After conquering the movie ticket market in India, the online ticketing portal has now set eyes on achieving another business domain which is its non-movie ticketing business.
The e-ticketing portal wants to grow its non-movie business exponentially in the coming 3 years.
Scalability and high-profit margins in the live event business make it a very attractive opportunity for companies like Bookmyshow.
Online ticketing company Bookmyshow has revolutionized the way tickets are booked in India. It has made the previously cumbersome process smoother and more accessible to the general populace. Today almost 80% of the tickets booked in a cinema theatre are booked via Bookmyshow. After conquering the movie ticket market in India, the online ticketing portal has now set eyes on achieving another business domain which is its non-movie ticketing business.
Currently, movie tickets bring up to 60% of the total revenue generated by Bookmyshow. The rest comes from ticketing live events such as concerts, plays, sporting events etc. Ashish Hemrajani, the founder of Bookmyshow has said that any outdoor experience wanted by a particular customer like play, movies or any live events, the tickets will be available on Bookmyshow.
The e-ticketing portal wants to grow its non-movie business exponentially in the coming 3 years. It aims that 50% of their revenue to be generated from live events. Scalability and high- profit margins in the live event business make it a very attractive opportunity for companies like Bookmyshow.
In 2017, the e-ticketing company had partnered with international businesses so as to bring A list events such as the Ed Sheeran concert and the Aladdin musical to India. This received an immense response from the public. It also hosted the premiere for the show Bazzar of the art entertainment firm Cirque Du Soleil in India. The company also made tickets for international sporting and entertainment events available in India. These tickets are usually sold at a 40-50% higher rate than domestic events, thus generating immense revenues for the companies.
However, there are two major hurdles faced by the live events business in India. Firstly, it is taxed heavily at over 28%. The second is that the infrastructure for organized live events on a large scale in India is severely lacking. Hence more investment is required to organize these events.
This is where brand partners come into play. Getting one or two brand partners on board help make things economically viable. They help to get the revenue and share some of the marketing cost required. For the Cirque Du Soleil, Bookmyshow partnered with Citibank, PVR, MTDC and Red FM. The e-ticketing company is hoping to get more such partners on board for its live events. Currently, the company offers four categories to its brand partners- powered by, co-powered by, presented by and associate sponsors. They are looking to form long term associations with these brands as there has to be persistent and consistent marketing for live events.
The growth of Bookmyshow in movie ticketing is restricted because of infrastructure issues and inflation. Hence it makes perfect sense for them to move on to other categories which offer great growth and higher profit margins.
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