Storyfiesta.com: Marketplace for Kids entertainment

Abstract

Our marketing research demonstrates that parents place significant value on culturally relevant content and are willing to pay a premium for it. Moreover, parents desire a product that can deliver content to their children anytime, anywhere. It is our belief that by aggregating Indian-specific stories and distributing them through modern technology, we can create significant value for both our customers and investors. Our offering Storyfiesta.com is a Marketplace for Kids Entertainment, from where parents can access Indian value centered entertainment content in various forms like audio/video stories, animations, narrated stories etc. At the core, online platform is only an enabler for various modes of delivery through Dial-in Number, Website and Online Portal. Storyfiesta.com is a marketplace where young artists/ animators/movie makers/teachers can sell their entertainment or educational content to Kids. Storyfiesta.com is different from YouTube and other online entertainment portals because it will be completely focused on Kids and value centered content. Compared to ACK/Karadi tales it will differ because it will provide user generated content and use latest technologies to serve relevant content customized to Kids preferences. Our target customers are parents of Kids in the age group of 4-12 years. These kids cannot read books or don’t want to read. They resort to cartoon channels and video games, which haven’t been developed with the focus of inculcating Indian value system in children. Also they have been mostly imported from western culture and don’t educate Kids on Indian culture. The total addressable market includes all Indian families, inside and outside India, with young children ages 3-10. There are roughly 1.2 billion people of Indian origin, and roughly 100-140 million households with children 3-10 years old . Roughly 75% of these households are lower class and would have difficulty paying for a mobile content service, but the remaining 25% (25 million – 35 million) are middle and upper class Indian families. The middle class population can be further segmented into domestic and diaspora/NRI. There are roughly 26 million NRIs worldwide . With similar approximate class ratios (our best guess based on the limited data), there are roughly 0.5 – 0.75 million middle/upper class diaspora Indian households with young children. To put these numbers in perspective, Our competitor ACK has plans to invest 15-20 million to capture this growing demand in Kids entertainment segment. Initially we will be building our portal and providing initial user content based on Indian folk lore, and Mythological characters in regional languages using regional characters. Using this portal, we next want to add delivery mechanisms through Mobile, On-demand and DVD disks. As the user base will develop, we will enable artists/animators to build their own content and sell it through our portal. As per our analysis there are more than 120 animation schools in Bangalore itself, churning out 5000+ animation specialists every year. By organizing competitions and giving them base computer models for some characters, we can get plenty of content generated by them. This content will be screened and then made available on TV, Mobile and Internet. Users will be free to set their own prices on and above a base price and it will mainly work on revenue sharing basis with the users. In the process, we will be building IPR through copyrights of characters created and their animation models. After first 2 years, it is mostly self-financing with positive cash flows. For first 2 years, we will need 1 crore INR to cover initial setup costs, marketing-sales-distribution costs and story development costs. Revenue estimates for first 3 years is 1.5 crore in 1st year of launch, 2.7 crore in 2nd year and 4.2 crore in 3rd year. This is highly scalable model and it can be expanded into territories like education, movies, sitcoms, games etc. Exit options include IPO to acquisitions by Internet Biggies. Overall, we believe technology enables us to give Kids a more suitable value-centered entertainment than cartoon channels and video games. We aim to leverage technology and first mover advantage to capture this market.