This week's 1001 startup idea is to establish a company that lets customers attend various events listed on its platform for a monthly subscription fee.
What is this weeks startup idea?
This week's 1001 startup idea is to establish a company that lets customers attend various events listed on its platform for a monthly subscription fee. The user can select from events like live concerts, comedy shows, theatre, etc. The company will be the "Netflix" of events across the globe.
Market definition for this startup idea
- About 18 million events and meetings are organised in the U.S. every year;
- Events Industry produces $280 billion in spending and $66.8 billion in labor income; and
- Overall, the events industry contributes $115 billion to the national GDP, $14.8 billion to federal tax revenue, and $13.2 billion to state and local tax revenue.
According to another report by raconteur.net, the live events industry is expected to be GBP 48 billion by 2020.
Competitor analysis for this startup idea
There are various companies which are experimenting in the live gigs segment. GiggedIn Infinite is a subscription service only for live music concerts. It is only available in Australia as of now. Showmango is an event-based subscription service and operates out of UK.
Pain point & target audience for this startup idea
The targeted customer market for this business is the "people interested in going for live events." Most of the live gigs go unnoticed and unsold, the primary reasons being that most of the people do not wish to pay the high costs associated with attendance. According to musicfeeds.com.au, almost 98% of live music events fail to sell out.
Value proposition for this startup idea
This business offers value to both the organisers as well as the attendees. The attendees can access the live shows without thinking about the cost of the show as the attendance will be covered by the subscription fee. For the organisers for a fixed fee, it brings more audience to the show which would have otherwise could have gone empty. For organisers, the sponsors want to see the reach and low attendance would jeopardise their subsequent sponsorship rates.
Business model for this startup idea
The customer will subscribe to the subscription plan. Afterwards, the customer can check the events that he/she is eligible to attend under the plan and can just RSVP on the app to attend it. The application will automatically generate the ticket for the user to participate in the live event. Since most of the people do not go to live events alone. It will be advisable to start another option of selling event tickets on the platform for the users to purchase tickets for people accompanying them to the show.
Way to market for this startup idea
The first step would be to tie up with event marketing companies for promoting the events that are being organized by them. The startup could make some shows free of cost in the beginning to attract the audience. Once the public gets into the habit of attending shows, the monthly subscription plan will be a compelling option to buy. The startup could also consider making the first few months subscription free on the lines of Amazon and Netflix for its users.
Milestones for this startup idea
The first milestones would be to start from one city and list at least 50 shows in that city for the first twelve months. The next step would be to ensure the attendance of at least 10,000 users at various events listed on the platform through the application.
Investment needed for prototyping this startup idea
For testing & building the prototype, pitch for raising 100K USD from angel investors or incubators like Y Combinator, Techstars, Dreamit Ventures and Angelpad. There should be no office rentals or salary payout; the entire budget should be apportioned for customer acquisition and technology.
Team Capability for this startup idea
You would need to have a co-founder with event management background and a tech expert as a co-founder for developing the right platform. In addition to this, you would need a growth hacker so that you can create buzz on the social media platforms and thereafter drive conversions.
Investors / Expert Take on this startup ideaGiggedIn has raised more than USD 500K from including the BlueChilli Venture Fund, Blacksheep Capital, QUT Creative Enterprise Australia, Dominet Digital, Social Family Group and some individual angel investors. Netflix already surprised people with its growth and other startups can follow its model. In case you need help in taking this idea further, please do write to us at hello@Yostartups.com or sign up for Excelrate - our virtual acceleration program for startups. We at YoStartups are more than happy to support young entrepreneurs in building businesses from ground zero across the world.