Dataotuan special-report-on-movie-deals

Published: Mar. 6, 2012 Dataotuan.com

Movie Daily Deals – The Revenue Differentiator

How movies influence revenues, rankings & maybe even national ticket sales

© Dataotuan.com - blog.dataotuan.com 2

Table of Contents

The Intro

Movie Deal Vendors

Movie Deal Structure

The Trend

January 2012 Stats

Geographics

Sites Ranking With or Without

The Making of a Movie Deal

Summary

About Dataotuan

Contact

© Dataotuan.com - blog.dataotuan.com

Movie Deals – The Intro

Movies are a recurring event in the Chinese daily deal universe.

From the moment Dataotuan started tracking deals they have always been one of

the 3 biggest subcategories in the top deals overview.

In January 2012 alone, movie deals accounted for 13.4% of the total deal

revenue.

The new year seemed a good moment to dig deeper and find the story to what

makes movie deals so popular and on the face of it so lucrative to Deal websites.

The report will start with providing insights in the cooperation models as well as

how deals are structured. Next on the list will be looking deeper into the data we

retrieved and analyzed, followed by a real life example of a movie deal by

Meituan as well as “ The Making of a 55tuan Movie Deal”

Lastly we will put the movie deal in an Asian perspective.

3


There are two kind of vendors for Movie deals :

Deal sites cooperate with a specific cinema. Consumers can use the coupons

in the Cinema. (such as Wanda Cinemas, Stellar International Cineplex, etc.);

Deal sites cooperate with a ticket website. Consumers can book online to

watch a movie in different cinemas. (such as himovie.net, spider.com.cn, etc.)

Movie Deals – The Vendors

4


There are several ways that Movie deals are structured

Deal sites pre-buy tickets from a cinema which they resell as a deal.

Deal sites guarantee a minimum number of sales, and sell the tickets at the

agreed price.

Deal sites guarantee a minimum number of sales, and sell the tickets at the

price above the agreed price to keep some margin.

Deal sites sell the movie tickets as they sell the other service deals, and pay

according to the nr. sold to the cinema in the beginning, middle and end of the

valid time that users can redeem the deal.

Movie Deals – The Structure

Each deal is structured differently as it will depend on who holds the leverage.

Depending on the leverage, a deal site may keep some margin, charge some

service fee or what happens often, work for free and very likely spend money to get

and promote a movie deal as it’s a good way to acquire new users and reconnect

with existing users.

A sign that Movie deals may often be loss leaders is that the deal websites don’t

pay kickbacks for referrals on these deals.

5


Movie Deals – The Trends 1

13.4%

6.7%5.1%

4.7%5.2%

8.2%

11.0%

12.0%

6.0%8.1%5.5%

8.3%9.3%

15.8%

2.2%1.9%2.0%2.2%2.3%2.1%2.2%

Jun.2011 Aug.2011 Sep.2011 Oct.2011 Nov.2011 Dec.2011 Jan.2012

% Revenue % Nr.Sold % Nr.Deals

% of Movie Deals among Total

The number of movie deals has been around 2% of the total deals launched.

The percentages of the total deal revenue and nr. sold has always been high

with peaks during holiday seasons.

Since June 2011 the revenue % of movie deals among the total has been

hovering between 4.7% to 13.4%.

6


2,9811,937

1,408 1,052 1,663 1,164

2,783

80,166

51,174

29,62523,418

38,851 30,664

71,733

Jun.2011 Aug.2011 Sep.2011 Oct.2011 Nov.2011 Dec.2011 Jan.2012

Avg.Nr.Sold Avg. Revenue (Rmb)

Nr. Sold & Revenue of Movie Deals

The absolute number of average Nr. Sold and Revenue of movie deals

changed depending on the seasons with the Summer Holiday and New Year’s

Holiday standing out.

Movie Deals – The Trends 2

7


Movie Deals – January 2012 Stats

2,783

350

71,773

10,685

Average Nr. Sold/Deal Average Revenue（RMB）

Movie Total

Dining,

33.1%

Shopping,

18.4%

Others,

3.9%

Life,

12.6%

Leisure-

Others,

18.6%

Leisure-

Movie,

13.4%

Comparison of Movie Deals and Total Revenue Share of Movie Deals

In January 2012, Movie deals accounted for 13.4% of the total revenue.

The average unit price of a Movie deal was only a low 33.3 Rmb in January,

considering the average deal price was 142.1 Rmb.

The average Nr. Sold and Revenue per Movie deal is high.

They are 7-8 x more than the respective Nr. Sold and Revenue Averages.

8x

7x

8


Leisure-Movie

Dining-Hotpot/BBQ

Leisure-Travel

Life-Photograph

¥ 108.8

9399

¥ 130.4

4,049

¥ 147.3

15,314

¥ 147

35,634

¥ 179

13,993

¥ 116.4

10,372

¥ 174.4

6,869

• Average Price of Local Deals

• Nr. of Local Deals

Movie Deals – Regions

9


Beijing is the best place to find a movie deal. More deals are launched there

than in any other Tier 1 cities, though on the whole the % of Movie deals

revenue among total revenue in BJ is low.

Among the tier 2 cities, movie deals in Fuzhou take the highest percentage

among the total revenue, and Hangzhou the lowest.

Nr. Deals Nr. Sold Nr. Sold /

Deal

Average

Revenue

% among

Total Deals

% among

Total Revenue

Beijing 334 421,451 1,262 35,052.1 3.9% 7.5%

Shanghai 207 546,760 2,641 90,581.9 3.6% 12.2%

Guangzhou 92 331,740 3,606 108,112.3 2.0% 13.8%

Shenzhen 75 315,495 4,207 119,828.1 2.0% 14.8%

Wuhan 122 402,297 3,323 82,848.8 4.0% 19.4%

Fuzhou 40 234,975 5,876 149,668.4 1.7% 20.7%

Hangzhou 29 28,774 993 32,815.8 1.2% 2.8%

Chengdu 135 203,932 1,511 34,253.4 4.0% 9.6%

Total 2,698 7,150,519 2,783 71,733.2 2.2% 13.4%

Movie Deals in Tier 1 & Tier 2 Cities

Movie Deals – City Stats

10


Total Revenue

Ranking

Ranking exclude

movie revenue Deal Sites Name

Movie % among

Total Revenue

1 1 Meituan 19.3%

2 2 55tuan 10.1%

3 3 Lashou 3.9%

4 5 Dianping 11.2%

5 4 58tuan 3.5%

6 6 Nuomi 17.9%

7 7 Ftuan 3.8%

8 8 Juhuasuan 1.0%

9 9 Manzuo 13.0%

10 12 Didatuan 14.5%

Movie Deals – Sites Ranking With or Without

Revenue Ranking of Deal Sites inc. & exc. Movie Deals

Movie deals play a big role in total revenues, just in January Meituan’s Movie

revenue was at 19.3%, followed by Nuomi (17.9% ) and Didatuan (14.5%).

Ranking the Deal Sites on Revenue without movie deals has an effect as well.

11


In January, Meituan launched a super movie deal. Revenue of this single deal

was over 13 million rmb. More than 530,000 people bought this deal.

Meituan has always been active on movie deals. According to the PR director

of Meituan, Meituan has contributed 1% to the total box office in China in 2011.

Movie Deals – Meituan’ Record & Contribution

12


Movie Deals – 55tuan vs Meituan

In mid-January, 55tuan launched a movie deal, covering 35 cities, staying online

for more than one month.

It seems that 55tuan has made a lot of effort to set a revenue record for a movie

deal and beat Meituan.

13


The Making of a Movie Deal

1. A Time Machine

2. Some Magic Math

3. And Money

No sex though.......

14


Screenshot on

10/02/2012

Screenshot by

16/02/2012

Screenshot by

17/02/2012

The Making of a Movie Deal - Extend

Step 1: Extend the Deal time

55tuan extended the online time of this deal several times

It has to be noted that this is standard practice and most deal websites

apply this method to get more buyers

15


The Making of a Movie Deal - Math Step 2: Display Total Sales as Per City Sales.

The impression is given that the deal is extremely popular in each city,

even though the actual sales per city are much lower.

National Nr. Sold

showed on each

City Page

16


The Making of a Movie Deal - Price

Step 3: Offering the deal cheaper than it is.

In 7 cities, out of all the 35 cities, users have to pay an extra 5 or 10 Rmb

in the cinema.

Pay 5 or 10 Rmb

more when you

arrive the cinema.

17


The Result of the Movie Deal Competition

Meituan 55tuan

Online period 2012. 01. 09 – 01. 18 2012. 01. 16 - 02. 24

Online days 10 39

Price (Rmb) 23 / 26 / 32 26

Extra payment No Yes (in some cities)

Discount (off) 62% / 67% / 73% 78%

Cities covered 44 35

Total nr. sold 537,944 401,395

Total revenue

(Rmb) 13,000,000 + 10,436,000 +

18


13.4%

0.73%

0.62%

0.18%

0.28%

0.24%

0.01%

The movie

deals

phenomenon

seems very

special in

China,

compared to

the other

countries

Dataotuan

tracks.

Movie Deals - Asia % of Movie Deals among Total Revenue

19


Summary – Movie Deals Phenomenon

20

1. Movie deals play a special role in the daily deal market in China.

In January 2012, Movie deals accounted for 13.4% of the total revenue.

The average Nr. Sold and Revenue per Movie deal are 7-8 times more than

the total level.

The movie deals phenomenon seems unique to China, compared to the other

countries Dataotuan tracks.

2. The movie deals are the key for the deal sites to win more market share.

Movie ticket deals have a strong effect on revenue and even on the rankings

of some deal sites.

As the no.1 deal site, Meituan makes nearly 20% of its revenue from movies.

According to the PR director of Meituan, Meituan has contributed 1% to the

total box office in China in 2011.

3. The making of a movie deal with Chinese characteristics.

Extending online time repeatedly to increase the sales;

Showing the total Nr. Sold on the different city pages;

Making users pay extra in the cinema.

20


If you have a financial interest in the Group-buying Market, you want to

know:

What is the market status in general

Estimates of the Gross Revenue of the main Daily Deal websites.

Revenue trends for the main Daily Deal websites

Daily Deal Winners & Losers benchmark

Dataotuan – Investor Tool

Deal data including merchant, price, sold count, category, sub category

Pricing trends & Strategy

Category trends

Location trends

21

Dataotuan can help you with the Investor Tool – Investor Analytics

Contact [email protected]

We offer: Customized reports, merchant details, raw/live data & more.


If you are running a deal site, you want to know:

What is the market status in general and in a specific city

Are you doing better than the average

Should you adjust your pricing strategy according to the market trends

Should you change the products combination

Dataotuan – Sales Tools 1 (Website Analytics)

Who are your competitors

How competitive are they

What is their sales strategy

What is their pricing strategy

Dataotuan can help you with the Sales Tool – Deal Website Analytics


We offer:

Customized reports, merchant details, raw data, live data and more.

22

Dataotuan can help you with the Sales Tool – Deal Website Analytics




If you want to enter a new city you want to know;

What kind of deals are popular in this city

Who are the good merchants

Where can you find them

What is their daily deal history

Dataotuan – Sales Tools 2 (Merchants Analytics)

Who are your competitors

Which merchants are they cooperating with

What is their pricing strategy to generate a popular deal

Dataotuan can help you with the Sales Tool – Merchants Analytics



23


About Dataotuan.com

Dataotuan, a unique daily deal aggregator and analytics platform in China,

was started with 2 goals in mind.

1. To recommend the best deals to our users based on where they are, what they

like and when they want it as well as giving them tools to manage them

2. To analyze the deal data in order to find out what constitutes the best daily deal


Dataotuan Tracks & Collects

Dataotuan Tracks

*Dataotuan adds new Daily Deal websites on a regular basis based on quality and time of existence.

Deal Title

Price (Original, Current, Abs. And % Discount)

Number of Sold Deals

Category/Sub Category

Availability in Time

City, District, Latitude/Longitude

Weather & more

Deals & Revenue per District

Number of “real’ active Cities/Provinces

Number of Deals

Gross revenue Province,

City, District, Category, Sub Cat.

345 cities in Mainland China(*)

5000 – 10000 new deals every day

Dataotuan Collects

125 of the main Daily Deal Sites


Dataotuan Sells

Analysts and Investors

Estimates of the Gross Revenue of the main Daily Deal websites.

Revenue trends for the main Daily Deal websites

Detailed market analysis for all tier cities in Mainland China.

Detailed category analysis for provinces & 1st and 2nd tier cities

Daily Deal Winners & Losers benchmark

Daily Deal websites

Sales Tool to help Source & Re-target deals as well as explore new cities

Daily Deal Predictor

Competition Analysis

City Market Entry

SWOT of your website or the competition

Merchant Advisor: Select the most relevant daily deal website for your offer Help to decide discount & pricing etc based on Dataotuan data.


Dataotuan New Countries Announcements – 1

Dataotuan Singapore is out of its soft launch, see singapore.dataotuan.com

Dataotuan Malaysia is out of its soft launch, see malaysia.dataotuan.com

Dataotuan Philippines is out of its soft launch, see philippines.dataotuan.com

Dataotuan Taiwan is out of its soft launch, see taiwan.dataotuan.com

Dataotuan Australia is in soft launch, see australia.dataotuan.com

Dataotuan New Zealand is in soft launch, see newzealand.dataotuan.com

Dataotuan offers from now on also the sales & data products for

Singapore, Malaysia, The Philippines, Taiwan, Australia & NZ

Indonesia, Middle East & HK will be data ready soon.

If you like Dataotuan to track a specific country, please contact us


Dataotuan Map Announcements – 2 Dataotuan has Customizable Deal Maps for each Country


Dataotuan Mobile Announcements – 3

Dataotuan has Mobile, location aware HTML5 websites for each Country


The objective of this report is to offer insights into the Chinese Daily Deal industry.

Data are collected from the main Chinese deal websites and offer a reliable indication of the Chinese daily deal market

The daily deal websites that unfortunately are not included due to not providing correct data access (api)is groupon.cn.

QQ changed its business mode.It’s not a daily deal site anymore.So Dataotuan excluded QQ's data from 2011 Sep.

Please contact us if you have any questions/remarks related to this report.

Contact Dataotuan

We’re happy to help you, please contact us at:

Chinese +86 13761796676 Email: [email protected]

English +86 13801660890 Email: [email protected]

Read more on blog.dataotuan.com

Follow us on twitter.com/dataotuan

weibo.com/dataotuan

Subscribe to our Reports [email protected]

Dataotuan special-report-on-movie-deals

Technology

Transcript of Dataotuan special-report-on-movie-deals