Reliance Entertainment To Launch Home Video Rental Business

You’re reading it here first: ADA Group company Reliance Entertainment has plans to enter the Home Video business, heading which will be Kamal Gyanchandani. Gyanchandani informs me that Reliance’s first step will be to look at the DVD and VCD rental business, for which they are exploring the possibility of launching an online portal as well. Reliance will be doing a pilot launch, for which they are considering Chandigarh, Pune and Hyderabad, but plans for those haven’t been finalized yet. He wouldn’t comment on how much money Reliance Entertainment is investing in this venture. The rental business will be supported by a call center.
Reliance Entertainment has set up a team for his venture with a marketing and film background: Gyanchandani himself was VP at PVR Pictures, and has a background in film distribution, production and exhibition. Jeevan Joshi is heading content team, and he has joined from PVR Cinemas. Rajesh Das comes in from Eros Multimedia. Logistics, which will be key to this business, is being headed by Manosh Bhattacharya, who joins from DHL. Heading the technology side of the business is Sanjeev Singhal, who has joined from the India Today Group.
Readers will remember that Nimbus intends to invest $34 million in the DVD rental business. For Reliance, there will be synergy with their movie business, Adlabs, but one must also bear in mind that Moser Baer has changed the rules of the game by bringing down prices of movies available for purchase to Rs.34 for DVDs and Rs.28 for CDs. Eventually, it will boil down to which Home Video business has which titles to rent and/or sell, and (in case of rentals) the quality of service.

Related:
Nimbus To Invest $34 Million In DVD Rental Business
Delhi Online DVD Rental Company Madhouse Gets $228,000 From Angel Investors
“DVD Rental Market Can Be As Much As $2.4 Billion By 2010″

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