Note: The following is an example DApp idea proposal and is intended for instructional purpose only. It is not complete; it is a basic version of what is expected from the proposals.
Purpose
CinemaTix aims to provide a platform where cinemas can auction off tickets for non-peak movie showings, maximising value for cinemas while widening viewing access to more consumers.
Description
Problem
According to the British Film Institute (BFI), the average price of a cinema ticket in 1988 was £2.30. Today the average ticket costs between £8.40 for daytime showings and £9.80 for peak times. These prices can be over £20 for major releases or 3D films [1]. While these prices make sense for sold out movies or opening nights, they are difficult to justify for an empty theatre, especially when concession revenue rose by 8.7% last year, and revenue from ticket sales fell by 4.5% [2]. We’ve all paid high movie prices to find out we're the only group watching a movie.
Solution
CinemaTix is an app that would allow cinemas to auction off tickets for non-peak showings. Cinema goers could then bid on those tickets, allowing them to be sold for closer to market rates.
The principle is similar to that of dynamic ticket pricing, a ticket pricing methodology adopted by several US Sports Leagues and Stadiums in order to increase revenue from declines in ticket sales. In certain cases, teams were able to increase single-game ticket revenues by double-digit percentages [3]. As the concept proved successful in sports ticket markets, we feel that a similar implementation with cinema tickets would yield equally successful results.
This system would increase access to viewers who might not want to shell out large sums of money and make going to the movies more affordable to larger families. It would also drive value for cinemas, by increasing both traffic to the concessions lines and revenue from adverts, allowing them to realign focus to higher-growth revenue sources.
How it Works
CinemaTix would leverage the Aventus protocol’s secret bidding facility in the auction pricing mechanism for primary market ticket sales. A cinema will have full control over how many seats are offered in the auction and for what films/showings. They also would be able to set a (secret) minimum valid bid. The minimum valid bid would prevent tickets from being sold below cost, and would help to preserve the integrity of movie pricing. When the bidding period ends, the winning bids are chosen, and the result of your bid is revealed. The secrecy of the bidding facility incentivises moviegoers to bid what they feel is a fair-market price, as they will not have access to information about other bids. Lack of trust will prevent collusion through other channels, as bidders are in direct competition for the auctioned seats.
Cinemas could decide whether to apply Cinematix on an ad hoc basis, or through pre-set parameters based on seats sold, weeks since release, or time until viewing. Ultimately, this solution would democratise the movie going experience and close the gap between ticket prices and their true market value.
Usage of the Aventus Protocol and Overall Ecosystem
Underlying this system will be the Aventus protocol; CinemaTix would leverage the primary market auctioning system for the ticket bidding and sale system. Since CinemaTix would be targeting a different user base to the sports and music event market that Aventus is focusing on first, it would benefit the ecosystem by driving demand for AVT and spreading its adoption through a different demographic: cinema goers.
CinemaTix would also use the Aventus services layer for Ethereum account management and payment processing (AVT/ETH to fiat conversions), as most of our target demographic will have minimal crypto experience and will thus need to pay in credit card.
Since touting cinema tickets is not a huge problem, and cinemas might only allocate a portion of their inventory to CinemaTix, we will only use a basic version of the full Aventus access control system, since we will need to plug into their existing system.
Monetisation
CinemaTix has three major sources of revenue:
Taking a small commission from all auctioned tickets to compensate for the facilitation of the inventory allocation, modified access control system, and general auctioning facility.
A paid analytics platform for cinemas to view and understand the demographics that are bidding on their tickets. Note, CinemaTix will provide incentives to users who give cinemas access to different types of demographic data about themselves using products like UPort.
A paid white-label version of the entire technology stack for cinemas to auction tickets directly on their website.
Customers and Acquisition Strategy
CinemaTix customers are on one hand, cinemas, and on the other, cinema-goers. In terms of strategy, CinemaTix will initially sell the white-label solution to cinemas for use on their own websites and strike deals where the inventory can also be auctioned through the CinemaTix app itself.
The inventory on the CinemaTix website, and a strategy where users gain a small portion of the CinemaTix auctioned ticket fee for bidding on the inventory through the CinemaTix platform, will drive more users to the app and therefore attract more cinemas.
Note: The following is an example DApp idea proposal and is intended for instructional purpose only. It is not complete; it is a basic version of what is expected from the proposals.
Purpose
CinemaTix aims to provide a platform where cinemas can auction off tickets for non-peak movie showings, maximising value for cinemas while widening viewing access to more consumers.
Description
Problem
According to the British Film Institute (BFI), the average price of a cinema ticket in 1988 was £2.30. Today the average ticket costs between £8.40 for daytime showings and £9.80 for peak times. These prices can be over £20 for major releases or 3D films [1]. While these prices make sense for sold out movies or opening nights, they are difficult to justify for an empty theatre, especially when concession revenue rose by 8.7% last year, and revenue from ticket sales fell by 4.5% [2]. We’ve all paid high movie prices to find out we're the only group watching a movie.
Solution
CinemaTix is an app that would allow cinemas to auction off tickets for non-peak showings. Cinema goers could then bid on those tickets, allowing them to be sold for closer to market rates.
The principle is similar to that of dynamic ticket pricing, a ticket pricing methodology adopted by several US Sports Leagues and Stadiums in order to increase revenue from declines in ticket sales. In certain cases, teams were able to increase single-game ticket revenues by double-digit percentages [3]. As the concept proved successful in sports ticket markets, we feel that a similar implementation with cinema tickets would yield equally successful results.
This system would increase access to viewers who might not want to shell out large sums of money and make going to the movies more affordable to larger families. It would also drive value for cinemas, by increasing both traffic to the concessions lines and revenue from adverts, allowing them to realign focus to higher-growth revenue sources.
How it Works
CinemaTix would leverage the Aventus protocol’s secret bidding facility in the auction pricing mechanism for primary market ticket sales. A cinema will have full control over how many seats are offered in the auction and for what films/showings. They also would be able to set a (secret) minimum valid bid. The minimum valid bid would prevent tickets from being sold below cost, and would help to preserve the integrity of movie pricing. When the bidding period ends, the winning bids are chosen, and the result of your bid is revealed. The secrecy of the bidding facility incentivises moviegoers to bid what they feel is a fair-market price, as they will not have access to information about other bids. Lack of trust will prevent collusion through other channels, as bidders are in direct competition for the auctioned seats.
Cinemas could decide whether to apply Cinematix on an ad hoc basis, or through pre-set parameters based on seats sold, weeks since release, or time until viewing. Ultimately, this solution would democratise the movie going experience and close the gap between ticket prices and their true market value.
Usage of the Aventus Protocol and Overall Ecosystem
Underlying this system will be the Aventus protocol; CinemaTix would leverage the primary market auctioning system for the ticket bidding and sale system. Since CinemaTix would be targeting a different user base to the sports and music event market that Aventus is focusing on first, it would benefit the ecosystem by driving demand for AVT and spreading its adoption through a different demographic: cinema goers.
CinemaTix would also use the Aventus services layer for Ethereum account management and payment processing (AVT/ETH to fiat conversions), as most of our target demographic will have minimal crypto experience and will thus need to pay in credit card.
Since touting cinema tickets is not a huge problem, and cinemas might only allocate a portion of their inventory to CinemaTix, we will only use a basic version of the full Aventus access control system, since we will need to plug into their existing system.
Monetisation
CinemaTix has three major sources of revenue:
Taking a small commission from all auctioned tickets to compensate for the facilitation of the inventory allocation, modified access control system, and general auctioning facility.
A paid analytics platform for cinemas to view and understand the demographics that are bidding on their tickets. Note, CinemaTix will provide incentives to users who give cinemas access to different types of demographic data about themselves using products like UPort.
A paid white-label version of the entire technology stack for cinemas to auction tickets directly on their website.
Customers and Acquisition Strategy
CinemaTix customers are on one hand, cinemas, and on the other, cinema-goers. In terms of strategy, CinemaTix will initially sell the white-label solution to cinemas for use on their own websites and strike deals where the inventory can also be auctioned through the CinemaTix app itself.
The inventory on the CinemaTix website, and a strategy where users gain a small portion of the CinemaTix auctioned ticket fee for bidding on the inventory through the CinemaTix platform, will drive more users to the app and therefore attract more cinemas.
References
[1] “Why a trip to the cinema can cost up to £100” http://www.telegraph.co.uk/films/2016/04/19/why-a-trip-to-the-cinema-can-cost-up-to-100/ [2] “Movie Concessions Drive AMC Earnings”, http://uk.businessinsider.com/movie-concessions-drive-amc-earnings-2015-2 [3] “Dynamic ticket pricing makes successful debut in NFL” http://www.sportsbusinessdaily.com/Journal/Issues/2015/10/26/Leagues-and-Governing-Bodies/NFL-dynamic.aspx