Kapil's Korner 

22.11.05

Lottery ka naya funda

I just got this as one of the many forward received every single day. But this one really made me wake up and take notice. Read carefully.

6 * 100 * 10 * 20 * 20 == 2400000
24 lakhs in 20minutes..
clue is KBC 2!

Any guesses??

6(Rs/SMS) * 100(entries) * 10( cities ) * 20 (districts ) * 20(states) ==
6 * 400000(people trying for the 2 lakhs cash price) Imagine what if 1000 entries try out from 100 cities??

The figure simply grows by 2 more zeroes and yields a whooping 24Crores!!
And it does not stops there... 1000 entries from 100 towns is a very small number .. in practice it could be another multiple of 100 or worst case a multiple of 1000 on an average..

In that case it is 24 * 100 crores earnings in just 20 minutes on every episode! And the price money :-)) mere 2 CRORE (and from whose pocket ;-)) Smart Business by Sidharth Basu!

And the best part of this calculation is just the SMS earning!

What about the Ad money ?? A rough annual profit calculation goes like this...

2400 * (5 * 4)(episodes/month) * 12== 576000 crores

Let even 50% get dissolved in taxes and other payments, still you will be left with ( which includes even the meagre 480 crores of price money..i.e., if every episode bags 2 crore prize!! ) 2,88,000 Crores profit ( only from SMS !!!! )

Interesting isn't it. And I guess this is only one of the many we can calculate. Look around and see the number of other SMS connected programs which invite users to send in SMS to vote, send feedback, contest answers and even bid. The programs may not generate so much money through the ads for bad TRPs or even survive the intense "on air" competition, but I guess the TV channels and Mobile operators are raking in the bucks while the producer worries on how next to improve the TRP. Whoever thought of this great marketing/money-making channel really must be thrilled to know how successful this model has been.

As a step forward channels are even giving away exclusive rights to particular mobile operators. For example, to participate in Kaun Banega Crorepati 2 you need to use the Airtel services only. Hows that? I would love to know the number of people who may have bought an Airtel connection only to send in answers for this "Hot Seat ka Sawaal". I mean come on, it's only Rs.200/month of investment PLUS the SMS cost giving you a chance to win the Rs.2 lakhs or a chance to be on the KBC sets. Not much for the prize money, you would say. But if you multiple the nos. we have a whooping collection out there. No wonder, you see a ALWAYS smiling Mr.Sunil Mittal.

On second thoughts, it's nothing but an advanced version of the lottery system. You paid 5 bucks for the lottery ticket and contributed to that big corpus for the prize money. And now they just made things easy by charging Rs.6/sms to enter that gamble. Not bad a deal, I would say. These days anything which can be done from the comforts of your house - Banking, Shopping, Bookings etc and now even lottery purchase is accepted with a big welcome.

By now are you getting those ideas on how you can tie-up with one of the mobile operators to make money for your venture.

2 Comments:
Anonymous Gangadhar said...

Wow..it's really an eye opener,Kapil...
And my recent post on kids is waiting for your comments..

23 November, 2005 22:01  
Anonymous Atul Sabnis said...

Kapil, came here thru Ganga's recommendation. this is amazing! drops make an interesting oceanic business model. :)

12 December, 2005 12:48  

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