BUSINESS

Moser Baer steps into film distribution

May 26, 2007
 After setting the home video market afire with dirt-cheap VCDs and DVDs, Moser Baer is spreading its wings in the business by getting into distribution of films.

The company has acquired the rights for three Hollywood movies - Disney's animation flick Air Bud, Ten Commandments and Righteous Kill - all slated for release this year.

The rights include theatrical distribution rights, satellite distribution rights, as also home video rights for all SAARC countries.

Moser Baer wanted to acquire only the home video rights for the three films, but was told by the production studios that the rights would be available only in a package.

"The movies were available at an attractive price and that is why we struck the deal," Moser Baer Entertainment CEO Harish Dayani said.

The company would look for the distribution rights of more such films in the future, he added.

The company is believed to be paying the Hollywood studios around 20 percent royalty on sales. Dayani said Moser Baer will earn 50 percent of its revenues from theatrical rights, while satellite and home video rights will contribute 30 percent and 20 percent, respectively.

Moser Baer entered the business last December causing worry to existing home video players because of its low prices.

Moser Baer is offering older films at Rs 34 for a DVD and Rs 28 for a VCD and has promised the same prices for new titles as well.

Currently, it has 7,000 film titles out of which 1,500 are hindi titles and around 600 are Hollywood titles. While Moser Baer has released 74 hindi titles so far, it has not yet released its Hollywood movie catalogue.

 

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