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BigFlix.com - The NetFlix of India in the making?
Jun 23, 2008 06:29 PM 3927 Views

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I worked for a large video rental chain in US for 7 and half years and I clearly understand the challenges involved in setting up something like BigFlicks(or the new BigFlix.com).


I have seen some reviews written about BigFlix. I am comparing the model and service between US and India and trying to rationalize on how things may look better for Indian movie lovers through BigFlix.


US Scenario:


In US majority of the customers are internet savvy. They have tasted online rental services from the likes of NetFlix and Blockuster online. They like comfort.




  • They have a reliable postal service which guarantees next day delivery of DVDs sent from Blockbuster or Netflix.




  • Every address in US is mapped and driving directions are easily available for point-to-point driving




  • People understand how the online rental model works and what are the challenges involved.




  • If you are renting DVDs online, you can only return it to the online store through the envelope provided, but, not to a physical store nearby(incase of Blockbuster Online).




  • Rental subscription charges are higher(Starts at$8.99 for a 1 DVD out scheme, ofcourse there is$4.99 scheme which allows you to rent only 2 DVDs in a month)




  • Logistics of DVD delivery is not an issue




  • Piracy is almost Nil






*Current day India Scenario:



The online rental model is fairly new to Indian customers. Not everyone has access to internet and can order movies online. Piracy is rampant and anyone getting into movie rental business has a big competetion weeding through the piracy market and making a profitable business out of movie renting.


Let's look at the challenges here




  • We do not have a reliable postal service which can guarantee next day delivery to any address where the service is being offered.




  • All addresses are not mapped and clear driving directions are not readily available, making it difficult to deliver the movie at a desirable time frequency




  • The business model is fairly new for indian market. Though it is successful abroad, the challenges of doing this kind of business in India are plenty




  • At the current price of Rs. 299 for one DVD out plan, this is a very cheap rental plan for a movie lover(considering the cost of DVD, logistics etc)




  • Every state has its own regional preference when it comes to movies, so you need to cater to all the different popular languages if you want to be successful




  • Since you do not have reliable postal service, I think, BigFlix has its own delivery system where the delivery boy(who is called a Runner) delivers the movies and picks them from your home as well. Just imagine, him trying to find an address in the remote part of the city without any mapping solution at hand




  • Cost of real estate and cost of carrying multiple regional language movies in the store or the distribution center






When you look at these challenges, I must say it is a brave attempt by Reliance to bring BigFlix to Indian customers. Ofcourse, as like any new business, there will be nuances in the initial days or months until they get a handle on the situation. I will not be blaming them for not delivering the movie as promised, instead, I would be watching them closely to see how they are overcoming each of the challenges in Indian cities. I have seen a tremendous improvement in their deliveries lately. The runner comes in our society almost everyday between 2pm and 3pm to pick and delivery the movies. Yes, there are hicups in the website, I am sure they will get over with it.


Instead of writing them off, I would encourage them to make this model a successful one. It helps us as a customer to get better quality movies. It helps in reducing the piracy that is rampant in out country. It will help in creating more employment opportunities across the country and a quality movie watching experience.


I have taken an annual membership as I want to watch them improve and sustain this business model. So far I have been happy. The movie gets delivered on time and as per the Q. I had call the customer service center couple of times initially and I found that they were also courteous and helped resolve my queries.


I didn't understand the Q system earlier. I didn't get an idea as to how the online and in-store thing would work together. So, I went to the BigFlix store that they opened near my residence and understood how this whole thing works.


Here is how it works.


Anything that is in Q is serviced through their distribution centers, which have more movies than their stores. Whatever you see on the website may not necessarily be available in their stores, but will be available in their distribution center. I can Q my movies online. If I do not have any movies with me, the first movie in the Q will get delivered to my home. I can return it to the store and pick up any other DVD from the store. This will get updated in the system and no movie will be dispatched from the Q, as I have picked up something from the store. Once I have a DVD, I can either request for a Pickup(even if the movie is picked up from the store) through online or calling their customer service center ror I can simply walk-in to a store and return it. When it is a pickup request, the runner will come with the DVD that's next in the Q, deliver that DVD and pick up the one that's with me and this cycle continues.


*Some comments on the website:


*The website is good for a startup business. Content is well laid out. Search is Ok. Website load time is good. You can easily Q the movie and see what is in your Q. Navigation is very easy. I am sure they are constantly working on improving the usability of the site. Sometimes fixes to website take little long, which I wish, they do it faster. They are trying to build a community by allowing the user to tag the movie, rate the movie, provide review comments for the movie. This is good, will help other movie watchers. They have enough titles in every language.


The only thing I wish is that Reliance works with major studios to get the DVDs released sooner, so that we can sit at home and enjoy the movies. I am not sure what is the current gap between when the movie gets released in the theatre and when its DVD is available in the market.


Anyways, I think BigFlix is heading in the right direction. I am sure they have their hands full with operational challenges. I wish them all the best and would recommend this service to everyone. Give them sometime, they will work out resolutions to the challenges.


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