Dataotuan special-report-on-movie-deals

Movie Daily Deals – The Revenue Differentiator
How movies influence revenues, rankings & maybe even national ticket sales

Dataotuan.com Published: Mar. 6, 2012

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 2

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.


Movie Deals – The Vendors
 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 Structure
 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.

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.


Movie Deals – The Trends 1
 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%.

% of Movie Deals among Total

15.8%
12.0%

11.0% 9.3% 13.4%
8.3% 8.1% 6.0%
8.2% 5.5%
6.7%
5.2% 5.1%
4.7%
2.2% 2.1% 2.3% 2.2% 2.0% 1.9% 2.2%

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

% Revenue % Nr.Sold % Nr.Deals


Movie Deals – The Trends 2
 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.

Nr. Sold & Revenue of Movie Deals

80,166 71,733

51,174
38,851 30,664
29,625
23,418
2,981
2,783
1,937 1,663
1,408 1,052 1,164

Jun.2011 Aug.2011 Sep.2011 Oct.2011 Nov.2011 Dec.2011 Jan.2012
Avg.Nr.Sold Avg. Revenue (Rmb)


Movie Deals – January 2012 Stats
 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.
Comparison of Movie Deals and Total Revenue Share of Movie Deals

71,773

Others,
Shopping, 3.9%
18.4% Dining,
33.1%
7x
2,783
Life,
12.6%
8x
10,685 Leisure- Leisure-
350 Others, Movie,
18.6% 13.4%
Average Nr. Sold/Deal Average Revenue（RMB）

Movie Total


Movie Deals – Regions

¥ 108.8
9399

¥ 130.4
4,049

¥ 147.3
15,314

¥ 147
35,634
¥ 174.4 ¥ 116.4
6,869 10,372

Leisure-Movie
Dining-Hotpot/BBQ
Leisure-Travel ¥ 179
13,993
Life-Photograph
• Average Price of Local Deals
• Nr. of Local Deals

Movie Deals – City Stats
 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.

Movie Deals in Tier 1 & Tier 2 Cities
Nr. Sold / Average % among % among
Nr. Deals Nr. Sold
Deal Revenue Total Deals 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 – Sites Ranking With or Without
 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.

Revenue Ranking of Deal Sites inc. & exc. Movie Deals
Total Revenue Ranking exclude Movie % among
Deal Sites Name
Ranking movie revenue 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 – Meituan’ Record & Contribution
 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 – 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.


The Making of a Movie Deal
1. A Time Machine
2. Some Magic Math
3. And Money

No sex though.......


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

Screenshot on
10/02/2012

Screenshot by
17/02/2012

Screenshot by
16/02/2012


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


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.


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


Movie Deals - Asia
 The movie % of Movie Deals among Total Revenue
deals 13.4%
phenomenon
seems very
special in
China, 0.73%
compared to
the other 0.24%
countries
Dataotuan
tracks.
0.28%

0.62% 0.01%

0.18%


Summary – Movie Deals Phenomenon
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.


Dataotuan – Investor Tool
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
 Deal data including merchant, price, sold count, category, sub category
 Pricing trends & Strategy
 Category trends
 Location trends

Dataotuan can help you with the Investor Tool – Investor Analytics
Contact wenli@dataotuan.com

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


Dataotuan – Sales Tools 1 (Website Analytics)
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

 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
Dataotuan can help you with the Sales Tool – Deal Website Analytics
We offer:
Customized reports, merchant details, raw data, live data and more.


Dataotuan – Sales Tools 2 (Merchants 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

 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



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 Collects

125 of the main Daily Deal Sites Number of Deals
Gross revenue Province,
City, District, Category, Sub Cat.

345 cities in Mainland China(*) Deals & Revenue per District
Number of “real’ active Cities/Provinces

5000 – 10000 new deals every day Deal Title
Price (Original, Current, Abs. And % Discount)
Number of Sold Deals
Category/Sub Category
Availability in Time
City, District, Latitude/Longitude
Weather & more

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


Dataotuan Sells
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

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

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


Contact Dataotuan

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

Chinese +86 13761796676 Email: wenli@dataotuan.com
English +86 13801660890 Email: gemme@dataotuan.com

Read more on blog.dataotuan.com
Follow us on twitter.com/dataotuan
weibo.com/dataotuan
Subscribe to our Reports reports@dataotuan.com

 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.


Dataotuan special-report-on-movie-deals

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