Reliance Entertainment To Launch Home Video Rental Business
You’re reading it here first: ADA Group company Reliance Entertainment has plans to enter the Home Video business, heading which will be Kamal Gyanchandani. Gyanchandani informs me that Reliance’s first step will be to look at the DVD and VCD rental business, for which they are exploring the possibility of launching an online portal as well. Reliance will be doing a pilot launch, for which they are considering Chandigarh, Pune and Hyderabad, but plans for those haven’t been finalized yet. He wouldn’t comment on how much money Reliance Entertainment is investing in this venture. The rental business will be supported by a call center.
Reliance Entertainment has set up a team for his venture with a marketing and film background: Gyanchandani himself was VP at PVR Pictures, and has a background in film distribution, production and exhibition. Jeevan Joshi is heading content team, and he has joined from PVR Cinemas. Rajesh Das comes in from Eros Multimedia. Logistics, which will be key to this business, is being headed by Manosh Bhattacharya, who joins from DHL. Heading the technology side of the business is Sanjeev Singhal, who has joined from the India Today Group.
Readers will remember that Nimbus intends to invest $34 million in the DVD rental business. For Reliance, there will be synergy with their movie business, Adlabs, but one must also bear in mind that Moser Baer has changed the rules of the game by bringing down prices of movies available for purchase to Rs.34 for DVDs and Rs.28 for CDs. Eventually, it will boil down to which Home Video business has which titles to rent and/or sell, and (in case of rentals) the quality of service.
Related:
—Nimbus To Invest $34 Million In DVD Rental Business
—Delhi Online DVD Rental Company Madhouse Gets $228,000 From Angel Investors
—“DVD Rental Market Can Be As Much As $2.4 Billion By 2010”
Posted In: Entertainment, Movies, Money
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Comments (11)
Mar 15, 2007 9:27 AM
This is interesting. The DVD rental model which did well for a while in the North America and now the problems are slowly creeping up, is getting traction. I guess the Indian sub-continent will wake up to see the problem soon maybe in the next two years or so. That will give me enough time to try out my business here in US first and then launch it in India.
As it is said, the best way to solve the problem is to let the effected see the negative impact and feel the pain. Then you launch the solution and show the benefits and they will roll-over.
Thx
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Mar 15, 2007 12:42 PM
This is a great news. What has to be observed is the distribution system. Being ADA Group even that can be ruled out as they have 200 to 400 Web World across the country and soon that no. is also going to increase. Although there are few other players in this market like Seventymm.com which is predominently south that too bangalore and to an extent Delhi centric and Clixflix.com which is Mumbai centric with an absolute bad and rude coustomer service and delevery processes (I’m a coustomer myself)
All the best to ADA for the venture and look forward to rent a DVD soon
Mar 17, 2007 2:30 AM
Hey, this is great news, I guess the DVD rental business is going to be organized soon.
BTW I don’t think Seventymm is only south based service as I am a customer of Seventymm, Delhi & I found their services to be quite amazing.
Mar 19, 2007 6:24 AM
DVD Rental biz market seems to be happening as a lot of cos have announced ventures and there are already quite a few start-ups
Mar 19, 2007 6:31 AM
Great news indeed ! But I think the current start-up cos are doing things in a “organised” frame too.
I am a member of Madhouse in Delhi and these guys have a extremely good service and inventory.Also they are doing innovative stuff like sending Instant Popcorn sachets with rented movies and they also have some plans where you get a free dvd player along with the subscription.
Reliance will have do a lot to match up with them in customer experience as that is what is going to be the differentiating factor
Mar 20, 2007 3:10 AM
Looks like there is a lot of business in DVD rentals. We already have Cinesprite & Seventymm in Delhi. I keep reading that there are a lot more to come. But how many ? Now if we compile the list of serious players in the market its Seventymm, Cinesprite, Nimbus (Coming Soon) and Reliance. I feel the day is not far when TATA, Hutch and Bharti will also jump in. Bharti has already announced its plan to enter DTH. Looks like lots for us in this game :)
Mar 21, 2007 2:35 AM
I assume this will work on the hugely popular NetFlix model. Keys to success:
1. Film genre diversity
2. Library size:
- Languages
- cinema - bollywood, hollywood, tollywood, japanese, italian, spanish, french
3. delivery mechanism
- indian post
- designated courier
- speed post
The competition is intense:
1. TV channels
2. Cable Tv
3. Video Rentals
4. Cinemas & Multiplexes
5. Pirated DVD market
The question really is that all this is hygiene. The money question is what they will do to make the service sticky and engaging and ofcourse numero uno in people’s consideration sets.
Mar 21, 2007 8:26 AM
Lots of players entering the market! Great for consumers.
But they still differ with respect to the way they are providing services.
- Clixflix also runs something called “All Access” by which you can order movies by phone, SMS, their Stores or online.
- SeventyMM has spoken about starting Video Downloads.
- FusionRental offers books and DVD rentals
- Madhouse also offers requests by phone
- Nimbus is talking about running a store only model.
Mar 21, 2008 10:06 PM
Great news!
Today’s Newspaper says, Big Flix has started 5 DVD Rental stores in Pune but all of them are in East part of Pune. Not a single store is in Pimpari Chichwad area. The news further says Big Flix is planning to open 500 more stores in 30 cities in country and that’s the reason I am sending this comment.
I have a shop in Pimpari Chichwad area and I can sell it to Big Flix if they are intenting to start DVD Rental Store in this “growing population growing income” area. And I am sure Big Flix will get tremendous response from this province which has limited entertainment around.
I tried for e mail of Big Flix/ Mr. Kamal Gyanchandani but I couldn’t get it so I am writing in this comment box. I will like to write to Big Flix/ Mr. Kamal Gyanchandani if I will get their e mail id.
My e mail id: .(JavaScript must be enabled to view this email address)
May 5, 2008 2:34 AM
sir plz telme i aslo want to joine the reilance moive rental business plz tel me how can i join it
mail me .(JavaScript must be enabled to view this email address)
.(JavaScript must be enabled to view this email address) ok mail me
May 25, 2008 1:05 PM
You are right, as marketing specialist in dvd rental industry I have to say that during recent months most of the rental services were launched outside of USA. Since alot of business ideas come from US as well as some investment I really noticed bulk opening in Brazil video game rental services, Singapure rental games service, New Zealand, even Europe goes to rental market and specially local stores! Its easy to manage rentals from office to save some money for inventory with the help of online dvd rental software. Thats why when you open your own dvd/video game rental business you are always suppose to remember that the key of the success is the right choice of the software. You have to make sure that video game/dvd rental software you are running absolutely secure, powerful, stable and ready to grow together with your business. Thats why its important to decide what system will suite your business best . Contact our team http://wwww3rent.com, and we will response to any questions you may have about rental business.