We have discussed some of these ideas on venturewoods before, but I thought I would get more specific thoughts. We are seeing more and more businesses around the theme to offer a $100 a year service to a million users. Few ideas that have got discussed here include:
1. Online DVD rentals
2. Online photo printing
3. Online tutoring (export oriented – ok more like 100k x $1000 here)
What are the views around feasibility and scale on some of these? Will these land up being more like 100k x $ 30 plans in the online context? Given that 5-10 startups are starting out at the same time, will the market fragmentation be too high?
Any other ideas that might fall in this conceptual framework?
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Online DVD is really a good Idea.
I think we have to shed out of lot of money on Liscensing fee.
Not sure , anyone can confirm.
Do a liscence is required in INDIA for renting?
Regs
Martinet
We have a solution to the network thing.Was looking at consumption of media through the internet, esp. desi soaps over internet.The Comcasts and other players do not offer the long tail and have higher rate fixed subscription – mediocre content.But the bottlenecks we are facing have been typically on convincing copyrights for content.Anybody form the Media groups who wants to pitch in?? Yes there is more to it.. but one of the crux for drawing revenues.
Drop me a line if anyone here can bridge that Gap!
Does online DVD rental make sound sense in the face of Telco’s and broadcasters deploying video on demand services on mulitple platforms (mobile, IPTV, PC) ? These services are being deployed, or scheduled for deployment in Europe and East Asia. Time will tell if the economics work for this business model, but there is a clear threat (and downward pressure on profit margins) to any incumbent model relying on physical distribution of DVDs, rather than electronic distribution.
Of course, with the right partnership agreements, there’s no reason why an online DVD distribution business could not establish a brand identity and also offer movies for purchase and download. 2007 will see video over the internet really kick in – more so than the clips you can download of YouTube / Google . . . . . Google Video Advertising anyone?
Also, there’s an IT development house in Bangalore that can already sell you the entire IT infrastructure to operate a DVD e-commerce “business in a box”. Just add management.
Ciao from Cambridge (UK).
Moser Baer’s announcement of Indian film DVDs to be sold at Rs. 38 will change the whole online DVD rental business opportunity! Why would I want to rent when I can buy? Also any kind of remote delivery, whether by courier or hand delivery will have a COST of AT LEAST Rs. 5-10 on the logistics portion.
Will be interesting to see seventymm’s strategy in the face of this development.