Moser Baer forays into entertainment space, enters Home Video market

Moser Baer India Ltd on December 21, 2006, has announced its launch of a new initiative in content distribution, which would mark the company’s maiden foray into the entertainment industry through the Indian home video market. Headquartered in Mumbai, with presence across the country in all major metros as well as in smaller towns through an active and well organized three-tiered channel, this move will take advantage of the established Company's production capability and a well developed distribution network. The company will release video content on DVD and Video CD formats using its proprietary and patented technology which enhances quality and significantly reduces cost. This will enable the Company to revolutionize the quality-price parity and offer unprecedented value for the consumers.

The Company’s new division is in final negotiations to acquire copyrights / exclusive license of more than 7000 titles in all major Indian languages which comprises a third of all movies produced till date in India. With world-class tamper-proof packaging, wide distribution reach and global quality production standards in each product, customers will be given a compelling value proposition which has hitherto fore not been seen in India.

According to Yogesh Mathur, Group CFO, of the Company, "This initiative represent an excellent opportunity to leverage our optical media strengths in patented and proprietary technology, capacity and costs enabling us to offering high quality titles at very attractive price points between Rs 28 - Rs 34 for VCD / DVD. I believe that at these price points we will redefine the home video market in India."

The Indian home video market has not grown at the pace that it should have considering the fact that India is the world’s largest producer and consumer of films. Rampant piracy and high fragmentation in this business have unfortunately impacted the industry.

According to research, India has over 26 million DVD / VCD users, growing at a healthy clip of over 25%, and comprising about a fourth of all TV ownership in the country. Despite the huge potential market, home video accounts for a mere 7% of the total film revenues of Rs 7,900 crore. The US home video market is almost the same revenue size as that of the theatrical market.

The new initiative will release titles in Hindi, Tamil, Telugu, Malayalam, Kannada, Bhojpuri, Marathi, Bengali, Gujarati and Punjabi languages. With 18 CFAs, 400 distributors and a dedicated sales force, this division will also set up owned and branded outlets at about 300 locations in addition to its alliances with large format stores.

Source : Equity Bulls

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