According to a Moser Baer representative, the DVD release was to their advantage. Earlier, films that performed badly at the box office were released on DVD very soon. Things seem different now though, seeing as LSD is doing rather well.
The usual rate at which a film has its DVD release is about a month after its theatrical release. Deewangee was one of the fastest films to come out on DVD, just four days after it released in theatres. Its DVD release had been a surprise to everyone as the film had been doing quite well.
The main reason behind an early DVD release is to curb and kill piracy. Films become perishable just after a month and launching the DVD at such a time can work in the film's favour. In the video cassette days, a VHS tape would be released on the same day as the film. This may soon be the path the DVD market goes down too.
Films earlier premiered on television after about six months. It has now come down to two months. Earlier, DVD releases would be two months after the film's release and now it's one month. Soon enough, it may release along with the film.