Description

About the SVOD Business Excel Financial Model

The SVOD Business Excel Financial Model template is for the SVOD industry. SVOD stand for Subscription Based Video on Demand, It is an emerging industry, and people are attracted towards a new medium of watching movies and dramas. Netflix is the best fit in this industry.

Any business that comes under the SVOD (Subscription-Based Video on Demand) industry, can use this financial model very easily. Either you are an investor or entrepreneur, this model will serve you well. Along with that, you will find every tool that is needed for business analysis and project evaluations. This excel financial model is customized, dynamic, and flexible to use, you can change the names of the file, revenues, and cost heads in it.

How to Use it

The following are the explanations of the tool, how this model has built, and how you can use it to get the rationale for the business.

Table of Content Sheet

Even though the financial tool starts with the table of the content sheet, where you will have the file name and details of the tool. If you want to go to any specific sheet directly, you just have to click on the content, and it will redirect you to that sheet; however, the actual model starts with an input sheet, or you can say, the input sheet is the main sheet among all sheets. We called it an input sheet, because all data that you have, you enter in a sheet in multiple areas of the tool.

Input Sheet

In this Excel Financial Model for SVOD (Subscription-Based Video on Demand) Business, all variables will be included in an input sheet. It is easy to use because you can change all the variables in a single sheet instead of going to every sheet and changing the variable to analyze it further.

In the input, you will find all the variables like

• -Investments
• -Months of investment,
• -Capital expenditure
• -Opex (marketing, utilities, etc.) and
• -Payrolls

You just need to change the input cell (which is in a brown cell), and the whole model will get the update instantly.

User Acquisition Sheet

The next sheet would be the User Acquisition and Revenue sheet. There are 2 revenue channels, through which you can earn money. Furthermore, you can also use both revenue channels and can customize according to your revenue head. Whereas if you have only 1 revenue channel, you can leave the second revenue channel empty. In the same sheet, you will see a new and cumulative customer’s subscribers, then you can see a price, which is directly linked with the input sheet.

Revenue Sheet

Finally, you will have revenue in the tab. This flow would be the same for both the revenue channels.
Then you will find the

• -Income Statements,
• -Cash Flow Statements and
• -Balance Sheet separately.

Income Statement is linked with the

• -User Acquisition and
• -Revenue sheet,
• -whereas COGS and Opex is directly linked with
• -input sheet and
• -HR based salaries.

The Cash Flow Statement Sheet includes

The cash flow statement consists of three parts,

• -Cash flow from operations,
• -Investing and
• -Financing.

All 3 sections are linked with the Income Statement and Input Sheet, and the same happens with the balance sheet.

 Project Evaluation

Then the most important tools are the project evaluation, to whom we have created a long 3 Statement financial model. We analyze the forecasted future income and discount back it to with the rate that you will put in the tool

Then the Excel Financial Model will automatically generate

• -The NPV,
• -IRR Free Cash Flow to analyze the feasibility of the project.

If NPV is positive, that means the project is feasible. Not only we have analyzed the NPV etc., but also we have analyzed the equity that entrepreneurs should give away with investors according to investment and future earnings. Moreover, we have provided the Burn Rate Analysis and Minimum Investment.

KPIs’ and Metrics

After that, we need to analyze the operational performance of the project. In this sheet, you will have

• -Breakeven Analysis,
• -Minimum Subscribers to be B.E,
• -Target Sales.
• -Along with that, we have
• -Cost of Customer Acquisitions,
• -Average Revenue per Customers and
• -Customer Life Time Value. These metrics are very important for marketing and operational analysis.

Dashboard Sheet

The most important tool for any Financial Model is the Dashboard, which is the graphical representation of the project. Either you are an investor or entrepreneur, you would always want to see the graphical representation of the business, which can help you analyze the business and help in decision making. In Dashboard, we have

• -Profitability Graphs,
• -EBITDA,
• -Cash Flow, and
• -Breakeven,
• -Revenue Contribution and
• -CAC and CLV graphs.
• -Last but not least, we have a sheet of
• -Depreciation and
• -Amortizations,

which is linked with the input sheet and Income Statements.

Along with that, we have HR bases Salaries, Payroll, and Opex to calculate the operational expenses separately then linked with the Income Statement.

Why this Excel Financial Model – Flexible and Dynamic

The best part of the SVOD Business Financial model is that the number of months reflected in the input sheet will automatically update the number of the month on the cash flow and balance sheet. You don’t need to change it on your own.