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Clixflix: Sector overview

india Updated: Jul 01, 2008 15:47 IST

By 2012, the size of our country's home video industry will double with 66 million Indian homes having DVD players.

Plain numbers justify the buzz that surrounds the Indian home video market. The sector has grown 30 per cent between 2004 and 2007, according to the latest FICCI-PricewaterhouseCoopers report on the Indian entertainment and media industry. It estimates that the industry's size will double to Rs 1,500 crore by 2012 -- from Rs 750 crore in 2007.

Playing catalyst to this unprecedented upward spiral is the fact that more and more homes are investing in DVD players: the installed base of these contraptions in the country will double to 66 million by the end of 2010, according to iSuppli Group, an electronics industry consultant.

"It is a no-brainer. The upsides of this business are immense," said Parag Kamani, the business head of International Studios, who represents the interests of SaReGaMa, one of the four licensed distributors of home video content. "That's why the Anil Dhirubhai Ambani Group is entering the market with enterprises such as BIGFlix."

Replicating the business model of international leaders such as, many players believe that going online is the way to go. Kamani, however, said that many people in this country would still prefer a brick-and-mortar store. "As long as people are living a manic life, they will not want to wait for 24 hours to get the film they want," said the market pundit. "Also, Internet penetration in this country is rather low. So the closer you are to a customer, the more likely you are to grow further."