Caution : This post is not about flixster.com agreement with any online DVD rental company in india. Its to outline how flixster kind of social networking is already in existance and how it can benefit DVD rental companies.
Flixster the new movie rating service based on concept of social networking linking users based on their common liking of movies/actors. This concept is not new and if we talk in terms of web 1.0 and 2.0. 1.0 was IMDB the great database sydnicated by Yahoo movies and many other sites. Web 2.0 is flixster. Though issue remains here why would people register online with them and rate movie whats in for them. Well its idea of create sub-portal for every movie based on user generated content makes it so exciting. From user comments to reviews to quizzes. For movie buff’s this could be one site to collect and share all information on their favourite movie. Once this information is collected it could be sydnicated bt our very own DVD rental organizations to help sell their products which is renting out of the movie.
flixster still doesnt have lot of movie listing but they have created tools which can be used to create the content. Lets see how online DVD rental organizations start take advantage of such initatives.
Doing a search recently to find service which provides online movie ticket booking service in delhi brought me to movietell.co.in. Will the site had unimpressive UI. The ajax widget which help you select theatre and movie timing was pretty cool. Though end of the day were useless keeping in mind didnt connect right to registration page as new customer or ask for login kind of thing.
Important thing for these sites is competition they will be recieving from M-Tickets venture. Though their are issues and still possibility is Movietell kind of model can sustain better in india.
First issues with movietell and how can they improve their business model.
# They need to get UI design more clearer with better presentation
# They are charging 10 Bucx per ticket they got to work out a better model. Example if they are issuing E-Tickets why not sell ad-space on the e-ticket itself. As only 30% content is going to be movie details .Rest 70% can be used for displaying ad’s which can help in keeping the cost down to zero.
# Secondly they can increase the actual volumes and negotiate with cinemas to work on commission basis. Its common to work on 4-5% distribution or printing cost reduction margin basis.
# You can try to go in for a franchisee model where people can goto buy ticket offline from a franchisee who has deposited money at your end. This way you are creating a bigger value chain and pressence pan-india.
# Try not to just concentrate on movie tickets. Get Concerts and sports events also online. As these are mediums still selling via banks etc.
This can be a great model which can surely work if right people for execution are available. If they need help do e-mail me.
With Moset Baer announcing 500 Crore Rupees investment plan to foray into digtal entertainment and distribution business. Its sounds big trouble for Pirated Movies retailers and offcourse our favourite topic of discussion on this blog Online DVD rental companies.
As we have seen most of the DVD companies offering rental with average movie rent out price of INR 50 with INR 38 they have surely send the business managers back to drawing board. As price economics dont support them anymore. Important aspect will be retailing of the DVD’s. If these INR 38 DVD are not easily available in market then whole concept will again tilt in favor of rental companies. Rental companies profit margin also improve with low cost of DVD as compared o existing Movie DVD costing somewhere between 300-400 INR. But substantial cash flow does get effected.
Another point in favor of online DVD Rental companies is the collection as it will be interesting to see how many movie rights can Moser Baer wrestle as license regime in indian film industry is based on old friendship and loyalty. But Moser baer will also be competiting with other Digital Rights Management companies espically those ones backed by people from film industry owning the content.
Moviemart.in is another entrant not covered before at this blog. Just saw an ad in local Delhi Times. The Ad was effective to the point as the name is pretty clear on offering. Talk about importance of naming business.
The site was very clear and decent as it covered a good collection of latest DVD releases and couple of them previously not available with other providers servicing by delivery location. They have a good RSS feed feature using which you can subscribe feed directly keeping updated on latest releases instead visiting site very often.
the pricing model is expensive as compared to other providers. Though one thing would like to know from them is if they are accepting credit card as mode of payment and will be keeping the credit card details on file. Then why are they charging security upfront. I am not sure if netflix and others in US follow similar security deposit scheme.
With advent of dvd rental stores online have been thinking what different could be done in space. Was thinking about introduction of swapping and barter trade. Good for me before suggesting something to my client do my research well.
Found an existing model in the US peerflix.com . They were recently covered by techcrunch and earlier by gigaom too.But my idea was to cover them from indian market perspective. Now why peerflix is not workable in indian scenario
– First of all their doesnt exist significant amount of market which own’s DVD’s
– Secondly in india people which own DVD have mainly the one which are collectors editions which they would like to keep for repeat viewing
– Thirdly in india people would use the medium for exchanging stuff they dont need in order to get newer copies.
As the model has just bombed in american market with just $250,000 worth of revenues. I wonder if it would be suitable for online stores to engage community in similar models in india. The online DVD rental stores still sounds as better model ot follow keeping in mind none player is targeting PAN-Indian pressence due to operational issues. After couple of quarters of operations and if model sees healthy revenue we may witness consolidation in this sector.