Population: 1.24 billion Adoption time for technologies
Aged 15-64: ~800 million like online video is 2-5 years
Aged 18-34: ~400 million* Adoption Rate
Internet Penetration: 20%* Experience from
Target Market Size: ~80 million Rottentomatoes.com reveals that
~4-5 Years
the time to attain the critical mass
Focused Groups is around 6 years
Large production houses: ~20 Considering a better informed
audience today, the time to
adoption should be around 5
years
* Assuming 50% of the population over 15 years lies in the target bracket Source: http://www.gartner.com/technology/research/methodologies/hype-cycle.jsp
* Assuming internet penetration is higher for the target sector Source: India Census 2011
16. 14
Marketing Strategy – Action Plan
Phase 1 Phase 2 Phase 3 Phase 4
Engaging the Attracting the Engaging the
General
Objective Awareness
General serious movie production
Audience goers houses
Social media Affiliate TV TV
Plan marketing
Direct marketing Affiliate Direct marketing
Events marketing
Online
SEM Direct marketing
Social media Events
Snippets of Cost-benefit
Reward points &
Incentives Reward points
gift vouchers
discussions held analysis of
on the portal creating a plot
17. 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 Employ Facebook, Twitter as customer
engagement tools
Organize fun events around movies in colleges and designate
college ambassadors from 10 colleges Use the social media as a tool to build the customer base for
WOM advertising
Ambassadors will have the responsibility of contributing
information to the portal Increase movie count while Engage the customer group using quizzes and movie trivia
maintaining quality control
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
18. 16
Marketing Initiatives – Phase 2
Objective Engaging the target audience and establishing the brand name in the movie portal business
Search Engine Marketing Collaborative Promotions
Use targeted online ads using Google Adwords to attract the Collaborate with the affiliate partners to design integrated
attention of the target sector. Use the cost per click basis. promotional material
Use SEO to rewrite code so that it is displayed within to the For e.g. Cine Vue can be portrayed as a one stop solution to
top 20 results in a search the movie purchase decision
Affiliate Marketing The Rewards System – Vue Points
Cine Vue, BigFlix and Bookmyshow all have complementary All members registering in the first six months will be
businesses with strong correlation awarded 50 Vue points
Integrated marketing approach to be employed with cross- All campus ambassadors will be allotted additional 100 Vue
marketing across platforms points
Place ads on each others’ sites at distinct locations Redemption will be as follows: each Vue point is equal to Rs.
0.5
1% of revenue of each sale conversion will be awarded to the
corresponding party 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
19. 17
Marketing Initiatives – Phase 3 & 4
Objective Attract the attention of the serious movie going audience and production houses
TV Advertisements Advertise in between movies at cinema halls
Challenge is in reaching out to a less accessible audience
This is also an expensive mode of advertising but warranted
at this stage
Create attention grabbing television ads that will target the
serious cinema lovers.
Advertise in the leading theatre chains in the main cities and
towns in the country
Focus should be on the informational value and the credibility
of the business. Advertise mainly on the movie channels
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
20. 18
Monetization Plan – Revenue Stream 1
Stream 1 Advertising Revenue from selling advertising space on the website
1. Targeted Ads directed at our customers Sponsored Links
Video on Demand service
We will use the cost per click (CPC) method while www.VOdforfree.com
charging the advertisers on our website
Watch Movies for free
www.freemovies.com
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
21. 19
Monetization Plan – Revenue Stream 2 to 4
Partnerships with affiliates Revenue from aspirants and studios Sales from the VOD service
2. Revenue Sharing with the affiliate 3. Differential pricing for aspirants and
4. Video-on-Demand service
partners studios
BookmyShow.com and BigFlix will Aspiring artists will be charged an We will provide a VOD service
be used as a part of the affiliate annual subscription charge of Rs. focusing on parallel cinema alone to
network for marketing 3000 for posting their ideas on the the customers
site
The revenue sharing between the The service will be available on a
parties will be based on conversion The slightly steep price is to keep per movie basis or on an annual
of sales away non-serious customers subscription basis
BigFlix will be charged 1% of every Production houses will be charged The per movie charge will be Rs. 50
transaction that is routed through an annual subscription fee of Rs. and the annual subscription fee will
Cine Vue 10000 be Rs. 1000 for watching upto 30
movies a year
BookmyShow.com will be also be In addition to this, the aspirants will
charged 1% of every transaction also be charged a fee of Rs. 500 for
that is routed from our site every contact with a production
house
Both parties will be paid a nominal
amount upfront for showing Cine Production houses will be charged a
Vue adverts on their sites and fee of Rs. 2000 for every contact
diverting traffic to our site with an aspirant
22. 20
Financials
Cost Analysis Revenue Analysis
Amount Frequency Assumptions Frequen
Amount Assumptions
cy
One Time/ Annual Costs
Annual Revenues
Web Development Costs
Film Making Subscription
- Domain Name Regrt 535 One time
- Individuals 1500000 Yearly Assuming 500 subscribers by year 2
- Web Hosting 1000 Yearly
- Studios 30000 Yearly Assuming 3 studios by year 2
- Website Design 10000 One time
VOD Subscription
- Website Creation 2500 Per Page
- Individuals 500000 Yearly Assuming 500 subscribers by year 2
- Database Development 40000 One time
Cloud Server Subscription 30000 Per Year Based on Amazon EC2 pricing
On-going Revenues
On-going Costs Target Market Size 80,000,000
Assuming 0.01% penetration (year
Database Maintenance 100000 Yearly User traffic 80000 2)
Website Maintenance 60000 Yearly
Based on estimate of 6 web
developers and 3 Database Clicks per user 15 Assumption
Salaries 300000 Monthly administrators
Rent estimates for Navi Mumbai (600 Total Clicks 1200000 Yearly
Rent 70000 Monthly sq ft)
Target Advrt Revenue 420000 Yearly
TV Advertising
Site Referrals Revenue 800000 Yearly Assuming 4000 users for partners
- Popular Channels 150000 30 secs Assuming 1000 viewers of parallel
- News Channels 5000 30 secs No of VoD viewings 5000 cinema and 5 movies per user
Online Advertising
VOD Revenue 250000
- 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
Initially outsourced. Can be done in-
- SEO 7500 Monthly house later
23. 21
Organizational Structure
Cine Vue
CEO CTO CMO
Responsible for finance, Business Marketing Relationship
Engineering
operations and other Development Managers Managers
important decision
making
Responsible for overall Responsible for
website management maintaining relations
and enhancements with affiliate partners
and roping in new ones
24. 22
Roadmap for the future
Phase 4
Develop the portal for other
devices like tablets etc.
Month 24 onwards
Phase 3
Implement the Phase 2,3,4
marketing plan
Month 6 to Month 24
Phase 2
Implement the Phase 1 marketing
plan
Month 4 to Month 6
Phase 1
Develop the portal with all
features
Month 1 to Month 4