BookMyShow, entertainment ticketing company, is seeking to cut down the share of movies to almost 33% of its revenue in the following 3-5 years because the company increases its investments in content business and live events with the help of platforms like Movie Nation and Daily Social.
<strong><u>Share of the movie tickets in revenues</u></strong>
Share of movie ticket sales is 60-65% of total which was the main revenue source for the company since couple of years and now rest of the shares are associated with digital advertisement and life events.
The speculation is a piece of BookMyShow’s push to move from only an online business player to creating an engaged community of users or content play utilizing web-based social networking platforms like YouTube and Facebook.
<strong><u>Company is striving in a new direction</u></strong>
Ashish Hemrajani, CEO at BookMyShow said that, “We invested a lot in new areas like content (in FY17) and are focusing a lot on live (events) now. We are taking a new direction in the areas where we have been investing in, trying to change the course of the company”.
<strong><u>MNC propelled by the company</u></strong>
<u></u>Company has compelled multi-channel network (MCN) on YouTube with two channels including BookMyStyle and BookMyTv, other than Daily Social and Movie Nation, which have already claimed 100 million views in recent six months.
<strong><u>Company is to stretching its client database</u></strong>
These platforms help BookMyShow in acquiring of new customers along with its preexisting customers. Its strategy to strengthening its leg in live events and content business come in to alignment at the same time when Paytm has recognized films as one of its next $1billion net deals category with online travel. It is likewise allegedly in converse with obtaining a larger part stake in event ticketing startup Insider.
<strong><u>Mono Polies in Indian marketplace</u></strong>
The major push by Paytm has affected BookMyShow which was earlier having monopoly in the space of online ticket booking. Hemrajani added that such competition helps them to be active and push for better. He refrained from commenting any details about finances for fiscal year 2017.
He made a statement that, “I love it when competition spends, that means that they are not being intelligent about what they are doing. We are sitting at a time when we have seen enough people spend money and what their condition is”.
<strong><u>Digitation and online ticketing sales</u></strong>
<u></u>BookMyShow appreciated a virtual restraining infrastructure in the online ticketing space, and as per experts the market still has headroom to develop. Ajay Shah, partner-media & entertainment and transaction advisory services at EY said that,
“While both BookMyShow and Paytm cover multiplexes in most big cities, lot of smaller cities and smaller multiplexes and single screens are not yet covered. Also, the digitization push is helping drive ticketing sales online. In view of the aforesaid, there is a huge market that is up for grabs and both can coexist”.