August 20, 2004

Bollywood titles fill On Demand Niche

Seasonal and topical themed collections aren't anything new to VOD, but New York-based 212 Media and Schramm Sports & Entertainment have upped the ante with 'Bollywood on Demand.' Their special collection features Bollywood movies, series and other special events on the Comcast and Time Warner Systems. A quick survey of the MMB's own Time Warner box shows a nice selection currently available.

As VOD offerings increase, packaging offerings as niche collections will boost repeat purchases and drive program loyalty. If you look at the DVD business as an example, you'll notice that the companies with the greatest brand loyalty specialize in "enhanced collections. The fans of companies like The Criterion Collection will buy an unknown title purely on the strength of the brand. While they may not bring in huge sales figures like a Columbia/Tri-Star, their editorial expertise and emphasis on quality has helped Criterion build a sizable measure of trust with their consumer base. I guarantee you that when DVD growth drops from 44% this year to around 8% in 2008, Criterion will still show steady, stable growth with intense brand loyalty.

So what can VOD marketers learn from DVD niche marketing? If anything, the shift to a la carte offerings means that the studio brand will become increasingly important -- better to be the master of your genre (i.e. Dimension) than a broad-based player. We may see a mini 'balkanization' at the studios as branding grows in importance. Why? It's simple -- if you have to pick from thousands of unknown titles, genre signifiers will be truly important. And to all of you indie moguls-in-waiting, I say to you: pick an underserved niche, and ensure you lock up PPV and internet rights!

As an aside, I would also expect third-party information providers (like Muze or Rotten Tomatoes) to grow in importance as they will eventually become integrated into VOD menu systems. Look for a major deal in that space in the coming months...

'Bollywood on Demand' on US cable - Indiantelevision.com's Breaking News