Tuesday, March 11, 2008

Online Movie / download model

It was way back in 2000 when i landed in the US and was stunned to get a feel of video based learning, it was like this...if you had enrolled for a course and if that course was also available to distance education students then you also had the privilege to watch courses you bunked or to listen to those courses again to get the concept. At that time i was so excited to have a feel of this technology and also a kick of using the super fast internet for virtually free. An idea flashed in my mind as to talk to people who may be interested in online download model, so the only name i knew at that time was vinod khosla...because of sun microsystem's popularity and sabeer bhatia...because of hotmail success. Also 2000 was more or less like dotcom model everywhere, by that time i think the investors had a clue of the impending bubble burst. I contacted vinod khosla as i had his email listed on some site. He politely declined saying it was not his domain to invest. So i thought may be i was dumb in proposing this idea. The slowly pre-2005, things have started moving due to internet speeds, Napster, P2P etc. If napster was positioned properly then it could have triggered the movie and season episodes revolution. But somehow no one came up with this. Now there are so many players in the rental and download domain. The latest to jump is bigflicks with a backing of Ambani Brand Name. They have huge access to movie content due to acquisition of Adlabs and also strategic buy outs of many multiplexes in the US. So it makes sense for them to be in rental business and online download model. But it doesnt make sense to price the downloads pegged at around $9.99, if it was priced around $4 or so, it could start the trend as you can get an illegal DVD copy for $1 or $2 a pop, plus $2 for gasoline to go there and pick it up + time spent in driving there = around $5. But $9.99 is too high a price which is like 100% premium for new movies and i dont think anyone wants to pay $4 or $5 for older movies. Another advantage is that 99% of the movies that are getting released are crap and i wouldnt spend even $1 plus 3 hrs of my time to watch the crap. So if Anil Ambani reads this one, he better lower the prices as there are many players in this market and he needs to go for pricing advantage to get the market share. I was surfing the free movies in there, most of them are adult rated ones and is it like a bait to get people used to this site? Very Very very bad move in getting users into this site.

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