Moser Baer set to enter Karnataka Home Video market with 101 Kannada Titles

Moser Baer India Ltd has announced that it would soon launch a new initiative in content distribution in Bengaluru, which would mark the extension of the Company’s maiden foray into the entertainment industry through the Indian home video market in Karnataka. It may be recalled that the Moser Baer Home Entertainment division was announced in December 2006 to an appreciative market. On January 10, the Company launched over 101 Tamil titles in Tamil Nadu, a move which has been receiving overwhelming response from customers all over the state. On January 31, the Company announced its entry into Malayalam market with 101 Malayalam titles.

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 the Company 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 the Company to revolutionize the quality-price parity and offer unprecedented value for the consumers.

The Company will soon launch two new super hit Kannada films - MALLA, staring Crazy Star V Ravichandran and AHAM PREMASMl, starring V Balaji, in both VCD and DVD formats. The Company also plans to launch 100 other titles from its library of over 600 Kannada titles, both from catalogue as sell as new films. This is the first time that a launch of such an unprecedented scale of titles will take place in Karnataka. While all the titles will be introduced in VCD format, 18 key titles are planned to be introduced in DVD format also.

V Ravichandran will be releasing the new Kannada titles and will also unveil the entire catalogue range display shelf, which will be installed at key retail outlets by the Company.

The distribution of the titles is intended to reach almost every movie enthusiast in the state and to this end the Company has already lined up 26 distributors in Karnataka and stocks shall be available immediately in around 3,000 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 February 15.

The Company'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, Harish Dayani, CEO Entertainment Business, said "This initiative represents an excellent opportunity to leverage our optical media strengths in patented and proprietary technology, capacity and costs enabling us to offering high quality titles at very attractive price points between Rs 28 - Rs 34 for VCD / DVD. I believe that at these price points, we will redefine the home video market in India."

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 recent 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, Kannada, 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. One such branded outlet was already inaugurated and functioning at Puducherry.

Source : Equity Bulls

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