Monetizing Cirque du Soleil in the Digital World: Strategies and Challenges
Explore the strategies and challenges involved in maximizing the monetization of Cirque du Soleil in the new digital landscape. Delve into key objectives, short and long-term strategies, distribution of revenues, target audience analysis, and the economic potential of the digital world through AR, NFTs, and video games.
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Cirque du Soleil The magical journey into the digital world January 2022
The process Implementation Plan & Financial Projections Risks & risk Mitigation Key Issues & Analysis Recommendations Alternatives
KEY OBJECTIVES How to maximize the monetization of Cirque du Solei brand, in the new digital world? Short Term Strategy Challenge Long Term Strategy Key Issues & Analysis
Cirque de Soleil: Rule breakers and moment makers The company depends on a major financial anchor: selling tickets from shows Distributionof revenues through category In 2021-2023 In % 285 1,500 65 PANDEMIC BEFORE MILLION LIVE SPECTATORS EVENT COUNTRIES PERFORMANCES The uniqueness of the Cirque de Soleil is their ability to paint reality in a different color. Their experience goes through their unique show so it is the main engine of their income. 15% 30% 40% 14 4,400 $100M PANDEMIC 85% DURING Shows have been mandated to be shut down Employees in temporary layoffs 70% lost revenue per month 60% Although Cirque de Soleil quickly overcame the losses during the epidemic and today sales performance is even higher than before it has to think about additional financial engines 2021 2022 2023 Revenues of marchandise , music shows etc. Revenues of tickets of core shows Key Issues & Analysis
Target audience and markets Where can this audience be targeted? Women aged 40-45 Client profile The group that is most active on social networks is between the ages of 9-18 * to expand Children and Youth Aged 5-35 65% of gamers aged 18- 37 ** *https://www.featherlight-design.com/ **From Bizportal The young profile of the customer that Cirque de Soleil aspires to is found on social networks, computer games and the digital worlds Key Issues & Analysis
The digital world - experience and economic potential AR NFT Video Games augmented reality A non-fungible token Computer technology used as a replica of reality. In this reality, virtual elements are integrated in additional layers. These elements blend in with the real environment in real time and interactively Irreplaceable tokens are used for digital works that are especially needed, such as blockchain art, digital collectibles and in the field of network games. In the Shadow of the Corona: Gaming is Breaking Records Includes a whole world: buying features, buying costumes for characters, weapons Large chains, famous and influential artists produce avatars, first rights and sell them in the trading arena Allows participants to have a unique experience at home as well An experience of reality from the living room of the house All of these platforms paint reality a different color and give the user an experience of a new and parallel world Key Issues & Analysis
The digital world - experience and economic potential AR NFT Video Games augmented reality A non-fungible token Market size of video game between 2018-2020 In Billion $ Market size of AR between 2018-2021 In Billion $ Market size of NFT between 2020-2021 In Billion $ 22 167 25 156 20.3 20 115 Revenues 15 12.5 10 7.2 1 5 3.2 2020 2021 0 2018 2019 2020 2018 2019 Market size 2020 2021 Market size Market size Significant economic potential, Main users: young people and children Key Issues & Analysis
Long Term Short Term Alternatives
Long Term The magic is live with What? Cooperation with famous artists and accompany on tour. Why? Income that does not depend on ticket sales and exposure to a younger target audience. For whom? 20-35 y.o. music lovers. The Cirque de Soleil world What? A digital AR performance that delivers the full experience of Cirque de Soleil. Why? Renewable technology allows you to reach everyone - in their own home. For whom? Everyone in the world has access to the Internet and technology. A Cirque on a mission What? A Console game that puts the players into your story. Why? Let anyone enter the world of Cirque de Soleil with a mission do feel the magic. For whom? 5-35 y.o. who have access to internet ang game console. Alternatives
Long Term YES The Cirque de Soleil world The magic is live A Cirque on a mission criteria NO Gives the full experience of Cirque de Soleil Exposes more people to the world of Cirque de Soleil Enlarges the world of Cirque de Soleil Alternatives
Short Term Reveal the magic What? Give a behind-the-scenes look at the Cirque de Soleil on social media and documentary movies. Why? Strengthen the brand and expose to new audiences. How? Sponsership with production and distribution companies & Presence on social media. Spread the magic What? Build viral content on social networks and interactive platforms that allows you to experience your magic. Why? For exposure to a younger audience and strengthening the brand. How? Building special filters for storytelling and spreading ticking challenges. Join the future of NFT What? Sale of NFT assets belonging to the company. Why? Creating a new revenue channel that does not depend on corona restrictions. How? Create a short campaign to increase value and maximize media coverage. Alternatives
Short Term YES Reveal the magic Spread the magic criteria Join the future of NFT NO Exposes more people to the world of Cirque de Soleil Gives the full experience of Cirque de Soleil Increases revenue Alternatives
Long Term The Cirque de Soleil world A Cirque on a mission A digital performance that delivers the full experience of Cirque de Soleil in AR. A Console game that puts the players into your story. Short Term Reveal the magic Give a behind-the-scenes look at the Cirque de Soleil on social media and documentary movies. Spread the magic Build viral content on social networks and interactive platforms that allows you to experience your magic. Join the future of NFT Sale of NFT assets belonging to the company. Alternatives
Recommendations Create experiences and moments using digital platforms New department of artists and creators of the digital world Recommendation
Recommendations Short term Long term Recommendation
Recommendations Short term Long term Recommendation
Recommendation Film production Producing an interactive show for the kids in which they decide what's going on Production of a documentary film and other films (musicals) Recommendation
Recommendation Social Networks Creating an interaction with the audience Challenges on Tik Tok Features to use - Filters Recommendation
Recommendation Short-term revenue channels Scheduling shows with businesses Increasing the number of sponsors Many entries for digital content NFT sale Sale of merchandise Recommendation
Recommendation Short-term revenue channels Scheduling shows with businesses Increasing the number of sponsors Many entries for digital content NFT sale Sale of merchandise Recommendation
Recommendation Creating a buzz ahead of the sale Selecting digital assets Tender for the sale of digital assets Create an NFT Recommendation
Recommendation Short-term revenue channels Scheduling shows with businesses Increasing the number of sponsors Many entries for digital content NFT sale Sale of merchandise Recommendation
Recommendation Custom - Option to design your merchandise and insert your face Merchandise Regular - Adding funny and merchandise Recommendation
Recommendations Short term Long term Recommendation
Recommendation AR platform Creating a world of augmented reality Recommendation
Recommendation A console game Create a game for game consoles Recommendation
Implementation - Short term 1st+ 2ndQ 3rd+ 4thQ Opening a new department - Define goals, responsibilities and interface with existing activities Choosing a broadcast channel and creating a collaboration with a film production company Recruitment - artists and creators, professionals in digital platforms (designers, developers ..) Creating a collaboration with a technology company that will enable the interactive model Redesign of the digital space and of the presence in the platforms Development of a platform for the new merchandise Increase revenue: Contact us to find new sponsors, turn digital assets into NFT Choose new merchandise Implementation Plan
Implementation - Long term 1styear 2nd+ 3rdyear Finding partners in the field of console games and creating a cooperation agreement General process for AR and for console game Characterization of environment and characters Environment / game design Development of the environment / game Finding partners from the field of augmented reality (AR) and creating an agreement for cooperation Continue to develop regular digital channels Implementation Plan
Implementation Financial Projections Income 1. 2. Shows to companies estimated income 10000$ - expenses : 3000$ ( salaries, costumes, sound workers) Merchandise estimated income 10% of the merchandise income = 1.7M . 10% growth year to year . investment buy technology that prints ( 300K$ ) Sponsors each sponsor invest 300K $ Average revenues of movie on Netflix is 300M$ in the first year we expect the movie to be successful and gain revenue of 400$ -> Cirque du Soleil 150M$ contract NFT s the average product price : 500$ . First year 2000 pieces , second tear 3000 Formula: 3. 4. 5. Million $ 2022 2023 25 shows 0.25 25 shows 0.25 Shows to companies Short term- Adding sponsors and preforming in front of companies will immediately create a positive cash flow Merchandise (10% of total merchandise income) 1 1.1 Additional 4 sponsors (two-year contract) 1.2 1.2 Movie on Netflix - 150 NFT s 1 1.5 total 3.45 154.05 Financial Projections
Implementation Financial Projections Income Formula: 1. .Game to Console average revenues of exciting console game is 300M$ annually 2. Cost per AR ticket is 30$ for the first year, and then the price rise to 40$. Estimated tickets sold 2M first year Long term- the pre- investment is staring to will yield profits Million $ 2024 2025 Shows to companies 25 shows 25 shows 0.25 0.25 Game to Console 200 230 AR tickets - 60 total 200.25 290.25 Financial Projections
Implementation Financial Projections Income through the years Million $ 2022 2023 2024 2025 total 3.45 154.05 200 290 Project revenue growth between 2022-2025 In Million $ 290 2022 2023 2024 2025 1 Financial Projections
Financial Analysis Investments Costs 1. 3D printing technology purchase costs 400K$ 2. Game for console development costs around 700K$ , we estimated 800K$ 3. Developing AR platform costs about 5 M $ Million $ 2022 2023 2024 3D printing technology 0.4 - - Game for condole External development 0.4 0.4 - AR Platform - External development 0.5 2 2.5 total 1.3 2.4 2.5 Financial Projections
Implementation Financial Projections - Expenses Formula: 1. Manufacture the merchandise each 3D printing costs averagely 5$ 2. Salaries for companies shows 10 artists and 3 technicians Million $ 2022 2023 2024 2025 Recrewing social media experts for new department Adding 7 employees Additional 3 - Additional 2 0.84 1.2 1.2 1.44 Manufacture the merchandise 0.5 0.55 0.6 0.65 Advertising on social platforms 1 1.5 2 2.3 Salaries for companies shows 0.13 0.13 0.13 0.13 total 2.47 3.38 3.93 4.52 Financial Projections
Implementation Financial Projections- NPV Millions $ 2022 2023 2024 2025 Investments costs 1.3 2 2.5 Expenses 2.47 3.38 3.93 4.52 Income 3.45 154.05 200 290 Total 0.32 - 148.67 193.57 285.48 Rate 10% NPV 27M$ - Positive cash flow Financial Projections
Risk & Risk Mitigation Impact Risk Mitigation Collaborations that do not meet the company's standard will damage its reputation. Introduce restrictions on contracts as you now produce and focus on the right partnership rather than revenue from it. Brand damage Probability Risk & Risk Mitigation
Risk & Risk Mitigation Impact Risk Mitigation Collaborations that do not meet the company's standard will damage its reputation. Introduce restrictions on contracts as you now produce and focus on the right partnership rather than revenue from it. A perfect experience Brand damage Entering the digital world will not give the perfect Cirque de Soleil experience. Regular monitoring of digital products and their rejection if necessary. Probability Risk & Risk Mitigation
Risk & Risk Mitigation Impact Risk Mitigation Collaborations that do not meet the company's standard will damage its reputation. Introduce restrictions on contracts as you now produce and focus on the right partnership rather than revenue from it. A perfect experience Brand damage Entering the digital world will not give the perfect Cirque de Soleil experience. Regular monitoring of digital products and their rejection if necessary. Decline in revenue Decline in revenue in the post-Corona world. Diversify the revenue centers and strengthen them all. Probability Risk & Risk Mitigation