The row between multiplexes and film producers has left cinema-goers devoid of entertainment. According to a report by Angel Research, the multiplex industry is likely to see a drop of 30-50% in revenues during 1QFY2010 due to the ongoing strike called by the producers and the consequent delays in movie releases. However, analysts feel that this may have given an unprecedented boost to the DVD and home video rental market in the country.
As per a Ficci-KPMG study, the size of the home-video industry was estimated at Rs 863 crore in the first half of 2008. The size of the legitimate organised sector of the movie rental service is pegged at Rs 800 crore. Film analyst Vinod Mirani, said, ?The home entertainment segment will experience a growth due to the revenue sharing tiff between producers and multiplexes. Video rental libraries as well as home video companies will surely benefit from the strike.?
Players like the Reliance BIG Entertainment owned online and offline movie rental service- BigFlix.com experienced an increase in demand of almost 15% due to the lack of new Hindi film releases. The company has a consumer base of around 80,000 patrons. Kamal Gianchandani, COO, Bigflix.com mentioned, ?The ongoing strike has undoubtedly helped us garner good business. However, the period between April to September is the time when there is an upswing in the business of filmed entertainment due to the summer vacations. We are thus lucky to be undergoing this upward momentum right in the beginning of the holiday season.?
Movie rental service Seventymm claims that the demand for movies during this season has shot up by almost 25%. The company acquires a market share of 60% with 1,20,000 customers pan India . Raghav Kher, CEO, Seventymm said, ?We have been acquiring new customers due to the problem between the film producers and multiplexes. While earlier our clients would rent up to 3 movies every week now they would hire almost 5 films.? He further hoped that the strike gets resolved soon as the DVD business will grow only if there are new releases that will initially do well at the theatres.
There has also been an increase in the demand for alternative content. Hiren Gada, director, Shemaroo Entertainment Ltd said, ?Our DVD sales have increased by 30% to 40% due to the lack of new releases. Thanks to the Indian Premiere League (IPL) matches, sports content is in huge demand.?