Profitable dynamics 2016-02-29-c (en)
- 1. Profitable dynamics. dynamics during the crisis? The crisis - the time for a smart investments
- 2. If you decide to read this presentation, you agree that all listed and used in its data and calculations are private opinion, and can not be the basis for legal disputes and prosecution
- 3. The global entertainment market1
- 4. The global turnover of the film industry and video games is growing even in a crisis
- 5. What do we produce for this market? And most importantly - why?
- 6. How to increase the incomes of the cinema?2 + ?
- 8. Dynamic seat DreamSim is created for this
- 9. A little about the DreamSeat Only for 3500 EUR* Power 48V/220V, 300W The slope of the axes to 30⁰ MAX angular velocity 100⁰/сек Dimensions (L*W*H) 100*80*117 sm * Rates are for a minimum batch of 30 chairs. Individual remote control
- 10. The business model for DreamSeats Base seats Side angle of the tilt for the DreamSeat 5 10 5 10 5 10 18 The number of films/year for the DreamSeat 25 30 25 30 25 30 35 The base number of seats 35 52 30 45 30 40 35 The basic ticket price (EUR) 6 7 8 9 9 10 15 Basic occupancy of the cinema (%) 15 12 15 12 17 11 14 The basic quantity of spectators per year 11 498 13 666 9 855 11 826 11 169 9 636 10 731 Basic Box Office (EUR) 68 985 95 659 78 840 106 434 100 521 96 360 160 965 Cost of 1 chair DreamSeat (EUR) 3 500 3 500 3 700 3 600 4 000 3 900 3 950 Initial investment (EUR) 87 500 133 000 96 200 140 400 92 000 120 900 98 750 Number of seats DreamSeat 25 38 26 39 23 31 25 The added value of the ticket (%) 50 40 60 50 60 50 40 The added value of the ticket (EUR) 3 2,8 4,8 4,5 5,4 5 6 Occupancy of seats DreamSeat (%) 35 30 40 35 40 30 25 Spectators per year at seats DreamSeat 13 125 20 520 15 600 24 570 13 800 16 740 13 125 New Box Office (EUR) 118 125 201 096 199 680 331 695 198 720 251 100 275 625 The cost of tracks for films per year (EUR) 5 000 6 000 5 000 6 000 5 000 6 000 7 000 The costs of electricity per year (EUR) 1 243 1 598 1 362 1 793 1 276 1 417 1 243 EBITDA at first year (EUR) 42 897 97 839 114 478 217 468 91 923 147 323 106 417 Payback period (years) 2,04 1,36 0,84 0,65 1,00 0,82 0,93 Standart Medium VIP
- 11. What is different the DreamSeat from the other options? What to choose?
- 12. DreamSeat or fixed seat? Alternative cinema equipment Usual 2D Dream Seat The minimum volume of the conversion - a row Minimum number of seats for conversion 320 30 The cost of conversion (EUR) - 105 000 The basic ticket price (EUR) 3 6,0 6,0 The added value of the ticket (EUR) 0,0 2 The added value of the ticket (%) 0% 33% New ticket price (EUR) 6 8 Occupancy of the seats (%) 15% 35% Converted area / Full area 0% 15% Number of spectators per year at converted area 105 120 22 995 Total number of spectators per year 105 120 112 347 Calculated Box Office (EUR) 630 720 720 072 Growth of Box-Office (EUR) 0 89 352 Possible extra costs per year (estimated, EUR) 0 10 400 Extra costs for electricity per year (EUR) 0 3 219 Extras EBITDA in the first year (EUR) 0 75 733 Payback period (years) - 1,39
- 13. DreamSeat or fixed seat? In result DreamSeat Fixed seat Drive! Additional sensations No From 4 EUR/day Additional revenue 0 25% - 40% Occupancy of the seats 10% - 17% From 8 months Payback ∞
- 14. DreamSeat or Platform? Alternative cinema equipment Platform х4 Dream Seat The minimum volume of the conversion a hall a row Minimum number of seats for conversion 180 30 The cost of conversion (EUR) 4 862 069 105 000 The number of films/year (approx.) 3 31 52 The basic ticket price (EUR) 6,0 6,0 The added value of the ticket (EUR) 2,8 2,8 The added value of the ticket (%) 47% 47% New ticket price (EUR) 8,8 8,8 Occupancy of the seats (%) 23% 35% Converted area / Full area 100% 15% Number of spectators per year at conv. area 90 666 22 995 Total number of spectators per year 90 666 112 347 Calculated Box Office (EUR) 797 861 738 468 Growth of Box-Office (EUR) 167 141 107 748 Possible extra costs per year (estimated, EUR) 9 300 10 400 Extra costs for electricity per year (EUR) 42 311 3 219 Extras EBITDA in the first year (EUR) 115 530 94 129 Payback period (years) 7,46 1,12
- 15. DreamSeat or Platform? In result DreamSeat Platform х4 This is my armchair. Under my control. Sensations of spectator Airport shuttle From 1 seat to full hall The size of conversion Full hall From 10 000 EUR Minimal investment From 860 000 EUR 4 From 8 months Payback From 7,5 years
- 16. DreamSeat or competitors? Alternative cinema equipment Any Name Dream Seat The minimum volume of the conversion a row a row Minimum number of seats for conversion 30 30 The cost of conversion (EUR) 4 204 720 105 000 The number of films/year (approx.) 3 22 52 The basic ticket price (EUR) 6,0 6,0 The added value of the ticket (EUR) 4,5 4,5 The added value of the ticket (%) 75% 75% New ticket price (EUR) 10,5 10,5 Occupancy of the seats (%) 35% 35% Converted area / Full area 15% 15% Number of spectators per year at conv. area 22 995 22 995 Total number of spectators per year 112 347 112 347 Calculated Box Office (EUR) 777 560 777 560 Growth of Box-Office (EUR) 146 840 146 840 Possible extra costs per year (estimated, EUR) 6 600 10 400 Extra costs for electricity per year (EUR) 3 219 3 219 Extras EBITDA in the first year (EUR) 137 020 133 220 Payback period (years) 1,49 0,79
- 17. DreamSeat or competitors? In result DreamSeat AnyName Large amplitude and velocity Mobility of the seat Less the dynamic potential Economy of 50% Cost More expensive in 2 times Economy from 40% Cost of 1 movie track More expensive From 8 months Payback From 7,5 years
- 18. DreamSeat or IMAX? Alternative cinema equipment IMAX Dream Seat The minimum volume of the conversion зал ряд Minimum number of seats for conversion 250 30 The cost of conversion (EUR) 5 1 300 000 105 000 The number of films/year (approx.) 6 27 52 The basic ticket price (EUR) 6,0 6,0 The added value of the ticket (EUR) 4 4 The added value of the ticket (%) 67% 67% New ticket price (EUR) 10 10 Occupancy of the seats (%) 22% 35% Converted area / Full area 78% 15% Number of spectators per year at conv. area 118 260 22 995 Total number of spectators per year 118 260 112 347 Calculated Box Office (EUR) 1 182 600 766 062 Growth of Box-Office (EUR) 551 880 135 342 Possible extra costs per year (estimated, EUR) 5 152 859 10 400 Extra costs for electicity per year (EUR) 8 176 3 219 Extras EBITDA in the first year (EUR) 390 845 121 723 Payback period (years) 3,33 0,86
- 19. DreamSeat or IMAX? In result DreamSeat IMAX From 10 000 EUR Minimal investment About 1 200 000 EUR 5 From 1 seat to full hall The size of conversion Full hall In order of magnitude lower Current additional expenses More in 15 times 5 From 8 months Payback From 3 years 5
- 20. Variants of conversion for cinema hall Alternative cinema equipment 2D Dream Seat IMAX Dream Seat Platf. х4 Dream Seat Any Name Dream Seat The minimum volume of the conversion - a row a hall a row a hall a row a row a row Minimum number of seats for conversion 320 30 250 30 180 30 30 30 The cost of conversion (EUR) - 105 000 1 300 000 105 000 862 069 105 000 204 720 105 000 The number of films/year (approx.) 52 52 27 52 31 52 22 52 The basic ticket price (EUR) 6,0 6,0 6,0 6,0 6,0 6,0 6,0 6,0 The added value of the ticket (EUR) 0,0 2 4 4 2,8 2,8 4,5 4,5 The added value of the ticket (%) 0% 33% 67% 67% 47% 47% 75% 75% New ticket price (EUR) 6 8 10 10 8,8 8,8 10,5 10,5 Occupancy of the seats (%) 15% 35% 22% 35% 23% 35% 35% 35% Converted area / Full area 0% 15% 78% 15% 100% 15% 15% 15% Number of spectators per year at conv. area 105 120 22 995 118 260 22 995 90 666 22 995 22 995 22 995 Total number of spectators per year 105 120 112 347 118 260 112 347 90 666 112 347 112 347 112 347 Calculated Box Office (EUR) 630 720 720 072 1 182 600 766 062 797 861 738 468 777 560 777 560 Growth of Box-Office (EUR) 0 89 352 551 880 135 342 167 141 107 748 146 840 146 840 Possible extra costs per year (estimated, EUR) 0 10 400 152 859 10 400 9 300 10 400 6 600 10 400 Extra costs for electricity per year (EUR) 0 3 219 8 176 3 219 42 311 3 219 3 219 3 219 Extras EBITDA in the first year (EUR) 0 75 733 390 845 121 723 115 530 94 129 137 020 133 220 Payback period (years) - 1,39 3,33 0,86 7,46 1,12 1,49 0,79
- 21. DreamSeat - The best indicators of financial risks and return on investment. - The minimum investment amount. - The absence of a fundamental restructuring of the hall and communications. - Minimum terms of the conversion of the hall. - The minimum power consumption.
- 22. Recommendations for installation of dynamic seats DreamSeat - The main target audience - with an income above average. - One row in each hall better than all rows in one hall. - Low-voltage power supply of each seat - the key to electrical safety of spectators.
- 23. And, you can install the latest attractions + DreamGo + 5D DreamStart
- 24. Connect them to the network and run the COMPETITIONS! DreamStart
- 25. Business model for the simulators DreamSim Type of equipment (DreamStart/ DreamGo + 5D) DS DS DS DS DS DG + 5D DG + 5D Installation (alone / network) - - LAN LAN LAN LAN - Number of seats 1 1 1 1 1 1 2 Capsule - Yes - - Yes Yes Yes TV 55" (instead base) - 3 - 3 1 1 1 Number of purchased simulators 1 1 2 2 2 2 1 The total cost of the set 6 420 12 668 12 840 15 978 19 940 32 920 17 960 The average cost of a session (EUR) 3,0 3,0 3,0 2,5 3,0 3,0 4,0 Workload of the simulators (%) 20% 15% 25% 25% 20% 30% 25% Revenue per year (EUR) 19 710 14 783 49 275 41 063 39 420 59 130 49 275 Extra costs for electricity per year (EUR) 675 659 1 380 1 380 1 349 1 410 767 Rent charges (EUR) 8 400 8 400 16 800 16 800 16 800 42 000 21 000 Personnel costs (per year, EUR) 7 680 5 400 18 000 18 000 14 400 21 600 9 000 Costs for 5D-movies from the second year 0 0 0 0 0 2 000 2 000 EBITDA per year (EUR) 2 955 323 13 095 4 883 6 871 -7 880 16 509 Payback (years) 2,2 39,2 1,0 3,3 2,9 NO 1,1
- 26. Installation recommendations for the DreamSim - Maximizing of the number of visitors - Network from 2 DreamStart - the perfect solution for entertainment, attraction and risks - Program of group and package discounts - Changing the routes in games is not more than 1 time per day - Bonuses for champions
- 27. Stable high income brings DreamSim 5D
- 28. Advantages of DreamSim 5D - Scalability of Hall - from 1 chair and to the limits of your imagination. - The best video quality on the market. - Power base configurations - from the usual outlets in 220V. - Low-voltage power supply of each seat - 48V. - The most rapid seats at the market.
- 29. Business model for the DreamSim 5D Number of seats 3 4 5 6 7 8 9 The total cost of the set(EUR) 31 080 47 040 54 180 61 320 68 460 75 600 82 740 The average cost of a session (EUR) 3,0 2,5 2,0 2,5 3,0 2,5 3,0 Workload of the simulators(%) 35% 30% 25% 20% 15% 25% 25% Workload of the hall (average)(%) 90% 85% 80% 75% 70% 65% 60% Revenue per year(EUR) 74 504 67 014 52 560 59 130 57 947 85 410 106 434 Extra costs for electricity per year (EUR) 3 577 4 088 4 599 5 110 5 621 6 132 6 643 Rent charges(EUR) 16 800 18 900 25 200 28 000 33 600 36 400 39 200 Personnel costs (per year, EUR) 12 096 12 240 12 000 10 800 8 820 15 600 16 200 Costs for 5D-movies from the second year (EUR) 2 000 2 000 2 000 2 000 2 000 2 000 2 000 Expenses from the second year (EUR) 36 473 39 228 45 799 47 910 52 041 62 132 66 043 EBITDA for 1 year(EUR) 38 031 27 786 6 761 11 220 5 906 23 278 40 391 EBITDA from 2 year(EUR) 38 031 27 786 6 761 11 220 5 906 23 278 40 391 Payback (years) 0,8 1,7 8,0 5,5 11,6 3,2 2,0
- 30. Installation recommendations for the DreamSim 5D - The optimum set - with 3-4 chairs - Integrated ticketing (+ 5D cinema with discount at 30%) - Advertising of the next week 5D-movies before a session - Special price for 1 movie in 5D weekly - Weekly rotation of films
- 31. Lots of fun at home! The minimum area and the cost + Virtual RealityDreamStart
- 33. Our solutions are made for your business and pleasure. We are ready to help you earn and save more. Especially in a crisis! The decision is yours!
- 34. This presentation is based on information from the following sources: :•1 "World review of the entertainment industry and the media: the forecast for 2012-2016“. PWC 2 http://www.nashgorod.ru/news/news42506.html 3 "Review of the Russian film market. Results of 2013 ". NEVAFILM RECEARCH 4 http://www.thewrap.com/four-d-theaters-buck-jerk-spray-their-way-into-america/ 5 http://www.secuteck.ru/newstext.php?news_id=66442&format=printer-friendly 6 https://prezi.com/dk3ljmuhs3fz/imax/ 7 ANNUAL REPORT IMAX Corporation for 2013
- 35. We express our gratitude NEVAFILM RESEARCH and personally to Ksenia Leontieva and toPricewaterhouseCoopers for the opportunity to use the results of their research in this presentation!
- 36. We'll reply for all questions FREE!!! • by Skype: Dream Sim • by e-mail: sales@dreamsim.net • by phone: +(371) 2 9237495 • In office : Latvia, Riga, Maskavas iela, 322b
- 37. Profitable dynamics. For income. For home.