With big plans ahead, BigFlix.com allots Rs 25 crore for advertising

The company plans to increase its library from 1,200 to 500 movies besides increasing its offline presence

BigFlix.com, Reliance Entertainment’s online and offline movie rental and video-on-demand service has planned a huge spend on advertising by March 2009. The amount could go up to Rs 25 crore.

Speaking to afaqs!, Kamal Gianchandani, chief operating officer, BigFlix.com says, “Out of Rs 25 crore, Rs 20 crore will be spent in India while the rest Rs 5 crore is allocated for the US market.”

In India, the marketing campaign will be launched in October, which will include TV, outdoor, radio, print and in-cinema advertising. Online marketing including display and search marketing will also be carried out. And in the US, the company plans to use cinema advertising in 200 theatres to promote movie download business.

Comparing the two markets – India and the US, Gianchandani, says, “In India, the movie rental business is prominent, while the video-on-demand business works best in the US.”

BigFlix.com earns 80 per cent of its revenue from rental services, while video-on-demand contributes 20 percent of the revenue.

Video-on-demand is mainly used by NRIs and is available in two options – free video streaming or download to own. In the case of free streaming of videos, BigFlix.com runs pre-roll, mid-roll and post-roll ads; while consumers are charged if they opt to download a movie. BigFlix.com shares the revenue earned through the download services with the content producers or owners.

BigFlix.com currently offers 1,200 movies under its video-on-demand service and is targeting to offer 5,000 movies by March 2009. It is planning to tie up with more content providers for this. It has already has a tie-up with broadcasters such as STAR TV, Zoom, NDTV, NDTV Imagine, Raj TV and Care World TV to showcase their programs for free viewing.

The company also uses display ads on its site to earn revenue. Gianchandani says, “We are targeting revenues of Rs 10 crore from our free movie streaming business and display advertising by March 2009.”

In the case of rental services, BigFlix.com charges a subscription fees to offer movies on rent. It plans to increase its offline presence through stores, aiming to increase its presence in 10 cities from 100 to 200 stores.