The company expects to achieve $50-60 million of revenues in the current fiscal its entertainment business. During the quarter, the company continued its pan-India rollout and launched its products in Andhra Pradesh and completed the national rollout with the launch in West Bengal. With copyrights/exclusive licenses of over 7,500 titles, the company is the largest content owner in the home entertainment business and the only company with a pan India presence across all major language.

As part of its business strategy of building a three-tiered channel, the company has lined up 21 C&FAs, 450 distributors across the entire country and its products are now available in over 100,000 outlets, including stationery shops, telecom shops and regular audio and video outlets. The company plans to acquire more titles in the coming quarters.

Moser Baer India entertainment business CEO Harish Dayani said, “We have recently successfully completed the pan-India launch of our business. The success of the business model is becoming evident as we continue to see demand far higher than anticipated. While the business has started contributing to revenues, we are very confident that the business will start significantly contributing to the Company’s profitability by the end of the fiscal year.”

Currently the Indian home video accounts for a mere eight per cent of the total film revenues of Rs 84.50 billion (Rs 8,450 crore), which is low compared to global standards. The US home video market is almost double the size of the theatrical market with revenues of over $ 16.7 billion. According to the FICCI-PwC report on the Indian Entertainment and Media industry, the home video market shows the maximum potential in terms of growth rates among the various segments. The home video market grew a whopping 63 per cent from 2005 to touch the Rs 6.5 billion mark. This segment is expected to make a continually increasing contribution to the total revenues earned by the Indian film industry and expected to grow at a CAGR of 31 per cent to Rs 25 billion by 2011.

Moser Baer’s entertainment division is also looking at various selective opportunities in areas like content creation including non-film content, content distribution in other than physical forms like digital distribution and content aggregation and syndication, and explore possibilities to launch home video products in the overseas markets. 

The company is to spend $100 million in capex over the next three years on the entertainment business.