This document summarizes a business presentation for a social news site company. The company has grown to over 12,000 registered members and 2.5 million monthly page views within 2 years. It is pursuing a large market opportunity in the entertainment and media industry estimated at $400-800 million USD. The company has an experienced management team and is profitable with key business deals in place.
5. Market Opportunity Source: PricewaterhouseCoopers, Wall Street, eMarketer Market opportunity (sample 2) 2006-07 2010-11 Global advertising $55 billion $81.1 billion US online advertising $20 billion $36 billion Local classifieds $3.3 billion $12 billion People reading news online 80 Million (US) 250 Million (US) Broadband subscribers 300 million 540 million Wireless subscribers 1.1 billion 3.4 billion
6. Business overview 2005-06 ABC media Pvt. Ltd. Current No. of Markets Markets No. of employees Monthly Unique visitors Signup users Paid users % conversion rate from Visitors to Signups Annual Revenue rate ARPU Visitor Customer Acquisition Cost Paid Customer Acquisition Cost Projects (end of 2009) No. of Markets Markets No. of employees Monthly Unique visitors Signup users Paid users % conversion rate from Visitors to Signups Annual Revenue rate ARPU Visitor Customer Acquisition Cost Paid Customer Acquisition Cost
7. Key metrics 2005-06 ABC media Pvt. Ltd. Subscribers Churn rate Customer acquisition cost Content Total Number of Titles Percentage titles active in last 3 month DVD turn around time Operational scale Average DVDs delivered per day Economics Revenue per rental Customer care costs per rental Fulfillment cost per rental Total direct operational cost per rental Contribution Margin Contribution Margin % Capacity utilization Customer care capacity utilization Field Team Capacity utilization, current delivery process Packing Team Capacity utilization
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10. 2005-06 ABC media Pvt. Ltd. Pain points – Movie rentals Quality Bad quality discs. Pirated discs Service Low quality customer service Selection Limited titles to choose from Availability Unavailability of new/popular movies Access Hard to find. Long drives. Parking issues Identification Hard to identify movies I want to watch Economy DVD rentals ranging from Rs 60-100 per day. Late Fees Extra
11. Business Model 2005-06 ABC media Pvt. Ltd. C U S T O M E R S Technology Content Acquisition Customer Acquisition / Marketing Product Mix Customer Care (Web, SMS, Phone, retail stores) Fulfillment
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14. Competitors Competition Analysis User generated content YES YES YES YES YES YES Main stream media content YES YES Citizen Journalism YES YES YES YES YES YES Voting on Stories and Comments YES YES YES YES APIs for third party developers YES Localization YES YES Personalization YES YES Revenue Sharing YES YES VC funded YES YES YES YES YES Funding Alexa Rank 2,638 14,573 6,494 11,683 52,636 39,642
18. 2005-06 ABC media Pvt. Ltd. Per rental Economics Scenario 1 - Now Scenario 2 - PreVC Scenario 3 - Steady State Revenues Revenue per Rental Customer Care Customer Care Costs per Rental Fulfillment Forward Logistic Cost per Rental Reverse Logistic Cost per Rental Cover Contribution Margins New Hit Movies Purchase cost End of life value Content Cost to be covered Number of Rentals for Break even Expected Rentals Avg turn around time (days) Demand life Rentals Content Cost/Rental Gross Margin Gross Margin % Other movies (with consistent Demand) Purchase cost Content Cost to be covered Number of Rentals for Break even
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