BIG Plans By Will They Work Out? was the first DVD rentals company that recieved million dollar funding in India. It used that funding to acquire a smaller player like mid last year. We also featured an interview with the founder of madhouse post the acquisition. Now even though it might have made that acquisition has hardly spent any amount of it 10 Million $ funding that it raised from VC’s like Matrix, DFJ and eplanet ventures.


Here is what Seventymm chief operating officer Subhanker Sarker has to say on the proposed usage of the funding,“We have raised around $10 million through separate rounds of venture capital funding led by Matrix Partners India, Draper Fisher Jurvetson and ePlanet Ventures. We will be using this capital for movie acquisitions (a rental license arrangement for one, two or three years) and brand building. The fourth quarter of this year will see an investment of Rs 80-100 million in mass media campaigns, which include both online and offline marketing,”


Well though their plans are BIG.. There is something BIG that is competing with them in the same space. Yes im talking about Reliance Entertainments which recently tied up with NDTV Imagine’s Ramayan. BigFlix itself has taken dual route to this business i.e. dvd rentals and paid online streaming service. Its reported that Reliance ADA will open as many as 500 BigFlix stores by the end of this financial year in around 30 cities apart from franchisee outlets. Reliance World outlets too will house 100 plus BigFlicks stores in the top ten cities. There are plans to tap the overseas market as well.


And its not only Reliance, Nimbus is looking to pump moolah and expand in this market too. Nimbus’ Showtime plans an investment of over Rs 150 crore over the next 3 years. The company plans to open 140 stores in 40 cities in the next one year and hopes to get 500,000-750,000 subscribers in the first year itself! And then there is Moviemart which was earlier present in Delhi and the National Capital Region (NCR), has now launched its services in 300 cities in India and is targetting to reach a customer base of one million in the next five years. Now thats some aggressive plans if you ask me! One f our bloggers has earlier tried to gauge this industry and tried to predict as to what might be its future.


If you ask me Im a little circuspect about this bullishness about dvd rentals. This is because of two reasons one is the audience that is going to be larger is not going to be the home viewing audience by audience on the go! To me entertainment kiosks that let me download movies my pendrive might be a better idea for the future than dvd rentals. Also given the huge infrastrature costs connected with this I hope for these people’s sake this doesn’t meet the fate that most video rentals faced in India. Also one needs to factor in piracy and pirated local players which offer home delivery as well and have little infrastructure costs. In the long run its a very risky business if you ask me! I infact am more upbeat about pay for online streaming and download and mobile videos as and when technology upgrades to support better data transfer and connectivity on mobiles.

4 Responses to “BIG Plans By Will They Work Out?”

  1. raghav soni
    June 28, 2008 at 10:44 pm #

    i take reliance entry in this space as a positive cos competition expands a market….this is what happened in telecom after reliance entry……..the online rental market has a lot of potential in india….cos the middle class population itself is more than 350 millions +……..but i expect lot of price cut measures due to competition…. this in itself would fuel demand ……companies need to understand that india is not U.S so the mentality of people here is to get a thing cheapest….so anyone offering the cheapest solution will conquer the market…..the companies would need to work on these aspects to get on top in this newly competitive market:-
    1.cheapest solution
    2.fastest delivery of method
    3.easy accessibility of ordering
    4.good customer service
    5.great collection with high frequencies of lot

    would soon be covering them in my new post…….

  2. aman oberoi
    June 30, 2008 at 10:16 pm #

    i joined bigflix a month ago and found their service to be way better then seventymm.
    the delivery system of bigflix is fast as compared to seventymm, i usually get all my asked dvds with in 12 hours………
    plus as bigflix’s website says they are also looking to host games in their collection………..and that would be a wow thing……..

  3. Neeta
    August 30, 2008 at 3:26 pm #

    Well to tell you about the latest developments, will have franchise outlets too very soon which will be a part of their expansion plans of having 200 stores in 10 cities by March 09.

    They also have a movie downloads division where they have free streaming option and download to own option as well.


  4. Rajiv
    September 22, 2008 at 3:59 pm #

    with the prices of dvd,vcds now it makes better sense to buy movie. another thing lacking with all the big movie rental players are that they lack quality customer service you ask yoru querry and keep waiting for reply. most of them do not know anything abot films. were as sites such as,,, also ebay sellers are very prifessional and quick to respond. big money can not alone make business,

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