when most of the people read this news in economic times about Nimbus looking at blockbuster(One of the worlds biggest DVD rental store chain) as potential partner the blogs covering them talked about trouble for online DVD rental Model and how it will make life difficult. But then i thought most of the negative for Online DVD rental will be negated by offline dvd rental model as with easier local/international content availability on rent people are less to buy/rent pirated copies.
Secondly with Metro’s going for change in how cable TV network providers have to make CAS (conditional access) or Set top box necessary for every cable tv viewer. This will also help in reducing piracy.
DTH strategy to only offer 2-3 movies per week that also the one which have done TV Premiere is also in favor of DVD rental model.
In terms of distribution network model. There is no shame in including reliance webworld or Sify I-Ways in business strategy as drop box/pickup facility can be created for ordered movies as another negative point lot of people talked about was dependency of movies getting delivered by courier people. If lets say you ordered a movie and you are not at home till late. Your movie wont get delivered instant if you would like you can pick it up on way from a sify/reliance web world in your locality. Also a franchise model for sorting dvds and distributing them locally can work out for online dvd rental companies to gain market share. why bring all movies to central city library. If lets say a franchisee in south Delhi is responsible for collection/delivery of all movies locally. if an order from south delhi can be furnished from returned item with him why make inventory come back to master location for re-sorting and order dispatch. This way local level penetration will also increase for DVD rental companies and help create revenue for local level advertising with local distribution/management partner.