You have already heard that sports broadcasting company Nimbus Communications is entering DVD rental business. Now hear how much the company wants to invest in the business. The company, which plans to deliver DVDs in 30 minutes flat a la Dominos, will “pump in around Rs 150 crore ($34 million)”, Harish Thawani, Chairman and CEO of Nimbus, told Hindustan Times. Nimbus plans to offer some 60,000 movie titles in 56 cities. The company also plans to use tools like SMS, phone-ins and the Internet in the business.
Nimbus’ grand plans can give sleepless nights to scores of online DVD rental companies that have come up in the recent past. Nimbus is heavily funded by private equity (it recently received $125 million from 3i, Cisco and Oman International Fund), and has deeper pockets to invest in the business. In contrast, online DVD rental companies are funded by VCs. The largest investment received by on online DVD rental company is $7 million (Seventymm.com from Matrix Partners India).
Others like Madhouse.in have just received angel funding ($228K from Band of Angels and Mumbai Angels).
The home entertainment business is becoming capital intensive. For instance, another biggie, optical storage maker Moser Baer, is entering the business with low cost DVDs. The space is getting interesting. Meanwhile, enjoy the show.
Source : Contentsutra