Nimbus Communications, the broadcasting, advertising and sports rights management company, is planning to enter the fast growing and lucrative DVD rental business. Insiders claim that Nimbus is trying to replicate the Hollywood video rental retail chain with membership programme.
The company is in talks with standalone mom-and-pop DVD rental libraries to work out an arrangement because of the high real estate entry costs to setup a chain on its own. Nimbus is also looking at setting up video entertainment lounges that will integrate video rental with the video on demand.
Madhouse Online DVD rental company has a mixed model [online / offline] which Nimbus is trying to copy. The DVD rental market is expected to touch Rs 2100 crores in the next 4 years.
However, disruptive technologies like DTH and IPTV may eliminate the need of DVD rental retailers.