14 Sept 2016
Movie Industry Explores Online Ticketing Platform Profit Model
Online spending has become a habit. The rapid growth of online ticketing platforms has turned these into powerful engines for box office increase. However, ticket sales alone cannot generate profit. After subsidy reduction, discounted tickets sold by many cinemas to members are actually cheaper than tickets sold by ticketing platforms. In order to explore a new profit model, many platforms have extended their business to movie distribution, production, big data analysis and other areas in their pan-entertainment strategy.
Online ticketing platforms are already extending their business to movie distribution and marketing in diverse fields, such as advance publicity, advance booking and ticket subsidies. Some platforms are exploring more types of services through big data analytics.
In order to explore a suitable profit model for themselves, many platforms are expanding into movie distribution, production, big data analytics and other sectors in their pan-entertainment strategy. For example, speaking at a forum on the services ecosystem held during the Baidu World conference on 1 September, a senior executive of Baidu Nuomi Pictures discussed how Baidu’s big data technology can contribute to the upstream and downstream sectors of the movie industry in areas such as film investment, publicity and distribution, box office predictions, smart cinema management and user experience upgrade.
Baidu Big Data is made up of 600 million-plus Baidu user profiles and covers information on searches, location-based services (LBS), apps, O2O and social media generated through use of internet and mobile internet devices. Baidu Nuomi Pictures has more than 80 million ticket buying users and its database covers the age, gender, geographical location, zodiac information, viewing frequency and preference of users.
Following the rapid growth of the movie market, cinemas in the downstream sectors are trying to attract larger audiences through their own expansion and improvement of services. Besides “hard targets” such as the importation of advanced technology and equipment, cinemas are also devoting efforts to upgrade the “soft power” of their operational efficiency.