ybee Island has landed a starring role in the new Miley Cyrus movie, and audiences seeing the film next year won't have to wait for the credits to find out the name of the beach town filling the screen.
Location managers for the movie "The Last Song," which starts filming on Tybee next week, told residents at a town meeting Monday that the island proved too unique to masquerade as Wrightsville Beach, N.C.
Novelist Nicholas Sparks, who wrote the movie's script, initially set the story in Wrightsville and Wilmington, N.C. But filmmakers persuaded him to change the location to Tybee Island and neighboring Savannah so they could include local landmarks such as the island's towering lighthouse and the oak-shaded squares in Savannah's historic district.
"We had a hard time trying to hide the fact that this was Tybee and Savannah was Savannah," Bass Hampton, the film's location director, told about 80 residents at Tybee city hall.
The movie features 16-year-old Cyrus, the star of "Hannah Montana," as a teenage girl struggling with her parents' divorce who tries to reconnect with her father during a summer at his home in a quiet beach town.
Filming starts Monday on Tybee Island, 12 miles east of Savannah, and is expected to stretch into mid-August.
The Walt Disney Co. had considered making the film in North Carolina, but ultimately chose Georgia because the state offered a better incentive package. Local officials estimate the production will bring $8 million in direct spending to the area during the next two months.
Having Tybee Island's name on the screen - on signs for a beach festival and emblazoned on police cars and fire trucks - should make for an even bigger payday after the movie hits theaters in 2010, said Diane Schleicher, Tybee's city manager.
"When the film releases, the impact on the economy here is going to be immense," Schleicher said.
Still, there will be some drawbacks for the island's 3,400 residents.
Hampton said filmmakers will spend several days shooting at the island's fishing pier, which will mean closing the attraction to visitors periodically, and roadblocks will go up around the beach house being used as a location.
Tybee resident Monty Parks, who opened an Internet cafe near the pier a few months ago, said he hopes to sell plenty of lattes to the film crew and gawking tourists.
"If you're somebody who wants Tybee to stay out of the limelight, you're going to be broken-hearted," Parks said. "I think there's going to be a lot of people here. It's going to be great for me."
Tuesday, June 9, 2009
Universal Hangover
In Hollywood, bad news travels fast. I was sitting in the stands Saturday evening at a Little League playoff game when one of my fellow coaches, who happens to work in the business, leaned over and shared the news -- "Land of the Lost" was a goner, getting trounced by "The Hangover."
The Will Ferrell film ended up a distant third to "The Hangover" and "Up," making $18.7 million in its opening weekend, an especially woeful number for a movie that cost $100-million-plus to produce. In Hollywood, a town full of gleeful Monday morning quarterbacks who love to dance on a freshly dug grave, everyone was eager to poor-mouth Universal Pictures, which has now released three straight duds since the studio had a surprise spring smash with "Fast & Furious."
Much of the most embarrassing questions focus on Ferrell -- and whether his movie-star credentials should be revoked -- and Universal, whose belief in the costly special-effects comedy seems so wrongheaded that it raises concerns about the studio production team's decision-making acumen. But to understand why "Land of the Lost" failed you also have to understand why "The Hangover" soared to a $45-million opening.
Put simply, the movie that won the weekend succeeded because it had a great title, a strong concept and, after gaining a stranglehold on its core audience -- young guys -- it had such great buzz that it expanded into all four quadrants. "The Hangover" built up such a head of steam that it even attracted a huge contingent of female moviegoers who relished the idea of seeing a guys' weekend in Vegas gone comically bad. According to Warner Bros.' marketing chief Sue Kroll, women made up an astounding 46% of the film's opening weekend audience.
Once she realized that the film played with women, Kroll went after them with a vengeance, cutting female-friendly TV spots that played all across the TV spectrum, including such heavily women-oriented shows as "America's Next Top Model," "Dollhouse" and "One Tree Hill," along with the finales of such top network shows as "Lost" and "The Office."
Kroll knew she hit pay dirt when she went to the hair salon on Saturday. She listened with delight as a pair of women relived the uproarious time they'd had seeing the film with friends the night before. "One of them said, 'I loved that guy who was missing a tooth -- he reminded me of my ex-boyfriend,' " Kroll recalled. "And then she said, 'Everyone loves that movie. My mother's going to see it now too.' "
Right, wrong mix
That is what is called major-league buzz -- when even grandmothers are going to see a movie whose target audience is 19-year-old boys. Still, the biggest surprise for me was that Warner made the movie in the first place. Studio chairman Alan Horn, who frequently nudges filmmakers into getting rid of unnecessarily foul language, casual sex and cigarette smoking, is famous for his squeamishness when it comes to raunchy comedy. When I got him on the phone Monday I teased him, asking him how it felt to have such a big hit with a movie that must've made him hold his nose when he was pressing the greenlight button.
"OK, I admit that the film did make me a little squeamish," Horn said with a laugh, "On the other hand, I'd like to think I'm a little more open-minded than I was a couple of years ago. But give all the credit for this to [Warner Bros. Pictures Group President] Jeff Robinov. It was Jeff and his troops who got [director] Todd Phillips involved, allowed the movie to be R-rated and let Todd make the movie he wanted to make. Having worked with Todd on 'Starsky & Hutch' I knew he was a funny guy and had a lot of confidence in his comic instincts. But Jeff really ran point on this. He's my partner in the filmmaking process, and I think it's appropriate that our movies reflect his sensibility. He clearly knew what he was doing."
It would be hard to say the same thing about Universal and Ferrell's experience with "Land of the Lost." The movie's disastrous opening had to come as an especially cruel blow to Ferrell, since Phillips -- the man who directed the film that walloped him -- was the man who made Ferrell a star with "Old School." In a way, you could say that Ferrell was in the wrong movie, since Ferrell's biggest successes have been in outrageous comedies like "Old School," "Talladega Nights" and "Blades of Glory," films with essentially the same ingredients as "The Hangover."
As one rival studio marketer put it: "Will got creamed by a movie from the genre he helped popularize -- the R-rated stupid-guy comedy. It helped that it had a great title, but anyone who saw one TV spot knew what 'The Hangover' was supposed to be. No one ever knew what 'Land of the Lost' was going for. Was it supposed to be scary -- or was it supposed to be stupid? The end result was neither fish nor fowl, a family movie with a scary dinosaur and a movie star best known for frat-boy humor. It was a bad mix."
No one at Universal is talking. But it's pretty obvious that when the studio greenlighted the movie last year, it was following the model of 20th Century Fox's success with "Night at the Museum," which put a somewhat edgy comic star -- Ben Stiller -- into a family comedy that boasted eye-popping special effects. In theory, the result would have been "Night at the Museum" meets "Jurassic Park."
On paper, it sounded like a Big Summer Event. But even Big Events need to start with a core audience, and "Land of the Lost" never had a red-hot core. Moviegoing families were put off by the scary dinosaurs and the film's PG-13 rating ("Night at the Museum" was rated PG), while Ferrell fans thought the film looked too soft, especially with a true hard-edged comedy playing next door at every multiplex in town.
The movie itself had no central comic theme or focus. Directed by Brad Silberling, it was filled with everything from a running joke involving "A Chorus Line," a strange acid-trip sequence, homages to Ray Harryhausen and his stop-motion model animation and "Planet of the Apes," lewd primate gags and a scene in which Ferrell douses himself with a jug of dinosaur urine.
Mis-direction
If Universal made a key mistake, it was probably hiring Silberling to direct the film, since judging by some of his interviews, he seemed to be under the impression that he was at work on an exercise in filmmaking art instead of delivering a comedy thrill ride. It isn't easy to find good comedy directors -- and, no doubt, Ferrell and his manager, Jimmy Miller, had a big say-so in hiring Silberling -- but the filmmaker's recent track record hardly inspires confidence (his last commercial effort, 2004's "Lemony Snicket's A Series of Unfortunate Events," was considered a missed opportunity at creating a family franchise).
The movie leaves Ferrell in a bad place. When Adam Sandler tried to draw his hard-core fans to the family friendly "Bedtime Stories," it wasn't a breakout hit. But it certainly wasn't a total clinker like "Land of the Lost." The verdict in Hollywood: Ferrell hasn't done a good job of managing his brand. Sandler is the master of dumb hijinks. Eddie Murphy has become a cuddly family star. But who is Will Ferrell? No one knows anymore.
He's in danger of becoming the comedy equivalent of George Clooney, someone who enjoys a great deal of goodwill but who isn't actually a real movie star. That's what happens when you go down with the ship, promoting a movie that, as the New York Post's Lou Lumenick memorably put it in his review, "does not seem aimed at any identifiable demographic except fans of bad movies."
patrick.goldstein @latimes.com
The Will Ferrell film ended up a distant third to "The Hangover" and "Up," making $18.7 million in its opening weekend, an especially woeful number for a movie that cost $100-million-plus to produce. In Hollywood, a town full of gleeful Monday morning quarterbacks who love to dance on a freshly dug grave, everyone was eager to poor-mouth Universal Pictures, which has now released three straight duds since the studio had a surprise spring smash with "Fast & Furious."
Much of the most embarrassing questions focus on Ferrell -- and whether his movie-star credentials should be revoked -- and Universal, whose belief in the costly special-effects comedy seems so wrongheaded that it raises concerns about the studio production team's decision-making acumen. But to understand why "Land of the Lost" failed you also have to understand why "The Hangover" soared to a $45-million opening.
Put simply, the movie that won the weekend succeeded because it had a great title, a strong concept and, after gaining a stranglehold on its core audience -- young guys -- it had such great buzz that it expanded into all four quadrants. "The Hangover" built up such a head of steam that it even attracted a huge contingent of female moviegoers who relished the idea of seeing a guys' weekend in Vegas gone comically bad. According to Warner Bros.' marketing chief Sue Kroll, women made up an astounding 46% of the film's opening weekend audience.
Once she realized that the film played with women, Kroll went after them with a vengeance, cutting female-friendly TV spots that played all across the TV spectrum, including such heavily women-oriented shows as "America's Next Top Model," "Dollhouse" and "One Tree Hill," along with the finales of such top network shows as "Lost" and "The Office."
Kroll knew she hit pay dirt when she went to the hair salon on Saturday. She listened with delight as a pair of women relived the uproarious time they'd had seeing the film with friends the night before. "One of them said, 'I loved that guy who was missing a tooth -- he reminded me of my ex-boyfriend,' " Kroll recalled. "And then she said, 'Everyone loves that movie. My mother's going to see it now too.' "
Right, wrong mix
That is what is called major-league buzz -- when even grandmothers are going to see a movie whose target audience is 19-year-old boys. Still, the biggest surprise for me was that Warner made the movie in the first place. Studio chairman Alan Horn, who frequently nudges filmmakers into getting rid of unnecessarily foul language, casual sex and cigarette smoking, is famous for his squeamishness when it comes to raunchy comedy. When I got him on the phone Monday I teased him, asking him how it felt to have such a big hit with a movie that must've made him hold his nose when he was pressing the greenlight button.
"OK, I admit that the film did make me a little squeamish," Horn said with a laugh, "On the other hand, I'd like to think I'm a little more open-minded than I was a couple of years ago. But give all the credit for this to [Warner Bros. Pictures Group President] Jeff Robinov. It was Jeff and his troops who got [director] Todd Phillips involved, allowed the movie to be R-rated and let Todd make the movie he wanted to make. Having worked with Todd on 'Starsky & Hutch' I knew he was a funny guy and had a lot of confidence in his comic instincts. But Jeff really ran point on this. He's my partner in the filmmaking process, and I think it's appropriate that our movies reflect his sensibility. He clearly knew what he was doing."
It would be hard to say the same thing about Universal and Ferrell's experience with "Land of the Lost." The movie's disastrous opening had to come as an especially cruel blow to Ferrell, since Phillips -- the man who directed the film that walloped him -- was the man who made Ferrell a star with "Old School." In a way, you could say that Ferrell was in the wrong movie, since Ferrell's biggest successes have been in outrageous comedies like "Old School," "Talladega Nights" and "Blades of Glory," films with essentially the same ingredients as "The Hangover."
As one rival studio marketer put it: "Will got creamed by a movie from the genre he helped popularize -- the R-rated stupid-guy comedy. It helped that it had a great title, but anyone who saw one TV spot knew what 'The Hangover' was supposed to be. No one ever knew what 'Land of the Lost' was going for. Was it supposed to be scary -- or was it supposed to be stupid? The end result was neither fish nor fowl, a family movie with a scary dinosaur and a movie star best known for frat-boy humor. It was a bad mix."
No one at Universal is talking. But it's pretty obvious that when the studio greenlighted the movie last year, it was following the model of 20th Century Fox's success with "Night at the Museum," which put a somewhat edgy comic star -- Ben Stiller -- into a family comedy that boasted eye-popping special effects. In theory, the result would have been "Night at the Museum" meets "Jurassic Park."
On paper, it sounded like a Big Summer Event. But even Big Events need to start with a core audience, and "Land of the Lost" never had a red-hot core. Moviegoing families were put off by the scary dinosaurs and the film's PG-13 rating ("Night at the Museum" was rated PG), while Ferrell fans thought the film looked too soft, especially with a true hard-edged comedy playing next door at every multiplex in town.
The movie itself had no central comic theme or focus. Directed by Brad Silberling, it was filled with everything from a running joke involving "A Chorus Line," a strange acid-trip sequence, homages to Ray Harryhausen and his stop-motion model animation and "Planet of the Apes," lewd primate gags and a scene in which Ferrell douses himself with a jug of dinosaur urine.
Mis-direction
If Universal made a key mistake, it was probably hiring Silberling to direct the film, since judging by some of his interviews, he seemed to be under the impression that he was at work on an exercise in filmmaking art instead of delivering a comedy thrill ride. It isn't easy to find good comedy directors -- and, no doubt, Ferrell and his manager, Jimmy Miller, had a big say-so in hiring Silberling -- but the filmmaker's recent track record hardly inspires confidence (his last commercial effort, 2004's "Lemony Snicket's A Series of Unfortunate Events," was considered a missed opportunity at creating a family franchise).
The movie leaves Ferrell in a bad place. When Adam Sandler tried to draw his hard-core fans to the family friendly "Bedtime Stories," it wasn't a breakout hit. But it certainly wasn't a total clinker like "Land of the Lost." The verdict in Hollywood: Ferrell hasn't done a good job of managing his brand. Sandler is the master of dumb hijinks. Eddie Murphy has become a cuddly family star. But who is Will Ferrell? No one knows anymore.
He's in danger of becoming the comedy equivalent of George Clooney, someone who enjoys a great deal of goodwill but who isn't actually a real movie star. That's what happens when you go down with the ship, promoting a movie that, as the New York Post's Lou Lumenick memorably put it in his review, "does not seem aimed at any identifiable demographic except fans of bad movies."
patrick.goldstein @latimes.com
Monday, June 8, 2009
Movie tickets will shortly cost you more
MUMBAI: Watching movies at theatres will soon be more expensive as the Congress-led Democratic Front (DF) government has accepted the demand of the Cinematograph Owners and Exhibitors Association and threatre owners' associations to increase service charge.
"Chief minister Ashok Chavan has accepted their demand. We are amending the Bombay Entertainment Duty Act for the purpose. A bill to amend the Act will be introduced in the monsoon session of the state legislature commencing from June 1,'' a senior official said.
According to the amendment, it has been proposed to increase the service charge in case of ordinary and air-cooled cinemas from Rs 3 to Rs 5, and in case of air-conditioned cinemas, from Rs 4 to Rs 6. "We expect that the additional service charge will be utilised for strengthening the infrastrucure of cinemas,'' the official said.
Further, the government will permit theatre owners to levy a service charge of 50 paisa per ticket, in case of the cinema having computerised ticket terminal network, to help them meet maintenance charges.
The state has also proposed to reduce by half the entertainment duty levied on award functions. These functions, organised by film or television industry bodies or media organisations, feature song and dance performances and other items.
At present, an entertainment duty to the extent of 25% is levied on the sponsorship amount for the function. It has been observed that as the entertainment duty is high and it is difficult to cross-check the details submitted by the organisers, the revenue received is meagre. With the duty now proposed to be 12.5%, the state expects it would help mobilise more revenue.
It has been proposed that all cultural programmes sponsored by the state government or state-run undertakings, autonomous body or educational institutions, will be exempted from the provisions of the Entertainment Tax Act.
"Chief minister Ashok Chavan has accepted their demand. We are amending the Bombay Entertainment Duty Act for the purpose. A bill to amend the Act will be introduced in the monsoon session of the state legislature commencing from June 1,'' a senior official said.
According to the amendment, it has been proposed to increase the service charge in case of ordinary and air-cooled cinemas from Rs 3 to Rs 5, and in case of air-conditioned cinemas, from Rs 4 to Rs 6. "We expect that the additional service charge will be utilised for strengthening the infrastrucure of cinemas,'' the official said.
Further, the government will permit theatre owners to levy a service charge of 50 paisa per ticket, in case of the cinema having computerised ticket terminal network, to help them meet maintenance charges.
The state has also proposed to reduce by half the entertainment duty levied on award functions. These functions, organised by film or television industry bodies or media organisations, feature song and dance performances and other items.
At present, an entertainment duty to the extent of 25% is levied on the sponsorship amount for the function. It has been observed that as the entertainment duty is high and it is difficult to cross-check the details submitted by the organisers, the revenue received is meagre. With the duty now proposed to be 12.5%, the state expects it would help mobilise more revenue.
It has been proposed that all cultural programmes sponsored by the state government or state-run undertakings, autonomous body or educational institutions, will be exempted from the provisions of the Entertainment Tax Act.
Bollywood producers and multiplex owners stand-off ends
Munish Kalia, manager, Safari Cinema in London's Middlesex, is a happy man as the stand-off between Bollywood producers and multiplex owners came to an end early on Friday morning. Kalia is no longer required to down the shutters of his movie theatre from Monday, which he had planned to do earlier in the absence of new Hindi movie releases.
Movie theatres in cities such as New York, Vancouver, London and Dubai took a big beating as the flow of films from Bollywood came to a standstill and many have had to temporarily close down. The bane of contention was over revenue sharing and the deadlock had prevented new films from being shown in Indian and global multiplexes since April 4, 2009.
Producers demanded a 50-50 per cent share in the profits generated by the cinemas, while theatre owners argued the producers' cut should be less if a film does poorly at the box office. The multiplex owners wanted a performance-linked model based on a film's budget and star power.
A phone call to the Eagle theatre in New York, makes the picture clear. "Due to the Bollywood strike Eagle Theatre is closed," a recorded voice says.
The Raja Cinema in Vancouver also shutdown on May 12. "We'll be temporarily closed but hope to reopen with a new movie in June," the theatre's website says. Its tickets are priced between $ 5 and $ 8.50.
These are ethnic theatres and are in cities having a large Indian diaspora. They depend largely on Bollywood content for their programming and are screening older films.
"We are screening Dostana currently but barely two to three people come as compared to almost 1,000 people coming in on weekends," Kalia said.
Murli Shanker, manager, Donya Cinema in Dubai was also hoping for the stand-off to end soon. His theatre is screening Jaane Tu Ya... Jaane Na and Ghajini.
"We are miles away from India but and not even involved in the issue but we're still affected. The stand-off only added to our woes of running a high maintenance business. Since there have been no new movies in a while, audiences will be curious which may see a lot of footfalls," Shanker says.
On June 5, the 50 per cent revenue share has been agreed on for the first week. Reports also suggest that all national multiplexes were part of this agreement.
Now, with some big-ticket releases like Yashraj Films' New York, Eros' Kambakkht Ishq and UTV's Kaminey scheduled for release in the next two months, things could be better for these theatres.
For the Rs 11,000 crore Indian film industry, overseas box-office revenues are a significant revenue stream. It is the second largest revenue stream after domestic box-office collections.
Overseas revenues contributed almost 9 per cent of the total revenues in 2008 and this is expected to grow to about 9.8 per cent by the end of 2009, according to the Ficci-KPMG report of the media and entertainment industry.
Movie theatres in cities such as New York, Vancouver, London and Dubai took a big beating as the flow of films from Bollywood came to a standstill and many have had to temporarily close down. The bane of contention was over revenue sharing and the deadlock had prevented new films from being shown in Indian and global multiplexes since April 4, 2009.
Producers demanded a 50-50 per cent share in the profits generated by the cinemas, while theatre owners argued the producers' cut should be less if a film does poorly at the box office. The multiplex owners wanted a performance-linked model based on a film's budget and star power.
A phone call to the Eagle theatre in New York, makes the picture clear. "Due to the Bollywood strike Eagle Theatre is closed," a recorded voice says.
The Raja Cinema in Vancouver also shutdown on May 12. "We'll be temporarily closed but hope to reopen with a new movie in June," the theatre's website says. Its tickets are priced between $ 5 and $ 8.50.
These are ethnic theatres and are in cities having a large Indian diaspora. They depend largely on Bollywood content for their programming and are screening older films.
"We are screening Dostana currently but barely two to three people come as compared to almost 1,000 people coming in on weekends," Kalia said.
Murli Shanker, manager, Donya Cinema in Dubai was also hoping for the stand-off to end soon. His theatre is screening Jaane Tu Ya... Jaane Na and Ghajini.
"We are miles away from India but and not even involved in the issue but we're still affected. The stand-off only added to our woes of running a high maintenance business. Since there have been no new movies in a while, audiences will be curious which may see a lot of footfalls," Shanker says.
On June 5, the 50 per cent revenue share has been agreed on for the first week. Reports also suggest that all national multiplexes were part of this agreement.
Now, with some big-ticket releases like Yashraj Films' New York, Eros' Kambakkht Ishq and UTV's Kaminey scheduled for release in the next two months, things could be better for these theatres.
For the Rs 11,000 crore Indian film industry, overseas box-office revenues are a significant revenue stream. It is the second largest revenue stream after domestic box-office collections.
Overseas revenues contributed almost 9 per cent of the total revenues in 2008 and this is expected to grow to about 9.8 per cent by the end of 2009, according to the Ficci-KPMG report of the media and entertainment industry.
Insight On Bookmyshow.com’s Revenue and Biz Model
At the recently held startup saturday meet in mumbai we met Head of Marketing, BigTree Entertainment Pvt. Ltd Mr.Roopesh Shah who disclosed numbers regarding their online ticket aggregator business Bookmyshow.com.
He gave the following statistics:
Bookmyshow is growing at a 40% CAGR
Per month stats
* 7.5 million page views
* 1.5 million unique visitors
* 2 lakh transactions
* 6.5 lakh tickets sold
Avg transaction per person is about 3.4 tickets.
Now lets analyze the above numbers given the fact that bookmyshow can book to 200 multiplexes with about 800 screens across India.
(as per joe’s comment below)
The total capacity of Multiplexes around the country is 12,600,000.
700 X 3 Shows X 30 days X 200 seats = 12,600,000 ( 12.6 Million)
The average sell out is less than 35% nationally. 4,410,000 ( 4.4 Million Tickets)
Bookmyshow’s claim = 650,000 Tickets
Thats 15% of all the Multiplex tickets NATIONALLY, are booked through bookmyshow!
Our Analysis
Even if we take the average ticket amount to be 150 rupees (remember its a multiplex). Then the rough monthly transaction value if you calculate it comes up to about 10 crore or so a month (6.5 lakh x 150 per ticket).
But they obviously isn’t their revenues as most of it goes to the theatre owner. But bookmyshow charges a convenience charge of 15 rupees per ticket which is their revenue so in effect they make about 1 crore a month in gross revenue.
Now besides for the people expenses the other direct expense to this is the transaction fee charged by payment gateways which comes up to about 3 rupees. Hence one can say that their net revenue would be about 75 lakhs a month. Thats about 9 crores a year.
Bookmyshow is one of the successes of ecommerce in India (besides for the obvious irctc). Even though the numbers are low they have gained huge market share as an aggregator and also because of the fact that they had pre-existing relationships with theatre owners due to their ERP solutions for movie tickets as Bigtree entertainment.
All in all this does suggest that there is immense scope in e-commerce provided you have the right business model and execution strategy in place.
Disclaimer: the original source of this report is watblog.com, and you can contact the publisher for any queries or questions on this : http://www.watblog.com
He gave the following statistics:
Bookmyshow is growing at a 40% CAGR
Per month stats
* 7.5 million page views
* 1.5 million unique visitors
* 2 lakh transactions
* 6.5 lakh tickets sold
Avg transaction per person is about 3.4 tickets.
Now lets analyze the above numbers given the fact that bookmyshow can book to 200 multiplexes with about 800 screens across India.
(as per joe’s comment below)
The total capacity of Multiplexes around the country is 12,600,000.
700 X 3 Shows X 30 days X 200 seats = 12,600,000 ( 12.6 Million)
The average sell out is less than 35% nationally. 4,410,000 ( 4.4 Million Tickets)
Bookmyshow’s claim = 650,000 Tickets
Thats 15% of all the Multiplex tickets NATIONALLY, are booked through bookmyshow!
Our Analysis
Even if we take the average ticket amount to be 150 rupees (remember its a multiplex). Then the rough monthly transaction value if you calculate it comes up to about 10 crore or so a month (6.5 lakh x 150 per ticket).
But they obviously isn’t their revenues as most of it goes to the theatre owner. But bookmyshow charges a convenience charge of 15 rupees per ticket which is their revenue so in effect they make about 1 crore a month in gross revenue.
Now besides for the people expenses the other direct expense to this is the transaction fee charged by payment gateways which comes up to about 3 rupees. Hence one can say that their net revenue would be about 75 lakhs a month. Thats about 9 crores a year.
Bookmyshow is one of the successes of ecommerce in India (besides for the obvious irctc). Even though the numbers are low they have gained huge market share as an aggregator and also because of the fact that they had pre-existing relationships with theatre owners due to their ERP solutions for movie tickets as Bigtree entertainment.
All in all this does suggest that there is immense scope in e-commerce provided you have the right business model and execution strategy in place.
Disclaimer: the original source of this report is watblog.com, and you can contact the publisher for any queries or questions on this : http://www.watblog.com
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