India’s Fandango Bookmyshow (BMS) is one of the earliest entrants in the internet space, the company launched its online ticketing platform www.bookmyshow.com in 2007 and subsequently launched the Mobile App as well. Bookmyshow has ~90% market share in the online movie ticketing segment in India.
In FY15, 4bn movie tickets (in ~10,000 screens) were sold in India. In its addressable market of 500mn tickets (2,700 screens), BMS sold 50mn tickets in FY 2015 [Apr-2014 to March-2015]. ~100% of the total available movie tickets are accessible on BMS’ platform. The company aims to increase its penetration in addressable markets from the current 10% to 25%. Simultaneously, eyeing tie-ups with more exhibitors, BMS plans to increase its addressable market to 1.5bn tickets over the next few years. While BMS would have ideally preferred a fragmented multiplex industry, it is not too perturbed by the recent consolidation seen in the space.
60% of Bookmyshow – BMS’ revenues come from online movie ticketing, 25% from sporting events, 5% from other live events and the rest from advertising and its software services company Vista. While trying to keep advertising as unobtrusive as possible, the company aims to increase the contribution of ad revenues to 30-40% in the next 5 years. Sports and events enjoy a higher margin vis-a-vis movie ticketing and are hence lucrative.
BMS takes a commission of Rs20 per movie ticket. 20% of this commission is paid to the payment gateway. Overall, the company enjoys a 50% gross margin. The company does get impacted by weaker box office performance. 60% of bookings on BookMyShow are through the mobile app and the remaining 40% through its website.
The Indian internet space would continue to enjoy an accelerated growth phase over the next decade and BookMyShow is all set to Grab bigger slice of Box Office release.