Our business model are clean and transparent so we can create the trust from our users. We charge a 12% service fee from venue owner, and 10% from filmmakers. So for example, Venue ABC is booked by Film Company 123 for $1,000. The film company will pay $1,100 to us, and we will give $880 to venue owner. So for scenario like this, we earn $220 for this transaction.
As this is a film-tech company, our model are very scale-able. It can be easily expanded to other countries and cities, and even expand to other sector just by replicating our current model. As for sustainability, we do not require a high headcount as most of the work are already done by the automation processes. Our main headcount are more for marketing work and recruitment of venue with of course business development.
As for cash-flow wise, its all done automatically via our system. As a CEO, I will also be the one to keep a look out and manage the cash-flow for marketing and other purposes to generate a higher returns and stabilize the revenue stream.
Facilities
Our competition landscape are venue agencies. The difference between us and them are automation which reduces time and cost. Our comprehensive system are able to provide a entire eco-system from contacting venue owner via our messaging system, to negotiation on the price, booking, payment, and even dispute. The users will never have to leave the platform.
Unlike our competitors, they are still using the traditional way of communicating with their filmmakers and venue owner where if they will require filmmakers to contact them via call or email and they will then reach out to the venue owner before they can get back to the filmmakers on pricing, availability, and even any form of negotiation. This entire process can takes 1-2 days or longer, whereby our system can get things done within a matter of minutes or hours. And without the need of our staff to interfere, we can pass on the savings to our end-users where the traditional venue agencies will be straggling to keep up with their cost and passing that to end-user. At the same time, if they suddenly have a high volume of booking enquiries, they will face another challenge to keep up with that whereby our system will automate the entire process without a need for us to worry.
On top of all these, we do also have a few measures in place to protect both the filmmakers and venue owner. For example, we have a ID Verification System where our system will verify all users to make sure they are a real person and their booking are for legitimate reasons. We also have a Security Fee system to protect venue owner from having to deal with accidental damages to their venue during the filming. Lastly, our dispute system will keep our entire community in place.
Competition
We are mainly targeting the media and entertainment industry.
The rise of video isn’t slowing down. From producing videos to distributing and promoting them, the U.S. digital video marketing industry alone reaches $135 billion in 2017, according to a new study by mobile video platform Magisto. The 2017 estimate -- which includes the cost of video capturing, creation, hosting, distribution, analytics and staffing -- is sizeable and would make video marketing nearly as large of a market as digital and television advertising combined. By contrast, advertisers are expected to spend $83 billion on digital ads and $71 billion on TV commercials (a total of $154 billion) in the U.S.
The market demand is already there, waiting for a new player to taking over the traditional way of getting work done. With proper advertising on both Google and Facebook alone, we estimate we can capture about 25% of the industry users to join our platform per city. We are also working on to reach out to film schools where film students can now spend lesser time focusing on their project then spending 50% of their time finding a good location.
As we do not require the traditional way of advertising like TV Ads, or billboard Ads, we are able to drastically cut our marketing spending and still reach out to the right people and capture the market.
Expansion Potential