PVR and Paytm announced their online movie ticketing tie up with the debut of Paytm’s new vertical – movie tickets on its e-commerce platform.
Present at the event were Vijay Shekhar Sharma, Founder and CEO of Paytm, Sanjeev Kumar Bijli, Joint Managing Director of PVR and Kamal Gianchandani, Chief of Strategy, PVR. The important aspect of this tie up is that PVR is currently selling 1/3 of its tickets through the online channels and plans to take it up to 60% and this tie-up will help them speed up the process.
“Our journey started as Paytm’s parent company One97 Communications Ltd in 2003-2004, when PVR had launched first IVR and SMS based ticket query system and as One97 we were the first ones to do that,” said Sharma.
Elaborating further on the tie with PVR he added, “As Paytm our mission is to bring offline consumption to online and treat it as O2O commerce. Even though we were the 30th player in the mobile recharge and wallet category, but with our extraordinary effort we moved our offline activities online and that is our intention for this deal too. We are not looking at adding incremental value here; we are looking to add a quantum leap in the number of tickets that can be booked online. I believe that digital distributions will create far more value proposition for movies as every theatre company will be able to get extra revenues.”
Paytm and PVR are looking for a relationship where every offline activity associated with a movie experience can be taken online to make the process faster and smoother.
Incidentally, Paytm is the first e-commerce platform in the country to have movie tickets as a category and PVR is the first chain to partner with this category.
Speaking about the marketing strategy to get customers online, Sharma stated, “We would obviously try to reach out to the audience online and through our own website and app which witnesses heavy traffic on a day to day basis. But the more important thing that we need to look at is how we add a new universe of people who have not transacted online yet, and that is where we would like to focus through online and offline media.”
“If there is anyone who knows marketing, it is Paytm,” remarked Bijli.
Paytm plans to use their most favourite tool – cashback, to promote this deal. So in that case when a customer purchases a ticket from Paytm, they will be offered cashback and they will play aggressive on this point. “Till the time there is margin in this country, cashbacks will thrive,” said Sharma.
Elaborating how Paytm has an advantage over the existing BookMyShow model apart from the cashbacks, Sharma added, “The edge of one platform over other can be experience and the volume. But what is different that Paytm can do is that we can potentially bring a new universe of customers. BookMyShow has captive customers but there are customers who are transacting online but not moving to cinema booking, we through Paytm plan to manoeuvre those customers to use that booking,” said Sharma.
The intention is not about bookmyshow Vs Paytm, but in getting a new universe of customers online. The revenue model being followed for this feature is simple. When the consumer books a ticket; Paytm gets a percentage of that share and the agenda is to give customers an amazing and seamless experience in movie ticket booking and to get those who are offline, online.
“Our end goal is to give customers convenience and with these associations and collaborations it becomes an extremely simple and seamless way to book tickets and watch a film,” said Bijli.
Speaking about the tie up, Gianchandani said, “We don’t think it is about competition between bookmyshow and Paytm. PVR chain is at 33% in terms of online penetration and this can easily go up to 60% over the next 24 months. It is a healthy equation that we are getting into. It is not about the competition, it is about co-existing.”