| Another session
looked at the business of retail and home entertainment. Sony Pictures Home Entertainment
country manager N. Muthuram noted that there is a 60 per cent DVD penetration
in TV homes in India. The DVD has features like subtitles, language options which
has energised the market. "It is a catalogue driven business. Classic
titles like Sholaty perform well contrary to perception in some quarters that
one the new titles sell. In the US home videos earn thrice as much as theatrical
releases. In fact Sony Pictures has a deal with Steven Seagal and Wesley snipes
for direct to video films. It is also a positive sign that window of release for
videos is falling." He noted the importance of retail in the home video
market in the US. Walmart contributes 50 per cent to the home video business.
He noted that increasingly companies across the globe tie up for home video releases.
An example is in Mexico. There Act II Popcorn did a deal for the home video release
of Spiderman.
The aim was to once again generate excitement
for Spiderman when the sequel was being released theatrically. Act II found
relevance with the product and 42,000 units were sold. In Italy a pizza company
has an association with DVD releases. Basically a DVD comes with a pizza. They
also do a DVD choice of the month initiative. The message is that the consumer
can enjoy the pizza while watching a film. This gives the home entertainment firm
an avenue that would have exited earlier. The retail firm meanwhile gets an extra
hook for its product. In Germany a tie up was done for Terminator
3 between Sony, Sony Electronics and Hatari which had developed a game
based on the game. The good thing was that it was a combined promotional effort.
There was TVC pushing all the three firms. When consumers bought a product there
would be leaflet inside telling them about the other two products. In India the
key challenge is to educate brand marketers about the possibilities in this arena. Saregama
VP and head - films Sweta Agnihotri gave more examples of how synergies work between
DVDs and brands. Motrorola for instance made a phone on Spongebob. Samsung had
done a tie up for the Matrix which was all about having information. Kelloggs
regularly does stuff with Disney. Mitsubishi did a promotion for 2 Fast 2 Furious
where they had kits distributed in their dealership outlets. All this allows
a brand to be associated with famous stars for a relatively less cost. In India
Saregama had done a Barbie called Hope has Wings for a brand. The song played
on music channels. There was also a tie up with micro processor solution firm
AMD for the DVD release of Madagascar. |