The free business model applied to the cinema industry
The free business model a complex point simplified
audience +– advertisers –+ cinema –+ studio Cinema exhibitor offers free entry to a particular segment (e.g. students [15-25] which is the most profitable audience segment) d More viewers would come in f nr. of admissions vastly increases
audience +– advertisers –+ cinema –+ studio More audience would come in + the exisitng audience would visit more frequently d Advertisers are searching for a captive audience + They are willing to pay more for more eyeballs
Most of the audience is represented by students d Better targeting (now only 15-25 yrs old would be in a screening room)
Free gives us more freedom f Possibilites for forming new products d e.g. “girls night out� for a particular female focused movie d This represnts 100/100 when targeting a young female demographics + the cinema is full (instead of beeing almost empty)
So far …
the business model doesn’t work yet …
audience +– advertisers –+ cinema –+ studio Absolutely more people come into a cinema d Absolutely more snacks & drinks are being sold
the model still doesn’t work yet ‌
audience +– advertisers –+ cinema –+ studio
Redefine the relationship between the cinema exhibitor and the distributor/studio
Redefine the relationship between: the cinema exhibitor and the distributor/studio d Distributor has to charge less per admission in order that the exhibitor can admit viewers for free, so that the exhibitor can pay the distributor for every admission d The distributor has to charge less in order to gain more (absolutely). d Only by colabotating of the two players the model can work.
audience +– advertisers –+ cinema –+ studio
Only by colabotating of the two players the model can work.
audience +– advertisers –+ cinema –+ studio By offering a better experience for free we have solved the motivation laying behind piracy. d We have solved the piracy problem for the first time from the users point of view.
audience +– advertisers –+ cinema –+ studio As a consequence: The more people would see a movie the bigger the chance that they will like it and as a consequence purchase the DVD (if it has the re-watchability factor).
The Model works. It generates more profits and benefits for all the involving parties.
Win-Win-Win-Win (situation)
Cinema exhibitor d Solved piracy problem d Larger profits
Advertisers Studio / distributor d d More audience of a Solved piracy certain demogr. problem d d Better targeting Larger profits
Audience d Better movie experience offered d Free
The Future is Free. (the future is now.)
Look around … Free … is already here ...
[free] ?????
Idea, concept, development by
Tadej Mursic tadej.mursic@gmail.com + 44 (0) 752 116 1634 (UK) + 386 (0) 31 388 996 (Slovenia)