The Reliance Anil Dhirubhai Ambani Group is poised to take another leap forward in the film arena with the launch of BigFlicks.com and its soon-to-be-launched video retail business, which works on the lines of the US video rental distribution network, Blockbuster.
Kamal Gianchandani, COO, home entertainment, Reliance Entertainment, talks to Aminah Sheikh on the company's game plan. Excerpts:
Your company plans to adopt the subscription model for the DVD/VCD rental business. Tell us how the model will work?
Customers will have to register to avail of the service. We are in the process of structuring various packages. As of now, we have thought of two plans.
In the first plan, customers can rent a DVD for a maximum of 30 days and in the second plan, one can rent two DVDs.
The price points can vary from Rs 200 to Rs 275 for the one-DVD plan and between Rs 350 and Rs 425 for the two-DVD plan. The price points are likely to vary from city to city. For instance, in Mumbai, the prices may be high by Rs 20.
How long will it take for you to deliver the DVDs from the time one places the order via SMS or by calling up the call centre?
In 90 per cent of the cases, it will take four hours, while it will take six to eight hours for the rest.
Are you in talks with broadcasters and do they include Zoom and NDTV?
Yes, we are talking to all leading broadcasters, including Zoom and NDTV, for them to air their show on the BigFlicks platform. Apart from that, we will create original content via Adlabs Films, Big Entertainment and Adlabs Synergy.
Will all stores be operated by Reliance Entertainment or will you consider franchising?
Initially, we will operate the stores. We will leverage on our other entertainment entities such as Zapak's outlets, Reliance WebWorlds, where we will house a separate space adjacent to each other.
In the future, we will look at franchising.
What percentage of revenues do you expect from the online rentals and stores?
Even though BigFlicks has been launched prior to the rental stores, its contribution initially will be 30 per cent, while rentals will contribute 70 per cent. This will change and, going forward, the stores will contribute 40 per cent, while 60 per cent will come from the portal.
What is the revenue model for BigFlicks.com?
While downloading to own and rent is at a charge, streaming is free of cost. The revenues, in case of the streaming option, will come from advertisements. We are looking at advertisements in two ways - pre-roll and post-roll.
In the pre-roll model brands, can advertise before the streaming begins and once the ad is complete, the streaming of the film begins. In post-roll, the ad will be shown in the middle of the film. In a three-hour film, we are looking at selling not more than 2-2.5 minutes of commercial time.