Moser Baer enters Chennai Home Video market with 101 Tamil Titles

Moser Baer India Ltd on January 10, 2007 has announced its launch of a new initiative in content distribution in Chennai, which would mark the extension of the Company's maiden foray into the entertainment industry through the Indian home video market. The Moser Baer Home Entertainment division was announced in December 2006 to an appreciative market.

The division based out of Mumbai, with presence across the country in all major metros as well as in smaller towns through an active and well-organized three-tiered channel, this move will take advantage of the established Moser Baer production capability and a well developed distribution network. The Company will release video content on DVD and Video CD formats using its proprietary and patented technology which enhances quality and significantly reduces cost. This will enable Moser Baer to revolutionize the quality-price parity and offer unprecedented value for the consumers.

The launch in Chennai is full-fledged with living legend, "Ulaga Nayagan" Kamal Haasan launching the first title of the over 101 Tamil titles at the event. These titles come from a library of over 1,000 titles, both from catalogue and also some new films. This is the first time that a launch of such an unprecedented scale of titles is happening in Tamil Nadu. While all the titles are being introduced in VCD format, 12 key titles are introduced in DVD format. On this occasion, the Company is also launching a new hit Tamil film - Ullam Ketkume in both VCD and DVD format.

Kamal Haasan will be releasing the first title and will also unveil the entire catalogue range display shelf which will be installed at key retail outlets by Moser Baer.

The launch in Tamil Nadu will be followed by Moser Baer opening its first Franchise outlet at Puducherry on January 11, 2007, where the Chief Minister of Puducherry, Hon'ble Rangasamy will grace the occasion to inaugurate the shop and commence the billing.

The distribution of the titles will be intended to reach almost every movie enthusiast in the state and to this end the Company has already lined up 41 distributors in Tamil Nadu and stocks shall be available immediately in around 7,000 outlets to begin with. This number is stated to keep increasing as the Company increases its reach in the state. In order to make the people aware of this tremendous and unique opportunity, the Company will be advertising the concept of low cost, original VCDs and DVDs in local TV channels and press starting from Pongal festival.

Moser Baer's new division is in final negotiations to acquire copyrights / exclusive license of more than 7000 titles in all major Indian languages which comprises a third of all movies produced till date in India. With world-class packaging, wide distribution reach and global quality production standards in each product, customers will be given a compelling value proposition which has hitherto fore not been seen in India.

Speaking on the occasion, Ratul Puri, ED, of the Company, said, "This initiative is poised to bring a paradigm change in the home video market in Chennai. We clearly recognize the tremendous opportunity here and the place of the Tamil cinema in not only the Indian but the global arena is a widely accepted and applauded fact. We believe this will lead to much higher consumption of content on home video, and encourage people to build libraries. We have planned distribution to reach virtually every town where there is a movie loving family. Our rich library, world-class packaging and production, and unbeatable value propositions for customers will surely propel Moser Baer and this new venture into the top end of the market in a very short time."

The Indian home video market has not grown at the pace that it should have considering the fact that India is the world's largest producer and consumer of films. Rampant piracy and high fragmentation in this business have unfortunately impacted the industry.

According to research, India has over 26 million DVD / VCD users, growing at a healthy clip of over 25%, and comprising about a fourth of all TV ownership in the country, Despite the huge, potential market, home video accounts for a mere 7% of the total film revenues of Rs 7,900 crore. The US home video market is almost the same revenue size as that of the theatrical market.

The new initiative will release titles in Hindi, Tamil, Telugu, Malayalam, Kannada, Bhojpuri, Marathi, Bengali, Gujarati and Punjabi languages. With 18 CFAs, 400 distributors and a dedicated sales force, this division will also set up owned and branded outlets at about 300 locations in addition to its alliances with large format stores.

Source : Equity Bulls

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