Saregama India Ltd has entered into a strategic alliance with MGM Studios, a unit of Metro-Goldwyn-Mayer Inc, to make films of the Hollywood studio available on VCDs and DVDs in India from March 2005. Saregama already has similar tie-ups with other global film production companies such as Paramount, Warner Bros, Universal Pictures, and BBC.
Speaking to newspersons today, Mr Sanjiv Goenka, Vice-Chairman of Saregama India, said that some 100 titles of MGM would be released in India over a 12-month period. These titles would also be dubbed and released in select Indian languages such as Hindi, Tamil and Telugu.
Saregama plans to promote the MGM films in "novel and innovative" ways including having on offer special collectors' edition sets of James Bond films, among other marketing initiatives.
The company hopes to generate incremental business to the tune of Rs 3 crore in 2005-06 by virtue of the tie-up.
According to Mr Goenka, the video segment is increasingly gaining in popularity and the shelf space occupied by VCDs and DVDs in stores such as the Music World chain is on the rise.
If the popularity of DVDs and VCDs is any indication, the shelf space occupied by this segment in such stores would soon go up to 50 per cent in the foreseeable future.
He said that Saregama had plans to produce at least two Hindi films and two Bengali films in 2005-06. The company's proposed rights issue of equity shares is awaiting the SEBI's approval.
During the third quarter ended December 2004, Saregama India recorded a total income of Rs 27.54 crore against Rs 27.21 crore in the corresponding previous period.
It recorded profit before tax of Rs 2.12 crore compared to loss of Rs 7.03 crore earlier.