MUMBAI: After distributing 15 Hindi movies,
UTV Software Communications is apparently
exiting the home video business.
company has entered into a strategic alliance
with Moser Baer Entertainment Limited (MBEL),
selling its exclusive home video distribution
rights for 25 movies. UTV has been paid
an undisclosed MG (minimum guarantee) amount
and after a particular threshhold is reached,
it will also enjoy a revenue share with
per the alliance, MBEL will get domestic
rights to UTV's home video catalogue which
comprises 10 Bollywood films. Moser Baer
Entertainment will also get home video rights
to all UTV productions released until mid
The acquisition gives Moser Baer Entertainment
access to premium content from UTV, which
is planning to release 15 new films over
the next six months.
UTV Motion Pictures CEO Siddharth Roy Kapur,
"The home video business in India is
growing significantly and with the kind
of revenue potential it has, it can no longer
be seen as just another ancillary revenue
stream. It makes strategic sense for us
to license home video rights of our films
to a company like Moser Baer Entertainment,
which has particular expertise in this area
and is instrumental in growing the home
video market in the country. This gives
our movies unparalleled access to millions
of potential new viewers."
will also hand over the home video rights
to the slate of world cinema titles it has
acquired. "We will be doing a separate
deal with Moser Baer for world movies in
the first quarter of next year," Kapur
DVDs for the Hindi movies are being priced
at Rs 99. The time window for DVD will vary
between 4-8 weeks of theatrical release.
MBEL CEO Harish Dayani, "Moser Baer's
entertainment business is working towards
the consolidation of the home video space
in India. Our strategy is based on the twin
pillars of affordable prices to curb piracy
and everywhere distribution to drive mass
consumption. UTV has emerged in recent times
as one of the leading studios in the country
and its home video titles add lustre to
our product line. This development further
reinforces our position as the dominant
player in the home video space in India."
Baer has a predominant collection of catalogue
movies. The deal with UTV will help it to
expand widely into new film content.
Baer is also looking at releasing sports
DVDs over the next six months, Dayani adds.