Bangalore-based VCD/DVD rental service company Seventymm, which has an advertising budget of Rs 8 crore, coupled with multi-prong brand building strategy, is betting big on the home video space, brushing aside the thread from video-on-demand and pay-per-view services provided by the cable operators and DTH operators.
The home video major, which acquired 100 per cent equity of the New Delhi-based Madhouse recently, is the largest player in the country. The company currently offers more than 15,000 titles in English, Hindi, Tamil, Bengali, Marathi, Kannada, Gujarati, Malayalam, Telugu, Bhojpuri, Oriya, Punjabi and Rajasthani, and has 25,000 members across Bangalore, Delhi, Chandigarh, Mumbai and Chennai. Seventymm is planning to roll out its service in 10 cities by 2007.
“We will present in 10 cities by 2007,” said Raghav Kher, Founder and CEO, Seventymm, after launching the service in Chennai. He added that Seventymm would also consider digital downloading at an appropriate time.
He added, “With the Indian economy on the strong growth curve, the urban lifestyle in India is undergoing a change. People are looking for choice and convenience in every aspect, including watching films. With its unique models designed to provide pleasurable user experience at every stage, Seventymm is a benchmark service offering in this area.”
With DVD player penetration growing explosively with one million DVD players being sold every month, and with the gap between theatrical and video release of movies shrinking rapidly, the home video industry is poised for rapid growth, Kher said.
Sevenymm heralded organised movie rental service in India and is constantly setting industry standards in this relatively nascent but fast-evolving segment. The Indian entertainment and media industry is growing at 18 per cent annually and will reach the one trillion mark by the year 2011 from the current Rs 437 billion, said Kher quoting from FICCI-PricewaterhouseCoopers 2007 report. He added that the corporatisation of the industry and the home video section will play a major role in this growth.
According to Kher, the Indian home video market is worth Rs 800 crore, with organised players accounting for Rs 400 crore. With the entry of heavyweights such as the Anil Ambani-promoted ADAG, and Nimbus, the home video industry is expected to witness exponential growth in the coming months.