Monetizing Cirque du Soleil: Leveraging New Revenue Streams in a Digital Era
Cirque du Soleil, known for its entertainment focus, faces challenges due to the COVID-19 pandemic affecting ticket sales. The company is exploring digital experiences, brand activation, and partnerships with streaming platforms to increase brand awareness globally. With a strong emphasis on entertainment, Cirque du Soleil aims to diversify revenue sources through initiatives like merchandising, digital content, and services while continuing to prioritize its core entertainment offerings.
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CIRQUE DU SOLEIL CIRQUE DU SOLEIL ENTERTAINMENT GROUP ENTERTAINMENT GROUP FIA CONSULTING FIA CONSULTING
OUR TEAM NATHAN MENDES NATHAN MENDES Finance & Data Analysis MARIANA PINTO MARIANA PINTO Business Insights NATASHA MUNHOES NATASHA MUNHOES Strategy & Operations EZEQUIAS RODRIGUES EZEQUIAS RODRIGUES Marketing & Sales
AGENDA KEY ISSUE KEY ISSUE AND AND CHALLENGES CHALLENGES RECOMMENDATION RECOMMENDATION MARKET MARKET ANALYSIS ANALYSIS EVALUATION OF ALTERNATIVES EVALUATION OF ALTERNATIVES RISKS RISKS AND MITIGATION AND MITIGATION STRATEGY & IMPLEMENTATION STRATEGY & IMPLEMENTATION PLAN PLAN FINANCIAL FINANCIAL ANALYSIS ANALYSIS
CIRQUE DU SOLEIL MAIN REVENUE COMES FROM TICKETS SALES, A CHALLENGING ISSUE THROUGH COVID PANDEMIC WHAT IS HAPPENING NOWADAYS: Ticket sales 85% Recently spent 16 months without any show Covid pandemic (new variant) Digitalization world Merchandising 15% Revenue
HOW TO BETTER MONETIZE CIRCLE DU SOLEIL BUILDING A DIGITAL EXPERIENCE? ACTIVATING BRAND AND INCREASE BRAND AWARENESS THROUGH THE GLOBE DIGITAL CONTENT MERCHANDISING SERVICES Strong presence in social media with influencers Partnership with biggest streaming platforms (e.g. Amazon Prime video, Netflix) Partnetship with game companies and TV channels Brand licensing: stablished sales channels Partnership with biggest e- commerce platforms (e.g. Amazon) Education: online and in- person courses (amusement, make-up, magic, acrobatics) Creation, production and distribution: business model
CDS HAS KEY FOCUS ON ENTERTAINMENT AND WILL CONTINUE TO FOCUS ON IT, BUT LEVERAGE NEW REVENUE STREAMS
CDS HAS KEY FOCUS ON ENTERTAINMENT AND WILL CONTINUE TO FOCUS ON IT, BUT LEVERAGE NEW REVENUE STREAMS SOURCE OF REVENUE SOURCE OF REVENUE AS IS TO BE Tickets sales Tickets sales Others Others Merchandising Merchandising 27% Digital content Digital content 0% Services Services
WHAT IS AROUND CIRQUE DU SOLEIL ENTERTAINMENT GROUP Few direct competitors Few direct competitors Change of consumer habits due to pandemic Change of consumer habits due to pandemic It is the only organization that tour in 450 cities. People got used to consume entertainment online Growth of content platforms Growth of content platforms People are more interested in artistic People are more interested in artistic activities activities A new market arrised with Netflix, Amazon Prime and HBO Max. There was a growth in dancing and singing with the use of tiktok and Instagram during pandemic
WHAT IS INSIDE CIRQUE DU SOLEIL ENTERTAINMENT GROUP CDS CDS is is global global live live entertainment entertainment leader leader Dependence Dependence on on mainly mainly one one source source of of revenue revenue It has 9.1/10 brand love and 95% of awarness CDS s shows are accountable for 85% of its total revenue High number of fans High number of fans Is not relevant in digital world Is not relevant in digital world 13 millions of fans in their social networks and more than 100k daily site visits Their online initiatives did not generate interest
CIRQUE DU SOLEIL HAS UNIQUE CORE COMPETENCES, THAT BROUGHT THEM TO WHERE THEY ARE 3 2 1 Focus on Kids and family segment Magic Live Entertainment Additional Strategic Acquisitions Digital World PRODUCTION PRODUCTION CREATION CREATION DISTRIBUTION DISTRIBUTION Production plans Engagement Process refinement Projects production Design and development Concepts that fit need PILLARS FOR SUCCESS
BASED ON CDS COMPETITIVE ADVANTAGE, WE DESIGNED SOME ALTERNATIVES Create a new Create a new digital revenue digital revenue stream stream Create a digital Create a digital platform with platform with proper content proper content Become a Netflix Become a Netflix of arts and music of arts and music Produce live online Produce live online shows shows Profitability LOW LOW MEDIUM MEDIUM HIGH HIGH MEDIUM MEDIUM Alignment with mission HIGH HIGH HIGH HIGH LOW LOW MEDIUM MEDIUM Innovation LOW LOW HIGH HIGH MEDIUM MEDIUM LOW LOW Brand awareness MEDIUM MEDIUM LOW LOW MEDIUM MEDIUM HIGH HIGH Digital inclusion MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM HIGH HIGH
GIVEN THE DYNAMIC SCENARIO, WHAT ARE THE RISKS AND HOW INSTACAR CAN MITIGATE THEM Potential risks Potential risks Risks mitigation Risks mitigation Recommendation Recommendation 1 1 1 1 Expand CDS digital team Operational complexity Operational complexity Creation of a relations team 2 2 2 2 Relationship with partners Relationship with partners Create a new digital Create a new digital revenue stream revenue stream We are planning an investment divided in years 3 3 3 3 High investment High investment Gradual investment and periodic analysis of external environment 4 4 4 4 Consecutives COVID waves Consecutives COVID waves 12
KEEP THE CORE BUSINESS BUT EXPAND TO NEW REVENUE STREAMS THROUGH PARTNERSHIPS & BRAND REACTIVATION Category Activity Channel Partners/Sponsors Main Target TV Competition Show (Adults & Kids) MGM Studios 40th anniversary of Cirque du Soleil (feature film) Digital Digital content content Circus series (with Cirque du Soleil references; e.g. The Queen's Gambit) B2C Digital Netflix Cirque du Soleil series (back-stage) Fortnite Cirque de Soleil game Merchandising Merchandising Expand sales to other platforms (products'licensing) Amazon Cirque de Soleil Academy (Adults & Kids) Digital / F2F (Tours) Harvard/Coursera/ MasterClass B2C & B2B Services Services
IMPLEMENTATION TIMELINE 16th 16th June June 2024: 40 2024: 40 years years of of Cirque Cirque du du Soleil Soleil
CIRQUE DU SOLEIL PRESENTS A CONSISTENT CAGR IN THE PAST YEARS, THAT WILL BE SUSTAINED IN THE FUTURE WITH THE NEW REVENUE STREAMS Revenue projection (total $m) Revenue projection (total $m) Investment breakdown (%) Investment breakdown (%) 5940 28% 4304 3119 60% 12% 2376 2260 1722 1638 1248 1187 904 742 655 Shows operations Administrative New business set up 2023 2024 2025 2026 2027 2028 Investment Revenue
BY 2028 ~27% OF TOTAL REVENUE WILL BE CREATED FROM THE NEW REVENUE STREAMS R Revenue evenue evolution through years (%) evolution through years (%) Breakdown Breakdown in 2028 in 2028 of of revenue revenue streams streams (%) (%) 3% 8% 12% 15% 18% 14% 27% 12% 11% 9% 8% 8% Digital content Digital content and Services Services will be responsible for ~74% of the new revenue 83% 80% 77% 76% 74% 65% 2023 2024 2025 2026 2027 2028 Tickets Others (actual) New revenue streams The new revenue streams considered mide term time horizont (2028), but we foresee even continuous growth of these categories in long term
CONCLUSION CIRQUE DU SOLEIL IS A LEADING COMPANY IN ENTERTAINMENT AND WILL LEVERAGE ALL DIGITAL CHANNELS TO BOOST THE MISSION AND SUPPORT GROWTH OF THE COMPANY Thank You!
