Acquisition project | Pocket FM

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The Product - Pocket FM

Pocket FM: Online audio streaming platform, offering content in various genres including romance, horror, fantasy, sci-fi, mythology, suspense, and thriller, and languages such as Hindi, English, Malayalam, and Marathi, in an episodic format (10 - 30 minutes)

What does the product solve for?

Pocket FM solves the problem of finding and enjoying audio entertainment, specifically focused on non-music content like audio stories, audiobooks, and podcasts. What Pocket FM offers

For listeners:

• Content Discovery: helps users discover new audio stories, and audiobooks based on their interests.
• Availability of Fresh Content: Pocket FM offers a constantly updated library of audio stories, audiobooks, and podcasts, ensuring listeners always have fresh content to discover. Additionally, freemium users get access to one new episode per series daily, while those who prefer binge listening can unlock the entire series with in-app coin purchases.
• Accessibility: provides a platform to easily access and listen to audio content on the go, through a mobile app.

For story writers:

• Large Audience Reach and distribution: provides writers with a huge potential audience for their work.
• Quick feedback on the story: provides quick feedback to writes so that they can use the feedback on the ongoing story
• Monetization: writers can earn based on the number of times listeners play their content. This provides an ongoing income stream for popular series.
• Launchpad for storytellers: a platform for aspiring writers to launch their careers and gain recognition through audio storytelling

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Product Features and Functionalities

Pocket FM stands out as a user-friendly platform that caters to fans of audiobooks, podcasts, and serialized audio stories.

An Ever-Expanding Universe of Audio: Pocket FM boasts a massive library of audiobooks, podcasts, and serialized stories, constantly growing with fresh content. Their intuitive discovery tools make it effortless to navigate this vast universe and find exactly what sparks your interest.

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Seamless Listening Experience: The intuitive audio player goes beyond basic playback. You can download episodes for offline listening, share your favorites with friends, leave comments, and fine-tune the playback experience with adjustable speed controls and sleep timers – perfect for winding down before bed.

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Flexible Subscription Options: Pocket FM caters to both casual listeners and binge enthusiasts. Freemium users receive one new episode per series daily, keeping them engaged and enticing them to unlock additional episodes using in-app purchases. For those who prefer to devour an entire series at once, the platform allows for bulk episode unlocking with coins.

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Elevator pitch

Tired of the same old music on repeat? Pocket FM is your all-access pass to a world of fresh audio entertainment. Discover new shows you'll love, listen anywhere, anytime, and unlock a world of stories, knowledge, and entertainment. Pocket FM - where stories come alive.

Is the product ready for acquisition?

Here's what we can draw based on available information online:

• Growth: Pocket FM has a user base of over 130 million listeners globally, which suggests significant market traction [Source: The Economic Times].
• Funding: Recent Series D funding of $100 million in March 2024 indicates investor confidence in the company's growth potential. [Source: Tech Crunch]
• Content Strategy: Focus on exclusive podcasts and a Rs 250 crore Writer's Fund for 2024 suggests a strong content acquisition or creation strategy. [Source: The Economic Times]

Conclusion: Based on the analysis, Pocket FM has found PMF and is ready for acquisition (mature scaling).

The Users

Ideal Customer Profile (ICPs)

ICP Prioritisation framework
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Time, Money, and Value for Different ICPs

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ICP 1: The Busy Professional

Juggling a demanding career, this individual craves entertainment and knowledge consumption during their lengthy commutes (3-4 hours daily). A high spender on digital entertainment (over INR 3,000 yearly), they prioritize convenience and value. Time is precious, and Pocket FM's extensive library and effortless discovery tools offer an efficient solution. Their willingness to pay reflects their time-saving focus.

ICP 2: The Regional Language Enthusiast

Limited access to high-quality audio content in their preferred language fuels their interest in Pocket FM. Listening 2-3 times a week, they prioritize affordability. Freemium options or low-cost subscriptions would be most attractive to this cost-conscious individual. Pocket FM bridges the gap by providing the content they crave without breaking the bank.

ICP 3: The Multitasking Master

Adept at juggling tasks, this individual seeks engaging audio entertainment for daily commutes (1-2 hours) and multitasking activities. Similar to the Regional Language Enthusiast, they prioritize affordability. Pocket FM's engaging content keeps them entertained while on the go, and the platform's freemium model or low-cost in-app purchases cater to their budget-conscious approach. Their time is valuable, but affordability remains a key factor.

Conclusion
Given their significant spending power and time spent consuming audio entertainment, Busy Professionals (ICP-1) emerged as a primary target audience for Pocket FM. However, the platform's diverse content library and flexible subscription options hold value for all three user groups we explored.

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The Market​

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Estimating the TAM and SAM for Pocket FM

Estimating the Total Addressable Market (TAM)

Due to the niche nature of Pocket FM's focus and limited data availability, calculating a precise TAM is challenging. However, by employing a bottom-up approach with conservative assumptions and leveraging relevant market research, we can create a working estimate.

Challenges and Considerations:

• Geographic Focus: India
• The forecast size of the audio over-the-top (OTT) market in India in the financial year 2021 is projected to be 0.6 billion U.S. dollars. It is expected to grow up to 1.1 billion U.S. dollars in the next four years and up to 2.5 billion U.S. dollars by the end of the financial year 2030. [Source: Statista]
• According to a report by Deloitte India, the Indian audio OTT market is expected to reach $3.5 billion by 2025. [Source: Entrepreneur India]
• Vernacular music now accounts for 34% of all streams with Punjabi songs heading the pack [Source: Business Insider]
• 44% of users pay for audio content. Among them, 33% indicated a monthly expenditure of over Rs.300, while 13% allocated between Rs.100 and Rs.300 and 54% spent less than Rs.100 per month. [Source: The Mint]
• Limited public information regarding the audio entertainment user base.
• Niche Focus - ****Pocket FM caters to a specific audience interested in audiobooks, podcasts, and serialized stories, unlike mainstream music streaming services.

Methodology:

Employing a bottom-up approach, we'll estimate the TAM by multiplying the following factors:

1. Target Audience: People in India who enjoy audiobooks, podcasts, and serialized stories in their preferred language.
2. Market Penetration: Percentage of the target audience with internet access and smartphones.
3. Interest in Audio Entertainment: Percentage of the market actively consuming audiobooks or podcasts.
4. Average Revenue per User (ARPU): Estimated average revenue generated from a single user through subscriptions or in-app purchases.

Estimating Factors:

1. Target Audience: Assuming English and major regional languages (Hindi, Tamil, Telugu, Bangla, Malayali) are offered, we can estimate a conservative target audience penetration of 20% among smartphone users:Target Audience = 1.4 billion * 0.74 * 0.2 = 207.2 million
2. • India's population (as of 2023): 1.4 billion (Worldometer)
   • Smartphone penetration in India (2023): 74% (Statista)
3. Market Penetration of the Internet: Assuming only individuals with internet access will utilize Pocket FM:Market Penetration = 207.2 million * 0.63 = 130.6 million
4. • Internet penetration in India (2023): 63% (a little higher in metro cities)
5. Interest in Audio Entertainment: Assuming a conservative 10% of the market actively consumes audiobooks or podcasts:Interest in Audio Entertainment = 130.6 million * 0.1 = 13.06 million
6. • Limited data on specific audiobook/podcast user base in India. Industry reports suggest audiobook consumption is rising globally.
   • Podcast listenership in India is growing.
7. Average Revenue per User (ARPU):
8. • A freemium model with in-app purchases and potential subscriptions.
   • Considering regional pricing and competition, a conservative ARPU of $2 per month is assumed.

TAM Calculation:

TAM = Interest in Audio Entertainment * ARPU * 12 months

TAM = 13.06 million * $2/month * 12 months = $315.36 million

Important Considerations:

This is a conservative estimate. Actual TAM could be higher based on factors like:

• • Higher interest in audio entertainment
  • Expansion to other regions with similar demographics
  • Premium content offerings driving higher ARPU

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Conclusion:

This calculation estimates a TAM of $315.36 million for Pocket FM in the Indian market, focusing on audiobooks, podcasts, and serialized stories in various languages.

Estimating SAM for Pocket FM in India

This approach leverages our prior discussion on the Indian market for audiobooks, podcasts, and serialized stories.

1. Revised Total Addressable Market (TAM): We previously estimated a TAM of $315.36 million for Pocket FM in India. This figure represents the overall market potential for audio entertainment.
2. Market Share within TAM: Here, we aim to identify the Serviceable Addressable Market (SAM), which is the portion of the TAM that Pocket FM can realistically capture. This depends on factors like:
3. • Target Audience Fit: Not everyone interested in audio entertainment aligns with Pocket FM's offerings. Users primarily interested in music might not be part of their SAM.
   • Focus on Indian Languages: If Pocket FM caters primarily to Indian languages, users who prefer content in other languages wouldn't be included in the SAM.
   • Competition: Existing audio streaming services might already serve a segment of the target audience.
4. Market Share Assumption: Considering these factors, we can estimate the percentage of the TAM (revised to $315.36 million) that Pocket FM can realistically reach. Let's assume a conservative market share capture of 25%.
5. SAM Calculation: Based on the revised TAM and assumed market share:
6. • SAM = $315.36 million * 0.25 = $78.84 million

Key Points:

• This approach refines the TAM to better reflect Pocket FM's target audience in India.
• The 25% market share assumption is a starting point and can be adjusted based on further research or expert opinions on Pocket FM's competitive landscape.

Acquisition Channels​

Here are possible acquisition channels, along with their potential effectiveness for Pocket FM's user acquisition project in India, considering its focus on audiobooks, podcasts, and serialized stories:

The acquisition channels:

• Organic
• • SEO
  • ASO (App Store and Play Store)
  • YouTube Channel
• Paid Ads
• • Google Ads
  • Facebook/Instagram Ads
• Content Loops
• Referral
• Partner Integrations

Prioritization of the channels:

Organic (SEO & ASO):

When searching on Google for "audio story series," Pocket FM's link ranks at the top. However, this isn't the case for other terms like "audio story Hindi app." On the contrary, the app claims the top spot on both Google Play Store and Apple App Store for the search term "audio stories."

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Paid Ads: Pocket FM excels in paid advertising (Google Ads & Facebook/Instagram Ads) (evident from Meta Ads Library - 300+ ads). Most of their user base originates from paid ads, leveraging captivating stories and an enticing freemium offer to engage and retain users effectively.

• Storytelling and Cliffhangers: This is a winning strategy! Pocket FM should continue using engaging stories with cliffhangers in their ad creatives to capture user attention and drive app installs.
• Target Audience Optimization: Analyze user data from paid ad campaigns to refine targeting and ensure ads reach users most likely to convert into loyal listeners.
• Track Performance Metrics: Closely monitor key metrics like click-through rates (CTR), cost-per-install (CPI), and user engagement to optimize campaigns for better results.

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Strategic Referral Programs:

• Leverage Existing User Base: Since Pocket FM has a user base acquired through paid ads, consider implementing a referral program to incentivize them to invite friends and family.
• Targeted Incentives: Offer referral rewards that are relevant to your target audience. Discounts, free premium subscriptions, or bonus content could be effective options.
• Track and Analyze: Monitor the referral program's performance to identify successful elements and adjust incentives or communication methods as needed.

Exploring Partner Integrations:

• Identify Complementary Businesses: Look for partnerships with businesses that cater to a similar audience or complement Pocket FM's offerings. For example, integrations with e-reading platforms or language learning apps could be mutually beneficial.
• Co-marketing Opportunities: Explore co-marketing campaigns with partner businesses to cross-promote each other's offerings and reach new users.

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Prioritization framework - Cost, Efforts, and Scalability

​Based on our user acquisition prioritization framework and an evaluation of existing efforts, I recommend focusing on experiments in the following areas:

• Referral program
• Partner integrations

Referral

Leveraging User Sharing with a Referral Program

Currently, Pocket FM relies on organic content sharing – users recommend content they find exceptional to friends. While this demonstrates user satisfaction, it lacks a structured approach to user acquisition. Implementing a referral program incentivizes users to actively promote Pocket FM, potentially leading to:

• Increased User Acquisition: A well-designed referral program can attract new users through existing user recommendations.
• Enhanced User Engagement: Referral rewards, like platform currency, can encourage new users to explore Pocket FM's offerings, potentially increasing overall usage.
• Boosted Platform Currency Value: Increased user acquisition and engagement can lead to a more active platform currency ecosystem.

A referral program based on platform currency can be mutually beneficial for Pocket FM and its users:

• Users: Earn platform currency for successful referrals, allowing them to access premium content or features.
• Pocket FM: Expands its user base through user recommendations, potentially leading to higher engagement and platform currency utilization.

Missing Elements:

• Incentives for Sharing: Pocket FM currently lacks a structured incentive system for users to refer their friends.
• Personalization: The current sharing method might not be personalized for the recipient.
• Targeted Communication: There's no mechanism to identify and encourage happy users to spread the word about Pocket FM or specific stories they enjoyed.

Proposed Referral Program Design: Maximize User Sharing

This program aims to incentivize user referrals and drive user acquisition through a combination of:

1. Increased Program Awareness: We will raise awareness and visibility of the referral program within the app. This can be achieved through:
2. • Prominent Placement: Feature the program prominently in the app's interface, making it easy for users to discover and participate in places such as coin purchase sreen, profile screen, unlock next episode prompt on the app.
   • Explanatory Tooltips: Provide clear tooltips explaining the program's benefits and how to participate.
3. Incentivize Happy Users: We will reward users with platform currency for successful referrals. This incentivizes them to share Pocket FM with friends who might enjoy the platform.
4. Personalized Referral Experience: We will enable users to personalize their referral messages. This can include:
5. • Pre-populated Templates: Offer pre-written message templates with space for users to personalize their recommendations and add a voice note.

Key questions:

• Bragworthiness - a treasure trove of exclusive stories (especially in Hindi and regional languages), audiobooks, and podcasts, perfect for on-the-go entertainment during commutes or downtime
• Social Risk - Minimal. There is no social risk of sharing that you are using Pocket FM to listen to stories and podcasts. However, sometimes if you share specific stories without the right context it may seem like any other promotional message.
• Social Effort - Medium. Adding a personalized take on the story might take some time to think about. Does not require one-on-one time to convince a friend.
• Platform Currency - Coins to unlock new content + Ad free days for certain days if you are listening to the free version
• Who will we ask to refer? - The happy customers who
• • are promoters (9 or 10) in the Net Promoter Score survey
  • OR have rated 5 on the app store/play store
• Referral Reward:
• • Two-sided reward system:
  • • Referrer: Reward upon successful referral signup (200 bonus coins for unlocking stories, No ads for 7 days)
    • New User: Welcome bonus to new users who sign up through a referral link (200 bonus coins, No ads for 7 days, and access).
• How with these people discover about the program? -
• • Home page banner about the referral program - This will take the user to the referral page
  • Profile page
  • My library page
  • My store page
• How will they share?
• • Share on WhatsApp, Instagram, Facebook, Copy link
• How will they track the referral incentives? - On the dashboard inside the app
• • Implementing a referral tracking system using unique referral links or codes, ensuring smooth tracking across platforms (web and mobile apps)
  • On their referral page, show where the receivers are in the user journey (stages - how many people they have shared the link with, how many signed up and how many subscribed, etc.)
• How will they keep referring?
• • While the focus will be on getting the referer to share with 1 friend, we will create an exponential reward for the referer to increase the average referrals per user
• Fraud Prevention: Users will be allowed to 5 shares per day to prevent abuse on the platform (fake accounts)
  

User flow (Whimsical)

Mockups

Partner integrations

Age: 25 - 40

Location: (Mostly) Tier 1

The most common apps the ICPs use are:

• Uber
• Google Maps
• Cred
• MakeMyTrip
• HealthifyMe
• Strava

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​Based on this analysis, Pocket FM should focus on partnering with Uber for integrations. This also aligns with our selected ICPs who are frequent commuters.

Uber and Pocket FM partnership will be helpful to acquire new users in the long run and also has the global operations advantage since Pocket FM also has a presence in more than 20 countries.

Pocket FM Inside Uber

1. Uber can help Pocket FM reach out to user who wants to utilize the commute time and get bored.
2. Uber can also target specific users with common demography. Uber also has data on who commutes frequently.

User Flow Integration and Functionality:

• Discovery:
• • Ride Booking Screen: During the ride booking process, display a prominent section highlighting Pocket FM integration. This could be a banner.
  • Ride Confirmation Screen: On the ride confirmation screen, reiterate the availability of Pocket FM (could be a button) and offer a short description of its content library (Enjoy podcasts, audiobooks and exclusive stories on your ride with Pocket FM").
• Login or Signup:
• • Users are prompted to log in to their Pocket FM account or create a new one.
  • Uber might give the option to log in using their Uber credentials (phone no.) for a seamless experience.
• Content Access:
• • Seamless Integration: Upon tapping the Pocket FM option, seamlessly transition users to a dedicated Pocket FM interface within the Uber app. This can be achieved through lightweight integration to avoid app switching.
  • Content Access: Offer a curated selection of podcasts or audiobooks tailored for travel time (e.g., shorter episodes, motivational content, audiobooks in specific genres).
  • Playback and Control: Riders can directly play, pause, rewind, and fast-forward the chosen audio content within the Uber app.
• Post-Ride Engagement: When the ride ends, riders can be offered options to:
• • Continue listening to Pocket FM on the dedicated app
  • Save the played content for listening later
  • Learn more about the Pocket FM app

Benefits for Uber:

• Enhanced Customer Satisfaction: Provide an additional value proposition for riders, potentially increasing ride satisfaction and loyalty
• Potential Revenue Sharing: Explore revenue-sharing models with Pocket FM based on user engagement or subscriptions acquired through the integration

Mockups