Hottest Indian Startups review – MovieMart

“Get the DVD at your doorstep the same day”

The DVD rental market in India is expected to touch 2100 crore by 2010. DVD sales market in India is expected to touch 2000 crore by 2010. Current market is at 800 crore. With 15000+ DVD titles MovieMart, India’s first online rental company is planning to take 30% of the DVD rental pie. It is also planning to add 1 million subscribers in the next 5 years.

Started in 2006, Rahul Mansharmani co-founder of MovieMart has seen his subscriber base swelling to 10000 in Delhi alone. Buoyed by the great response in Delhi, Rahul expanded aggressively to all over India with the help of TNT logistics. MovieMart now spans across 300 cities and towns in India.

Current revenue stands at 5 crore with an average revenue per customer per month of Rs. 400. With its aggressive plans MovieMart wants a 400 crore revenue in 5 years. To help the revenues it has started selling DVD’s within India and across the borders. DVD’s and CD’s are sold at a discount of 15% to their MRP.

MovieMart is riding high on the following factors:

1. First mover advantage and excellent customer service.
2. Rental DVD costs less than buying a pirated DVD.
3. Largest collection made available online
4. No Queues.
5. Same day delivery (restricted to Delhi)
6. Largest network of 300 cities and a dedicated logistics in TNT

The same day service is restricted to Delhi. Rest of India has to wait for a day or two to get their DVD. This would mean that they couldn’t watch 30 DVD’s per month. Other than the 300-city reach, Moviemart does not have a differentiator to stand up. When you are competing with some of the bigger names like BigFlix you need a differentiator, which cannot be easily duplicated.

MovieMart has a grand vision of reaching to every household in India and provide better service. Their services will not be limited to DVD rentals and sales. They will be trying their luck in DTH, movie production, television software and video downloads. With the increasing broadband speeds, online video streaming could be a good revenue source. With 3G around the corner and the mobile subscribers swelling every month providing mobile downloads and content would not be a bad idea.

Here is a comparison of the 3 movie rental players in India:

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