BookMyShow Business Model – Unicorn Economy
About BookMyShow – Founders, Funders and Facts
BookMyShow is an online event and movie ticketing platform that is owned by BigTree Entertainment Ltd. Started in 1999 as a Software Reseller for Movie Theaters.
Yes, They are Software Resellers, still!
The software is owned by New Zealand based Vista Group. Vista Group is primarily a SaaS and Solutions company for Media and Entertainment Groups.
The idea behind this type of platform came to the founders in 1999 and they outrightly bagged the rights to retail the cinema hall ticket management system (ERP) for movie theaters. They mention this on their website as well. Seems too much for a borrowed business model, isn’t it?
The started out as Software Resellers for Vista Group in which they offered these solutions including ERP to Movie Theaters (1999). Then during the dot com burst around 2000 they focused only on these sales and not the internet booking which was the initial idea. This was untill 2007.
They now had access to ERP (databases) of major movie ticketing theaters across the country. Exclusive rights baby! So they started out BookMyShow as a ticketing aggregator in 2007 and the rest is history.
BookMyShow Founders : C.E.O. Ashish Hemrajani quits his job at JWT, Co-Founder Parikshit Dar takes over Technology, and Co-Founder Rajesh Balpande takes over Finance.
BookMyShow Funding : Accel, Stripes, Network 18 and Saif Partners – About $150 Million.
BookMyShow Business Model
BookMyShow Business Model is one of those rare business model examples based on the internet that actually make money as internet handling fees / convenience fees on consumer services.
BookMyShow Business Model
BookMyShow Business Model is very straight forward.
It charges convenience fees on every ticket that is booked through the platform. They initially started out as free (zero convenience fee) for consumers and then when it gained popularity they started levying 10% internet handling fee plus taxes.
Different BookMyShow Business Models & Revenue Lines
BookMyShow has many streams of revenue.
Ticketing contributes to 60% of the total revenue that the company makes. The rest of the revenue comes from management based services.
- Movie Tickets (English, Hindi etc)
- Event Tickets
- Sporting Events – IPL, ISL, Pro Kabbaddi, World Cup, T20, ISL etc.
- Comedy Shows
- Theater Performing Arts
- Kids Activities
- Theme Parks
- Corporate Trainings and Sporting Events
- Offline Ticketing : People can book and pick up tickets from kiosks or touch points appointed by BMS team.
Non Ticketing Revenue:
- Spectator Management : Manage end to end logistics and requirements of events. From ticketing (online and offline) to ticket verification, to concierge and everything in between. They deploy manpower at these locations to take care of all this stuff and charges man hour based or event based fees.
- BMS has an on-ground service for vendors, where it gives a food and Beverages management system to F&B vendors at events. BMS has portable turnstiles, which can be transported from one venue to another. These turnstiles read barcodes and give entry, are manned by BMS employees and volunteers from the event (if any), who help the visitors with gate entry and guide them around the venue.
Advertising and Promotion Revenue :
- Any newbie who wants to promote their art work of films and short films can approach BMS to give them an “interest creation” boost with the online audience. BMS can take advantage of their huge page views to promote these new artists and their offerings.
- The F&B units of the venue can offer discounts on the platform of ticket booking over BMS and they pay BMS for hosting their offers on the App.
How does BookMyShow Work
BookMyShow has exclusive access to APIs that Vista ERP for movie theaters and multiplexes has and they have integrated those with the backend of the App that gives you real time availability of the movie tickets. Event tickets are numbered so no rocket science in that.
BookMyShow can open up these APIs to other players that can provide allied services to these groups. Parking, F&B, Shopping Retail Stores, Security for upselling and cross selling. Since BookMyShow’s upcoming competitor, TicketNew has scooped up Money from Alibaba Group [Read: How Alibaba Makes Money], it will now pose a serious competition to BookMyShow’s Business Model.
Disclaimer: Personal Opinions, Please use discretion, Indemnification to Author and the Blog for any liabilities arising out of using this information on your own without verification.