The usage of online ticketing platforms are on the rise and there are several reasons behind it. The introduction of Jio has made Indians do a lot of their tasks online plus platforms like BookMyShow, Paytm have contributed to making things easier for users.
Online ticketing market before Paytm’s entry
Launched in 2007, things were going smoothly for BookMyShow before Paytm entered into online booking segment. BookMyShow was ruling this industry alone and was earning big profits. Paytm was also enjoying success with online recharges and e-commerce business. To extend its user base Paytm decided to launch new services such as bill payments and partnered with PVR Cinemas and started selling movie tickets.
Effect of Paytm on BookMyShow’s revenue
Bookmyshow had earned a total of Rs 236 crore in the financial year 2015-16, with an estimated growth of 85 percent from Rs 127.6 crore in 2014-15. While the total revenue of Rs 230 crore in the financial year 2017 is also not less but, if we compare its 30percent growth, the numbers tell a different story.
The growth of Paytm in online ticketing space
According to reports from Paytm, the company sold 25 million movie and events tickets until April 2017 and this number increased to 52 million by the end of 2017. Paytm is aiming to sell a total of 100 million tickets in 2018. To achieve this, it has invested money in ticketing platform named Insider.in. Alibaba is supporting Paytm with heavy investments. These numbers are causing a threat to BookMyShow and something needs to be done from their side very soon to avoid Paytm from becoming the leader in online ticketing segment. One thing that went in favour of Paytm is its already established userbase due to wallet business. A lot of users prefer Paytm over Bookmyshow as they are used to in making payments through Paytm.
BookMyShow trying its best
BookMyShow knows that the situation is alarming that is probably why it has increased investments in advertising. In 2017, the total money spent on advertising was Rs 473 crore which is almost double than Rs 248 crore in 2016. Plus, BookMyShow is making various deals to retain its position in the market. For making the payments easier, BookMyShow has tied up with Amazon Pay, WhatsApp and many other ticketing platforms.
Both these companies are famous for the offers and discounts that they provide for buying tickets but this strategy is not going to work for a long time and new ideas should be implemented as the competition is really getting serious and other companies are also eyeing this market.
It will be very interesting to see the approach of these companies in next few months.