Tuesday, January 16, 2007

Indian DVD-by-Courier Companies

iLeher writes about Madhouse, another Indian DVD-by-courier (the mail service is not reliable in India so they use couriers instead) company that was recently received $228,000 in funding.They have introduced a concept of Movie point. These are existing retail stores that will agree to become DVD return outlets. Slowly they can expand these channels as pickup points. This will create indirect channels at reduced or fixed SAC targeting customers who are not going online. This is important as reverse logistic (returning DVDs) makes a big chunk of operating cost for Madhouse.

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