BigFlix.com earns ~80 per cent of its revenue from rental services, while video-on-demand contributes 20% of the revenue.
The service is present in 10 cities, with a subscriber base of 80,000 and will be integrated with Reliance’s DTH service, BigTV (hopefully that will give a boost in user base).
As far as investments are concerned, company plans to invest $100mn in 4 years (~500 crores) and is seeing a break-even timeframe by Q3 2009.
DVD Rental Industry: What are others upto?
- Seventymm raised $12mn from NEA-IUV, has 70,000 customers and is aiming a revenue of Rs. 1500 Crores by 2013.
- MovieMart is targeting one million subscriber base in the next five years and is planning enter into other verticals like movie downloads on the website, DTH, television software and movie production.
The movie rental/DVD sales business is seeing lot of creative ideas – like Moser Baer is distributing DVDs on cart, but deep-pocketed players like BigFlix are playing on price point.
What’s interesting to note is that online distribution isn’t the most optimum mechanism and players are resorting back to the offline ways of doing business.
What’s your opinion on DVD rental business? Have you used BigFlix’s service? Any feedback?