Description

Transactional Video on Demand

The internet has impacted the way we engage with videos. Companies can now deliver content either through wired or wireless solutions. It has led to profound innovation in the way we view content. Millennials and Generation Z now opt for ‘Video on Demand.’ It means that they see content as per their requirement, not when it is aired as per the wish of the broadcaster.TVOD – Transactional video on demand- is when users buy content on a pay-per-view basis. TVOD offers recently released content for a bunch of individuals- friends and family- to have an online theatre-like experience. It provides rights holders with higher revenues by giving users timely access to brand new movies and web series. The key to retaining customers is attractive price incentives.

Problem

There has been a worldwide decline in the attendance of the cinema audience. It is because the quality of experience in a cinema is affected by externalities like others’ behavior. In this fast day and age, it becomes difficult to get some time for entertainment according to the announced schedule of cinema. Moreover, many movies and shows only features in cinemas of a specific country or region.

The ongoing pandemic worsens the drop in the audience at cinemas. The majority of the cinemas worldwide have closed, putting the global entertainment industry in pause mode. The problems mentioned above presented a market gap in the form of an online platform for the multipurpose social experience of a theatre screening.

Solution

Our client introduced the industry to a unique and innovative solution. And to pitch the idea to investors, he came to us for a financial model and a pitch deck.

Oak Business Consultant made this TVOD Financial Model containing these contents:

• Develops Sales Strategy
• Calculate Start-Up Cost
• Calculate Utilization of Funds with Sensitivity Analysis
• Forecast Cashflow for 5 years
• Identify Issues
• Set Goals

Summary of Key Features & Benefits

The workbook contains editable real-world revenue and expenses figures and comprises the following features:

Inputs

The most important feature of the  Financial Model is the input sheet. The idea behind the projection and forecasting of the inputs is to create assumptions about the business’s growth and survival. we include revenue from all relevant sources such as subscriptions, service fees, transaction fees, and website advertisements.  In addition, all relevant inputs like monthly revenue, cost of services, and operating expenses are included there.

Yearly Income Statement/ Profit and Loss

We understand the goal of every online business is to make a profit for that there must be a mechanism that helps the business owners to determine whether they are making profits or otherwise. Hence, the yearly P&L gives you complete insights into revenue and operating expenses. The yearly P&L also contains several graphs, assumptions, ratios, margins, net profit, taxes, and profit after taxes.

Cash Flow Statement

Cash inflows and cash outflows are very crucial for an online business. Understanding the need to manage it well, Oak Business Consultant has prepared receivable and payable days to accurately predict cash activities.

Breakeven Analysis

The break-even analysis will help you to know at a glance the profits generated at the various levels of sales. The safety margin refers to the extent to which the business can afford a decline before it starts incurring losses.

Dashboards

Users and readers respond and process visual graphs better than data. We have used the dynamic chartss in sheets that are linked to tables. Furthermore, charts visually track profitability, revenue, cash flow, and several other financial metrics.

What makes this model a great buy?

The Financial Model comes with similar inputs to other businesses. However, it is important to understand that not every online or e-commerce business revenue and other inputs are similar. Therefore, TVOD Business Financial Model is a unique model that may help you forecast and evaluate your financial assumptions.

Moreover, this Financial Model is flexible and portrays in both design and technique. It is highly adaptable for the user in the long run. Therefore, all modifications and scenarios can be changed in any field successfully.

Input Assumptions

Oak Business Consultant has helped the TVOD company build a robust financial model.

OPEX 

We meticulously designed OPEX by analyzed the operating expenses of the company based on the client’s input. We calculated the predicted variable and fixed costs, including content, administration, marketing, and technical expenses.

Depreciation and Amortisation

We built the depreciation and amortization schedules. The company had a significant investment in intangible assets like software.

The Financials 

We prepared an income statement and predicted future income in the years to come according to a revenue model that befit TVOD. Moreover, the revenue model incorporates two separate streams, advertisements, and subscriptions. In the case of subscription, we eliminated the churn subscribers to get net revenue.

This Product Includes: 1 Excel File