Mumbai: The Anil Ambani-promoted Reliance Entertainment Ltd (REL) is set to synergise the online model of movie rentals largely present in the US and European markets by adding online distribution of entertainment content to its portfolio.

The company has launched an internet property (IP) under its ''Big'' brand, christened www.Bigflicks.com. REL also plans to enter into the offline DVD / VCD rental business, in a model likely to be similar to US DVD rental company Blockbuster, by launching retail stores under the same brand - Bigflicks.

Reliance Entertainment president Rajesh Sawhney has announced that the rental business will commence this September, with the first three outlets under the Bigflicks banner coming up in Hyderabad, Pune, and Chandigarh. The company is looking at a count of 100 outlets by the end of this financial year, and plans to grow it to 500 stores over a three year period.

The average Bigflicks store would be spread over a 400-500 sq ft area, with larger flagship stores measuring upto 1,000 sq ft. The company is looking at a mix of leased and owned stores. According to Kamal Gianchandani, COO, home entertainment, Reliance Entertainment, the company plans to invest $100 million in both the ventures, 75 per cent of which has been earmarked for the offline DVD/VCD rental business.

The company envisages revenues accruing from the online venture, with a significant proportion coming from the rental business. Subscriptions are seen to be the primary revenue driver for the rental business.

Recently, companies like seventymm.com and moviemart.in, along with a few others already operate in the DVD / VCD rental business in the country, which is still dominated by the largely unorganised neighbourhood VCD libraries that function as a left-over from the erstwhile proliferation of Video cassette libraries of the late 1980s.

The onslaught of cable television was largely responsible for the withering away of hugely profitable video libraries in the 90s, though video rentals continue to command a niche even today.

Initial funding for the Bigflicks venture will come from internal accruals, with possibilities of other funding options at a later stage, even though plans are yet to crystallise. The company expects the venture to breakeven in about two years from launch.

Working in sync with home entertainment divisions of major companies, Bigflicks plans to procure rental rights for DVD/VCD already being distributed by these companies. REL intends to offer over 6,000 titles across movie genres, increasing to over 17,000 titles available at all the 100 outlets across the country.

Bigflicks online content distribution plans to target audiences by offering entertainment content for free online streaming with advertisements, and for download on rent or to own, without advertisements. Titles are likely to include TV serials, music videos, as well as Hollywood and other international movies, directly targeting the 25 million-strong NRI segment during the first year of operation.

Primary target markets include North America, the UK, Canada, Middle East, South East Asia, Europe and Australia, with movie purchases priced between $4.49 and $19.99.