Nimbus’ Big Bang Entry Into DVD Rental Biz Round The Corner
Nimbus Communications seems to be close to the launch of their DVD rental service. The company plans to set up 125 DVD stores in 69 cities in the next few months, according to a report in Business Standard. The DVD requests are made via toll-free phone. They also plan to deliver DVD within 30 minutes from the request is made (which is done through a toll-free number). If they don’t deliver in 30 minutes, then the DVD rental is free a la Dominos Pizza.
Nimbus is investing Rs 50-70 crore in the new business, at about Rs 50 lakh a store. It’s not clear if Nimbus has an internet model too.
Nimbus’ entry into DVD rental business can unsettle the fledgling market a little bit. Currently, Seventymm.com is a significant player with presence in Bangalore, Mumbai and Delhi (Note: I am a member of Seventymm since they have titles in regional languages too besides English and Hindi). Madhouse and Cinesprite operate in Delhi and NCR region.
Blockbuster in US (online rental and retail stores) was trying hard and long to counter Netflix's online-only approach. They first started out with a plan similar to Netflix. However, Netflix had a much better hold on the online rental market and a better DVD collection. After several tries, Blockbuster seems to have found the killer approach to crush competition from Netflix.
A B'buster user can now order online and doesnt need to return via mail only. They can drop it at local retail store and get a new rental from the local retail store. So, finally, they're leveraging the power of their retail presence – one that Netflix doesnt have. And this new model seems to have become very,very popular.
How does the above fit into the context of the article above – Well, if Nimbus is opening retail stores, then I wont be surprised if they follow a model similar to B'buster approach. If thats the case, 70mm and others better start taking proactive actions.
I completely agree with Pranav.
I have seen a similar thing in Australia. Blockbuster, VideoEzy all of them following the same model. But BigPond Movies have taken a very big slice of the market. BigPond Movies now offer "Movies to be downloaded" and watch on TV, so no paperwork. This has been extremely useful.
Since the broadband speeds in India are not high, i think a US blockbuster model in India would work.
Regards,
Krishna