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Ramesh
and Priya work in a major Indian software firm based in Bangalore.
The couple hardly finds time for entertainment, thanks to
their fast paced life. But even if they manage to wriggle
out some timelike on Saturdays and Sundaysbig queues in front
of ticket windows dampen their spirits and make them forgo
their favorite movies. The couple, therefore, seems to have
almost given up the idea of visiting movie theaters. The next
door video parlor too doesn't seem to excite the couple, as
the shop is not only full of either pirated copies or poor
quality VCDs/DVDs but the charges are also very high for new
VCDs/DVDs. However, all this is going to change very soon
if a firm called Seventymm has its way. The Bangalore-based
online movie rental firm, which models itself on the lines
of America's hugely popular Netflix, has already made a beginning
in this direction.
Promoted
by Raghav Kher, an ex-Microsoft hand and a serial entrepreneur,
India's very own online movie rental firm aims to capitalize
on the shift in consumer preferences to home entertainment,
which has seen sales of home theater systems and DVD players
rising significantly in recent times. The firm which began
its operations in Bangalore in March 2006, plans to expand
its operations to other major cities of the country like Mumbai,
Kolkata, Chennai and Hyderabad in the next few years as it
sets itself an ambitious target of generating revenues of
Rs. 500 cr and one million customers in the next five years.
The initial response so far has been good, as its virile marketing
and other promotional efforts have helped it sign on 3,000
customers in the first month of its operation.
However,
selling and staying profitably may not be easy for such businesses,
given factors like low penetration of home video systems and
competition from TV channels, not to mention the threat from
video-on-demand service as and when it arrives in the country. |
