Moser Baer Entertainment (MBEL), the wholly-owned subsidiary of optical disc maker Moser Baer, is employing new distribution methods for greater market penetration and devising innovative methods to distribute its film content.
The company is looking at acquiring content (most of it comprising new releases) “as long as it is at the right value proposition — between Rs 5 crore and Rs 25 crore”.
“Last year, content prices got overheated and we did not, at that stage, think the content pricing was right. But now, pricing is at levels where we feel we can acquire it,” said Harish Dayani, chief executive (Entertainment Divison), Moser Baer.
The company also plans to acquire more international titles this year besides releasing the 3,000 remaining titles of the total 10,000 acquired this year.
Besides, MBEL is creating a brand called Super DVD. Under the initiative, three movies will be packed in one DVD. It is also planning to open more exclusive entertainment outlets. It already has 15 such outlets in Chennai, Hyderabad, Cochin, Ahmedabad, Delhi, Kolkata, Patna, Pondicherry, Rampur and Bhubaneswar.
Is the business profitable for the company? Analysts believe it is. Experts note that to become a Rs 250 crore business firm in 18 months is a “big thing”. MBEL contributes around 10 per cent to the group’s total revenues. “To acquire UTV Motion Pictures’ home video distribution business for Rs 18 crore in these market conditions shows the stability of this business,” said an analyst.
“Moser Baer’s model is based on driving volumes through better prices and it seems to be working for them. Home video is a big business the world over and the filmed entertainment sector is estimated to have grown at a compound annual growth rate of 17.7 per cent over the past three years,” said Rajesh Jain, head, Information, Communication and Entertainment, KPMG India.
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“Because of the attractive prices, Moser Baer VCDs and DVDs are a hit among people. Infact, the latest releases, Dev D and Oye Lucky! Lucky Oye, are selling like hot cakes,” said a well-known music shop owner who did not wish to be named.
Industry experts say that MBEL is not only the number one player in the home entertainment business but has also stopped players like Nimbus, Hungama and Balaji Telefilms from entering this market. Jain reasons that it is important to accumulate a good library in this business and MBEL has that. Though its direct competitors are local rental businesses and Big TV, MBEL is still maintaining the numero uno position.
However, the business, which is facing a tough challenge from piracy, has found a solution in shortening the release window between theatre and home video releases. “We plan to shorten the time between theatrical and DVD releases from six-eight weeks to about two weeks. It used to be several months earlier. We have been releasing the films to which we have home video rights six to eight weeks after their theatrical releases but we plan to continue to further narrow this gap and expect it to shrink to two weeks or so,” said Dayani.
To counter the problem of piracy, MBEL has formed the Indian Cinema Rights Association along with Eros Entertainment, Yashraj Films and Reliance, among others, to keep an eye on the market and conduct raids on those indulging in piracy. With this, the company feels it will be able to fulfil its vision, which is to wean consumers away from pirated products to original products, and to offer Hollywood quality DVDs and VCDs at price points that help eliminate piracy.