Distribution is seemingly the magic sauce of the movie rental business as both Seventymm and Moviemart expand their footprint. Moviemart, earlier relegated to Delhi and the National Capital Region, has expanded its services to 300 cities in India reports Afaqs. Interestingly it has tied up with TNT, the logistics company. A key service differentiation in emulating the Netflix (NSDQ: NFLX) model will be turn-around times, tying up with a logistics company is a neat way of hiving off a supply chain function. Anyone for possible tie-ups with privately held delivery major Vichare? Moviemart claims 10,000 customers currently and aims to reach one million in the next 5 years with an investment of Rs 50 crore in 2 years.
Unlike Moviemart’s offline push, Seventymm plans to be a pure online play. The article states it will invest close to Rs 60 crores targetting four million customers in the next five years with an aim to be in 40 cities by the end of 2009. Apparently they have already pledged Rs 8 crore as adspend in 2008. Fancy customer acquisition predictions in both cases really don’t make sense unless they have been defined, there is a huge difference between having one million repeat customers who rent more per month than 4 million one time acquisitions. We had recently reported another new entrant in the space being Nimbus Communications Showtime in addition to Reliance ADAG’s currently 50 stores in 10 cities strong BigFlix.com.