According to FICCI the Indian Home Entertainment & Music industry is expected to grow at a rate of 17% YoY and reach INR 11,570 cr by 2012.
Today we will look into the Home Video Market which has been growing at 30% and contributes about 9% to the overall E&M industry. The Home Video rental market in India is still very fragmented and offers tremendous scope for modern retailers.
We have video libraries such as Cinema Paradiso operating through physical store format and several players like BigFlix, SeventyMM, MovieMart operating online stores and Home Delivery.
Cinema Paradiso operates in the cities of Hyderabad, Pune, Cochin, Chennai, Bangalore, Kolkata and Coimbatore. MovieMart, the online rental library is looking at expanding into Tier-II cities such as Surat, Jaipur, Bhopal and Coimbatore because of the huge demand for original movie titles. MovieMart believes that the ideal way to survive is to facilitate selling, renting offline and online. The young audience prefer online format while the older folks opt for store.
BigFlix part of the Reliance ADAG is embarking on Internet to reach Tier-II and Tier-III cities as they offer huge potential. BigFlix also plans to reach 500 outlets from its current 110. They eventually want to shift the platform from offline to online. It is already witnessing a shift of 60% from offline to online. BigFlix is also targeting the NRI customer with Online Movie Downloads protected by DRM.
Blue Ray DVDs for the Rich Consumer Experience:
You will have consumers who spend upwards of INR 100,000 in setting up their LCD TV with Bose Home Theater system. They will definitely look for movies recorded on HD-DVD for ultimate entertainment experience.
Threat from DTH / IPTV Operators ?
DTH / IPTV operators has a good reach and is providing Video on Demand. However, they hit a roadblock as they don’t have the huge collection of movies from Hollywood to Bollywood / other International content for the customer and hence these retail chains dismiss DTH / IPTV operators as big competitors.