Online Movie Rental Services : Seventymm and MovieMart to Expand
Online movie rental service market is going strong and both Seventymm and MovieMart.in are expanding their services to smaller cities in India.
Seventymm 
- 70,000 customers and plans to reach 4 million subscribers with revenues to the tune of Rs 1,500 crore in the next five years,
- Plans to spend $15mn in the next 5 years, 40 cities by 2009
- Has raised two rounds of VC funding from Matrix and DFJ
MovieMart
- Currently, it’s present in 300 cities (online) and is looking at entering Tier-2 cities through the franchisee route.
- Planning to set up outlets in Mumbai, Bangalore, Chennai and Kolkata,
- Targeting revenues of Rs 400 crore
- Targets customer base of one million in the next five years
- Planning to enter into other verticals like movie downloads on the website, DTH, television software and movie production.
- Is selling DVDs and VCDs online, which are available at 15 per cent discount on MRP.
- Looking for VC funding. [via:1,2]
The movie rental/DVD sales business is seeing lot of creative ideas – like Moser Baer is distributing DVDs on cart, but deep-pocketed players like BigFlix are playing on price point.
Given the thin margin in this business and competition from local stores, distribution is the king when it comes to wider adoption.
What do you think?
Interesting startup: FlickXPress
About the author - Ashish Sinha is a Startup Mentor/Product Strategy Coach, and the founder/chief editor of pluGGd.in.
He has launched/managed couple of products (consumer as well as enterprise) in US and India, and now consults with startups/small businesses on their product/media strategy. He can be reached at: ashish (at) pluGGd.in [+91 98452 06443]
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