Piracy
Piracy has been the biggest challenge faced by this business vertical. In fact it challenges the very viability of this business. “Why will someone pay fifty rupees for renting a DVD when he can own it by paying just half?”
These players currently operate in a market segment that likes its movies served clear and unclipped. However, most do believe that the business would realise its true potential only when piracy ends or is significantly curbed. As Gyanchandani explains, “Piracy can be reduced at best with a decrease in the gap between theatrical release and the home video release of a movie; the discretion of which totally lies in the hands of the stakeholders of the film. We would like to combat piracy with the help and combined effort of all other organized players in the industry.”
Other USPs
The market already has a few established players. So, players have started using innovative ideas to distinguish themselves from the competition.
| Market Size | ||
| 2005-6 | 2009-10 | |
| Entertainment and Media Industry | 7.6 billion USD (INR 35,300 C)2 | 18.2 billion USD (INR 83,740 C)2 |
| Indian Film Entertainment | 1.5 billion USD (INR 6,800 C)1 | 3.33 billion USD (INR 15,300 C)1 |
| Home Video | 87-217 million USD (INR 400-1000 C)2 | 434 million USD (INR 2000 C)2 |
| Home Video Rental | NA | 409-817 million USD (INR 1,880-3,760)3 |
| Installed base of DVD players | 11 million (by end of 2006)4 | 66 million (by end of 2010)4 |
| Seekers + Households | 20 million5 | 32.5 million households5 |
| *1 USD=INR 46 *C = Crore | ||
| ||
BigFlix is trying to cater to a global audience; particularly the NRI audience by offering movie downloads at their site. The customer can download the movie and keep it all his life. Down the line, they plan to incorporate a download to rent option, where the subscriber can download a movie to watch within three days, at the end of which it is non-viewable.
Flickxpress has come up with a kiosk model for renting movies. It is similar to an ATM wherein you swap your membership card, enter the password, choose the movie and pick up the disc from the dispenser slot. Although the one time cost of these kiosks comes out to be pretty huge, the operational costs are expected to be extremely low. Currently, five kiosks are operational in Bangalore and Naren Pasuparthy, founder, Flickxpress is leaving no stone unturned to expand the operations rigorously. “We launched Flickxpress just three months back and the response has been overwhelming. We are in a midst of finalizing more locations for setting up our kiosks. We want to be in every market area, big grocery shop, and mall so that the motto of our business—entertainment on your terms—is fulfilled, he adds.
The Market
The way the future of this business is looking, it’s all rosy out there. The figures are pleasing. Moviemart has seen more than 100% growth each year since 2006. Seventymm had more than 200% growth after the completion of first year in operation. Bigflix has grown at 400% month by month in the last quarter. According to Mansharamani, this particular industry is growing at 30% per annum. Add to this the estimates done by ASSOCHAM that state that the size of the Indian domestic film industry is likely to double to Rs 400 billion (around US$10 billion) in the next two and a half years.
According to the FICCI- PWC report 2008, the home video market has witnessed dramatic changes in the last four years, having achieved a growth rate of thirty per cent. Its contribution stands at eight percent of the overall film industry revenues in 2007, up from six percent in 2004. In 2007, the home video market was estimated to be Rs 7.5 billion.
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written by linxiong, January 24, 2011
written by nfl football jerseys, October 12, 2010
Hope visiting this page will grab your trust, all anyone really wants is a trustworthy supplier who they can count on to deliver on quickly, correctly, and top quality every time!
written by shoaib, October 02, 2010
written by Live Watch Tv On Your PC, September 27, 2010
Cheers!
Robin
written by adolf, July 06, 2010
written by KP, June 01, 2010
Lets take example of seventymm, for delivery customer is on delivery boy's mercy. They have a fixed time for your area. If you are there, than its good, else they will not deliver the movie. Quality of movies is another major concern, many times its worse than the pirated one. Rugged, highly used and corrupted are the words I can use for describing the quality of CD/DVD delivered.
Service wise, customer service is not enough equiped to assist you. What they ensure you, is not necessary they do at the back end.While adevrtising their any service/package, they never reveal complete information, specially informations related to refund, in case you are not satisfied with service, or anything which can make your decision megative. Al those information is revealed later when to chase them in case of any problem.
written by kinomaniacs, May 01, 2009
written by shruthi, April 17, 2009
written by sonypinto, April 16, 2009
written by pavithra, April 13, 2009
written by pavithra, April 13, 2009
written by abhi, February 17, 2009
written by Ankur Bhatnagar, January 17, 2009
This is a detailed well written article on movie rental. It would be interesting to know how today's customers view this business. I, for one, have used Seventymm and I can tell you that their service sucks. I am now not so inclined to try out any other rental service.
Ankur
written by Suresh Mansharamani, October 15, 2008
We had been interviewed by many journalists in the past but no one has covered the industry in such depths.This shows your hard work.It was pleasure replying your many emails but and the result is very good,All the best for your future endeviours.
Suresh Mansharamani
President
MovieMart
written by Pallavi Deshmukh, October 15, 2008
It is good to have a awareness articles on business as such. Online Movie Rental industry contributes to the media and entertainment industry in a big way. The current size of the industry stands at around Rs 1200 crore, where more than 50% of the DVD rental bsuiness is contributed by the rental business.
written by prerna, October 01, 2008
written by Ankit Verma, September 29, 2008
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