Television

Pyramid Saimira, Moser Baer in deal for home video market

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MUMBAI: Cinema chain operator Pyramid Saimira Theatre has entered into a strategic alliance with Moser Baer India for exploiting revenues from the home video market.

Under the arrangement, Moser Baer's range of home video titles will be available at all the theatres owned or managed by Pyramid Saimira. "The space cost will be taken care by us while Moser Baer will spend on furnishing the shops where the home video products will be sold. They will be able to reach out to more consumers through this retail chain," says Pyramid Saimira Theatre managing director PS Saminathan.

Pyramid Saimira will also allow its new films for Moser Baer to release in the home video format after a short window period. The plan is to release 100 films in South India across the country. Moser Baer will kick off by releasing Pyramid's new Tamil film Mozhi (released on 23 February). "The window period will be drastically reduced and our films can be available on Moser Baer's home video after one month of theatrical release. We believe we can get huge volumes as the DVDs are to be priced at Rs 34," says Saminathan.

Adds Moser Baer CEO, entertainment business, Harish Dayani, "This strategic tie up offers an excellent opportunity to increase our retail presence and availability. We are delighted that Pyramid Saimira Theatre is going to offer their new Tamil film content in home video format for the first time within a short period of releasing the film in the theatre."

The profit will be split equally between the two companies. This will include revenue generated from advertisement in VCDs and DVDs. The availability of DVDs at such low prices is aimed at killing the piracy market while also expanding the home video segment.

Pyramid Saimira has also agreed to release films produced or distributed by Moser Baer in its theatres. Currently Pyramid has 255 screens in 225 locations.

"Under the strategic alliance if we manage to generate volumes in the home video segment, we hope to add Rs 500 million to our bottomline every year without any increase in costs. While we take the content risk, they run the expenses for production of DVDs," says Saminathan.

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