Reliance Entertainment To Invest $100 Million In Home Video Business

We had broken the story about Reliance Entertainment entering the home video business almost a month ago. Now the Economic Times reports that Reliance plans to invest $100 million in the business over the next three years. Reliance plans to launch in June in Chandigarh, Hyderabad and Pune, and take the franchisee route to market. Reliance also has plans for a website, and might even allow movie downloads. We’ve got much more here.
The launch seems to have been delayed, since as per information with ContentSutra, it was expected around the first of May, not June. Additionally, we’ve learnt that Reliance is looking at a chain of company owned retails stores of 500-2500 sq ft in size, in residential hubs. The plan is to launch around 350 stores in the top 30 cities. I wonder if they’re considering expanding their Reliance World outlets, and using those for their consolidated businesses – Zapak cafes, home video rentals, and cybercafe and mobile services.
Speaking earlier to ContentSutra, head of Reliance’s home video business, Kamal Gyanchandani had said Reliance would initially be looking at the DVD and VCD rental business, as opposed to sales.
With that kind of money being ploughed into the home video rental/sale businesses by the likes of Moser Baer, Reliance ADA Group and Nimbus, what will become of DVD rental businesses of the likes of SeventyMM, Madhouse, Cinesprite and Catchflix? Well, if you can’t beat ‘em, join em! They’ve spent time establishing a distribution network, and could offer their distribution services to the larger players.
Related:
Reliance Entertainment To Launch Home Video Rental Business
“DVD Rental Market Can Be As Much As $2.4 Billion By 2010

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