Paytm Is Getting Into BookMyShow Space, To Launch Online Movie, Event Ticketing Marketplace!
When it comes to online movie & event ticketing business, BookMyShow has a near monopoly in India. According to a recent ASSOCHAM-Deloitte report, BookMyShow commands 90 percent market share in movie ticketing business. But, that may not be the case for too long.
According to a ET report, Paytm founder Vijay Shekhar Sharma has revealed that they are creating a marketplace for entertainment tickets, which will additionally give deals and offers to customers on the ticket purchases. He told ET, “All the cinema chains can become sellers on the platform and can experiment with various pricing options and deals”.
So, Paytm business model will be slightly different to that of BookMyShow. While BookMyShow works by forging partnerships with multiplex and theatre chains, Paytm will work as a marketplace, where anyone can come and offer their tickets. It will operate as a marketplace where a multiplex or theatre will be the seller.
From buyer’s perspective process of buying tickets might not be too different. However, they may get certain advantages by booking with Paytm marketplace in form of various coupons, offers and deals.
Also, BookMyShow ticket rates are standard (with high conevnience charges) – whereas in case of Paytm a theatre or multiplex can choose to offer discounts on certain tickets or then offer popcorn and other goodies like free valet parking.
In terms of BookMyShow competition, Sharma told ET that he does not see any conflict. Paytm being a marketplace, can also have BookMyShow as one of the ticket sellers.
Obviously, BookMyShow may not want that as it will surely affect their margins. They will be competing with others on the platform and hence may not be able to command same kind of rates and commissions as they do on their platform.
Also, most multiplex chains currently allot bulk of tickets to BookMyShow to sell, but, with Paytm coming into picture, the tickets may get divided between players.
Movie Ticketing business in India is a Rs. 3000 crore business and online booking accounts for about 25 percent of them. With Smartphone numbers growing fast in India, the share of mobile and online bookings of tickets is increasing at great pace as well.
According to reports, Paytm is planning to launch their web based version of marketplace this week and will soon launch mobile apps on different platforms.
We will bring you more on this as soon as the marketplace is launched!