BookMyShow is currently India’s largest online entertainment ticketing platform spread across 5 countries and operating in almost 60 cities.
It was earlier running under the brand of Big Tree Entertainment Pvt Ltd. BookMyShow was founded by Ashish, Parikshit, and Rajesh in the year 1999. It initially operated as a software reseller for movie tickets, but gradually ventured into cloud-based events, sports, and movies. The company’s founders have seen several ups and downs since the inception of the company.
The proposition of selling entertainment tickets online was initially conceptualized by Ashish Hemrajani who started a small venture in his bedroom at the age of 24. Since its establishment, BookmyShow has been on a roller-coaster ride. The company has seen it all; it survived the Dot Com crash in 2007 and sailed through the global financial crisis of 2008.
It managed to sail through tough times and emerged as the hero in the end. BookMyShow has become a platform offering a plethora of choices for its customers. Customers can now book tickets and surf trailers anytime from anywhere.
Establishment of BookMyShow
BookMyShow Revenue Model
BookMyShow Business Model
BookMyShow - How Does the Business Model Work?
BookMyShow - Revenue Strategy
FAQ
Establishment of BookMyShow
In the initial days of 1999, a Software Reseller of VISTA Group private company was founded. This company was started under the Big Tree Entertainment Private Limited Company, known to be a parent organisation for BookMyShow. It was started by Ashish Hemrajani, Parikshit Dar, and Rajesh Balpand.
Later, when the dot com raised its peak, the company modified by focusing on sales rather than booking through the Internet. This finally dissolved in 2007, and the website - BookMyShow was started as a ticketing aggregator.
BookMyShow has grabbed it all: cultural events, parties, concerts, shows, plays, fairs, and other international events as well. The company also introduced tickets for activities happening in one's vicinity. Booking has become easier than ever.
The company has been now following an upward trend in growth and innovations. In 2012, the company launched its Android and IOS app and since then, the company has never looked back. More than 30 million downloads have been made for the app version of BookMyShow.
It has over 16 million customers and 10 million+ tickets are sold per month. The funding of $150 million for BookMyShow comes from Accel, Network 18, Stripes and Saif Partners. Now by looking at the current analytics and data, BookMyShow is the 34th largest website according to Alexa and Indian's biggest website for booking tickets.
The app allows its users to check unto any event happening in and around them: timings, reviews, availability, trailers, and much more.
BookMyShow Revenue Model
BookMyShow Revenue Model has almost 90% of the market share under the entertainment ticketing sector. It is called the king of all; despite emerging competitors, BookMyShow revenue 2020 has managed to retain the leader's position.
The company’s quarterly revenue stood at $28 million in the last fiscal year. 50% came from the movie ticketing sector. $330 million of revenue comes from the live entertainment industry that includes sports, stand-up comedy, and other related events.
With the big guns relentlessly acquiring smaller competitors in this domain, a CAGR of 20% is expected in the online ticketing industry by 2020. The company has always focused on discounts especially on movie tickets and promotes payments through BookMyShow wallets; its wallet is the major source of revenue that contributes about 60% of the total revenue.
Piyush Mishra
The company charges a convenience fee over and above the price of the tickets. This difference is what BookMyShow keeps. As far as non-movie events are concerned, BookMyShow commission comes from the sale of such tickets.
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.
Book My Show 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 a 10% internet handling fee plus taxes.
BookMyShow - How Does the Business Model Work?
The working of the BookMyShow Business Model is absolutely brilliant. As we know BookMyShow does not charge any extra money on the hall services. So, how does it make the money? It works through the following sources:
Internet Handling/Convenience Fee
Whenever you book a ticket through the BookMyShow website, it charges you an additional price as the Internet Handling/Convenience Fee. This is basically a service fee that you have to pay to the company for providing you with the convenience of booking tickets easily online for any movies or event. This saves you from physically visiting and standing in line at the Ticket Centre.
Therefore, charging the Internet Handling or Convenience Fee becomes the major source of revenue for BookMyShow.
Ticket Sales Commission
BookMyShow is one of the biggest platforms for selling tickets. That's why it charges a commission fee from the cinema hall and event organisers based on the gross value of total tickets sold from the website of BookMyShow. This mainly depends on the popularity of the movie or event and the price of the ticket.
However, to save the little commission charge, the multiplexes or the event organisers put only a fraction of its total tickets on the BookMyShow website. That's why sometimes when BookMyShow shows "sold out" on any event or movie tickets, it may be available on the counter of multiplexes.
Banner Advertising and paid promotion
BookMyShow often earns through the banner advertising of the upcoming or the latest movie or event. It promotes the show or movie through its banner in the form of advertisements. Also, it earns great revenue from the paid promotion of certain movies and events on its website to catch the eyes of viewers and regular consumers.
Shubham Kumar
BookMyShow - Revenue Strategy
BookMyShow follows a strategy of no refund after payment. It also has a source of revenue from non-ticketing means. Due to its large internet audience, it has the first-mover advantage and promotes new artists and their offering, therefore catching up a significant part of the revenue from promotional methods as well.
BookMyShow has certain sources of revenue for the company. Its sources are:
Revenue through Tickets
On the selling of tickets for any movie or event, BookMyShow gets a commission from the organiser or cinema hall. This is a major source of revenue that comes around 60% of total revenue. The commission comes around as:
- From the additional charges of internet handling and gap on booking tickets.
- Convenience fee over the pricing of tickets.
- Commission through the ticket booking.
Revenue through other events
When a company wants to promote their new artwork, film or artists, they sign BookMyShow for its promotion through its massive page views.
BookMyShow offers tickets from all categories and shows such as sport, dramas, plays, tours and many more. You can search through the categories and find your interest-based show. Once the ticket is booked, it cannot be cancelled or postponed.
Ashwini
The business thrived despite no investor support from 2002 to 2006. After the Dot Com boom settled, the Indian market was revamped with better internet services, credit, and debit card facilities, and infrastructure setup. The number of multiplexes across India also proliferated. With a favorable scenario in the backdrop coupled with BookMyShows's promising business plan, investors were willing to put in their money in BookMyShow.
BookMyShow revenue 2020 has raised total funding of over $224.5 million in 6 rounds. In the latest round of funding raised in January 2019, Singapore-based Jungle Ventures invested an undisclosed amount in Bigtree Entertainment Singapore Pte Ltd. (owned by BookMyShow SEA).
BookMyShow started operating in South East Asia in 2016 with its headquarters in Indonesia. With funding from Jungle Ventures, the company is now planning to shift its headquarters to Singapore. As confirmed by BookMyShow SEA's CEO Kenneth Tan, the funds raised will be utilized to enhance the technological operations of BookMyShow SEA and to efficiently cater to the increasing number of users in the South East Asian region.
Sources say that before raising $100 million funding from 'TPG Growth' in July 2018, BookMyShow revenue 2020 was valued at about $750 million. With the boost from TPG Growth, BookMyShow now hovers at around $850 million.
BookMyShow recently announced release of its own video streaming platform. This launch can be a great success and a big revenue stream.
Jeenal Jain
FAQ
What is BookMyShow?
Bigtree Entertainment's BookMyShow is India's largest entertainment ticketing website. Headquartered in Mumbai, it is the only destination for movie and non-movie options like events, plays, and sports.
How much does Bookmyshow charge?
The portal charges Rs 19.82 as internet handling fees that comprise a booking fee of Rs 16.80 and Rs 3.02 Integrated GST (IGST) at 18%. Most of us don't mind paying this little extra cost to beat the queue, however, this Rs 16.80 is to be paid by BookMyShow to the bank and not by the customer.
How BookMyShow earns money?
BookMyShow makes money through the following sources:
- Ticketing revenue
- Non-ticketing revenue
Is refund available in BookMyShow?
Yes, Select 'Purchase History' and choose the booking you wish to cancel and tap on 'Cancel Booking' available on the bottom-right of the screen. Then Refund to BMS cash will be credited within 4 hours and in case of original payment source, funds will reflect within 5-7 working days.
Author: Devashish Shrivastava
Source : https://startuptalky.com/bookmyshow-revenue-model/
Date : 2021-06-16T23:50:00.000Z