Reliance Entertainment launches online movies portal

By , agencyfaqs!, Mumbai | In Digital
Last updated : August 30, 2007, operating on the video on demand platform, will offer users the option to download, rent or order Indian movies on the web, in addition to renting or buying them through its retail format

The home

video business just got hotter. Joining the ranks of Netflix abroad and Clixflix in India is Reliance Entertainment's, which has ambitious plans of becoming the world's largest Indian entertainment content library by acquiring more than 2,000 titles in one year. is essentially Reliance's on-demand movie download service. It will offer a range of digital quality Indian movies spanning across languages (Hindi, Marathi, Tamil, Telugu, Punjabi and Kannada), which will be available to either download to own at competitive prices, or for free streaming. The company will also offer rent and subscription services. Home delivery is a given.

The home page
The BigFlicks brand will also be extended in the retail space, with renting/buying facilities in its shops across India. These retail shops will launch in three cities, Hyderabad, Chandigarh and Pune, by September, and in 10 cities by the end of the year, a total of 100 stores. In three years' time, the network will have 5,000 stores.

While Indians in general form the core target group for, initially, the NRI segment will be targeted more aggressively. As is known, this group (25 million NRIs, comprising mainly students and working professionals) is blessed with high broadband penetration and a thirst for Indian content. On the other hand, broadband issues still pose a threat to this kind of model in India.

Admits Kamal Gianchandani, COO,, "For the first one year, we expect our retail (offline) business to do better than the online one in India. But that will reverse with increased broadband penetration and high bandwidths." will also release movies online occasionally. Ramesh Sippy's low-budget venture, 'Fear', will be released on - this will benefit the film in terms of savings on the cost of prints and distribution. A Sachin starrer in Marathi, 'Navra Majha Navsacha', will also be released on the portal.

What definitely hopes to achieve is to partner the Indian film industry, not just for content and revenue sharing, but also in the common goal of wiping out piracy. "By releasing a new movie on the Internet, we are confident of marginalising piracy by offering a legal alternative at compelling price points," says Gianchandani.

Rajesh Sawhney, president, Reliance Entertainment, says, "We have seen that in mature economies, the demand for home entertainment is increasing with the rising income levels of consumers." A typical Hollywood movie generates more revenue through home entertainment than through theatrical distribution, while in India, home entertainment contributes very little to a movie's revenue. "And that is because we lack an effective home entertainment platform, which is a problem we hope to address," he says.

Handling the advertising for will be Law & Kenneth, and a media campaign (including a TVC) is likely to break soon. Reliance has decided to make an investment of US$100 million in over the next five years, and the venture should break even by 2011. The portal will be subscription driven, rather than ad revenue driven.

First Published : August 30, 2007

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