Why did Moser Baer, a company that manufactures discs, decide to enter the entertainment industry? Is it a natural extension?
Moser Baer is the world’s second largest optical disc company. It is a natural extension for our company’s operations to enter this segment. What we sell is a blank CD, not a value-added product. Our discs are used for storing data, but we found that most of the CDs and DVDs go for pirating films.
As an optical media manufacturer, we felt there was a huge market out there which is exploited by the piracy market. We thought, why not enter the market and acquire the content, which will be a value-addition to us. That is why we have this entertainment business wing in India.
How big is the entertainment market in India today?
It is a Rs 750 crore (Rs 7.50 billion) market. The piracy market is three times the official one! The real market size is Rs 2,000 crore (Rs 20 billion). So, a large chunk of the market is eaten away by a very organised piracy market, the centres of which are Malaysia and Dubai.
Image: Compact disks in a music store in New York City. Spencer Platt/Getty Images
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