If you have been or are a user of Reliance BigFlix Movie Rental Service, by now you might have received an email stating that they are closing down all their physical distribution system and instead making the movie available by on-line streaming. Do you think it will work? Is this a good business decision on the part of BigFlix?
Internet connectivity is not that great in India. Though some major cities and regions have a good broadband connectivity, overall its still basic.
For internet streaming to work fine, the basic thing needed is a good internet connection and at a reasonable price. Right now most of the broadband / 3G internet providers do not offer any unlimited plans. So each time you download a movie it eats into your bandwidth. I am still not sure how their compression works but if its DVD quality each movie would be between 1GB and over.
If there are no unlimited plans with a user then one could end up spending anything between Rs. 100 to Rs. 250 or even more per GB. Really for that price you could buy your own DVD from the stores. Many companies offer DVDs at between Rs. 99-399 and it would remain with you for ever.
Also there is an option to shift to Pay-per-view facility from DTH Operators. They allow movie viewing at anywhere between Rs. 25- Rs.100 per movie.
Given all this would it not be wise on the part of Reliance BigFlix to rethink its strategy and continue DVD rentals?
Do comment your thoughts.