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Thursday, December 20, 2007

Reel Buzz: Secret Business Model Of Moser Baer

Moser Baer is now conquering the VCD and DVD market slowly. The company emerged as a big tool to fight piracy. The USP of this brand is that it sells DVDs at Rs 34 and VCDs at Rs 28. But there is a business reason for Moser Baer for starting this phenomenon.

Moser Baer is basically a CD manufacturing company that is running on more expensive machinery. As the formats are changing with advancing technology, Moser Baer is eager to do break-even on the machinery. Hence instead of selling the empty CDs to video companies, it has ventured itself into the business by taking the rights of films and pushing them into market on their CDs. As the manufacturing of CDs is in its hands, that costs very minimal.

But majority of hit film rights are in the hands of doyens in this business like Volga and Shalimar. But the end consumers are happy with the prices of Moser Baer and are purchasing many VCDs and DVDs although some films are not hits or never heard of by them. Some fast moving VCDs and DVDs on Moser Baer are 'Padamati Sandhya Ragam' (high quality DVD just at Rs 34/-), 'Seeta Kokachiluka' (VCD at Rs 28) and Kamal Hasan's silent movie, 'Pushpak' (DVD at Rs 34/-).

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