Insight On Bookmyshow.com’s Revenue and Biz Model

This is something i read on www.watblog.com and was really impressed.
Thought this would be an interesting read for all.

Bookmyshow is growing at a 40% CAGR

Per month stats

• 7.5 million page views
• 1.5 million unique visitors
• 2 lakh transactions
• 6.5 lakh tickets sold

Avg transaction per person is about 3.4 tickets.

Now lets analyze the above numbers given the fact that bookmyshow can book to 200 multiplexes with about 800 screens across India.

Even if we take the average ticket amount to be 150 rupees (remember its a multiplex). Then the rough monthly transaction value if you calculate it comes up to about 10 crore or so a month (6.5 lakh x 150 per ticket).

But they obviously isn’t their revenues as most of it goes to the theatre owner. But bookmyshow charges a convenience charge of 15 rupees per ticket which is their revenue so in effect they make about 1 crore a month in gross revenue.

Now besides for the people expenses the other direct expense to this is the transaction fee charged by payment gateways which comes up to about 3 rupees. Hence one can say that their net revenue would be about 75 lakhs a month. That's about 9 crores a year.

Bookmyshow is one of the successes of e-commerce in India (besides for the obvious irctc). Even though the numbers are low they have gained huge market share as an aggregator and also because of the fact that they had pre-existing relationships with theatre owners due to their ERP solutions for movie tickets as Bigtree entertainment.

All in all this does suggest that there is immense scope in e-commerce provided you have the right business model and execution strategy in place.