Settlement & exchange platform for movie industry in India
Business Overview & Gaps
The business of movies in India involves immense value flow across various stakeholders in the distribution chain. There is however a lack of a dependable and organized platform for commerce between these stakeholders. Box Office collections ultimately drive the business of movies, but there are some key challenges faced by the principal stakeholders:
- Lack of Governance and Accountability
- Piracy and Revenue Leakages due to unreported and unaccounted sales
- Need for Business Intelligence but lack of statistical and factual data
- Revenue Degradation due to the number of participants in the Value Chain
- Cash handling and flow regularization across the Value Chain
The issues primarily are in the management of the agreements, collections, settlement, and business intelligence. The need was for a platform that guarantees payments and settlements to its subscribers. Our Customer wanted development of a settlement platform that took care of the industry needs.
- Understanding requirements and converting them to specifications, design and development and deployment
- Work with a T5 consulting company towards validating business workflow and doing risk assessment
- Vendor selection for head end infrastructure, network, communication and onsite installation and support services
- Design the data center as per ISO norms
- IP protection of customer ideas and filing of patents on their behalf
- Exhibitor and distributor agree on a “Pact”. The Distributor then fills a Pact form and attaches a copy of the Pact agreement and faxes it to the exchange.
- The Pact metadata is then entered into the exchange central system. This includes the movie, period of the Pact, revenue terms, taxes and number of shows etc.
- After the Pact is entered in the system, distributor using a login/password can view the list of Pacts assigned against his name. Distributor proof reads the Pact entered and approves it.
- After the Pact is approved by the distributor online, the Pact information automatically gets downloaded on iTicketing, a box office ticketing system. This ticketing System is located at the exhibitors end. The exhibitor at his end reviews the Pact and approves (or rejects) it.
- Once the Pact is approved by the exhibitor show timing, ticket rates and screen are configured in the iTicketing box office system by the exhibitor
- The box office sale of tickets happen
- At completion of each show, the sale data such as screen name, ticket count, class name, ticket cost, and total sale amount gets automatically uploaded on the central system.
- On completion of show and sales upload, the Pact is marked as “closed”.
- The Pact accounting happens in a way that the sales amount automatically gets distributed amongst all Stakeholders (i.e. Exhibitor, Distributor, State Government etc)
- Each stake holder has an online account to which the amount gets credited. The stakeholder can withdraw or remit amount to this account.
- Exhibitor has to keep a minimum balance in their account as the ticket sale happens at the exhibitor end and the physical cash remains at the exhibitor end.
Dusane’s solution included the following:
- Architecting an enterprise grade solution platform to run the Exchange
- Design and development of exchange central system.
- Development of exhibitor end ticketing system.
- Design integration protocols for integrating the ticket sales information with the central exchange system
- Integrate a leading bank’s front office system for account and deal settlement
- Design and implement the entire head end server and network infrastructure
- Work closely with one of the T5 consulting company to audit the business process and do business risk analysis
- Make the software and hardware infrastructure to be compliant with ISO 9002 standards
- Provide support to the systems and software after the launch
- Participate in technology presentation to leading industry players including production houses, distributors, exhibitors and various state governments
- Showcase upcoming movies to the distributor’s forum.
- Negotiate territory-wise best price
- View real time sales information and projections
- Prevention of revenue leakage
- Automatic settlement with guarantees
- Interact with exhibitors directly and direct theater hire
- Detailed business analysis and intelligence
- Parametric analysis – trend analysis, market analysis, movie analysis
- Free electronic ticketing system including the hardware
- High visibility amongst the content providers
- Automated regulatory compliance
- Value added services like concessions/food court system
- Automatic settlement with guarantees
- Real time tax revenue projection
- Reduction in administration overhead
- Compliance and regulatory reporting in-built
- Support for multi-level taxation
- Reporting in government approved formats
- Bottom line and taxation analysis