#1 Idea Demolition 💣 — Rotten Tomatoes for Netflix (Business analysis)

Some Painlanders friends and I brainstormed different potential solutions starting from Painland's problems. I want to post these business ideas, and demolish them right away (if not promising) giving you the specific business, market and personal reasons why I discarded them.

Here is an example:

🎙PITCH
Name: Rotten Tomatoes for Netflix
Pain: I spend ages searching for the next movie to watch on Netflix
Solution: Chrome Extension for Netflix that filters the list of movies with a special Rotten Tomatoes Score Slider, that goes from 0 to 100%

💹 MARKET
Product Type: Micro SaaS
Customers: Netflix Users that use Chrome, and keep an eye on quality when looking for movies
Market Category: Entertainment
Market Type: Prosumer ($0-10/month)
Market Size (M): X0.000.000 (source: https://bit.ly/2LpVskv)

💰REVENUE
Revenue Goal (R): X0.000 $/month (this is my personal goal, change it as you like)
Price (P): 4.9$/month
Customers (C=R/P): X0.000 monthly subscribers
LFT (Life Time Value = 3 years x 12 months x $4.9) = $176.4 (optimistic, as we haven't consider the Churn rate)
CAC (allocated Customer Acquisition Cost = 0.3 x LFT) = ~ $40

🧐 RESULT
❌ I doubt that users will spend 4.9$/month to have this Chrome Extension installed, and even if they do, CAC is too low to make direct sales. So to launch this business we require a viral loop strategy or a strong word of mouth. And I don't think that this idea is cool and viral enough, to trigger such network effect. Another business model can be to publish it for free, and make money out of ads and sponsors, but that is not my business.

(On my Twitter https://twitter.com/m_mosca2, in the next days you'll find other entrepreneurial shots like this 🥃)

If you like it, or you have an idea to be demolished, let me know!

Cheers,
M