Bangalore based online DVD rental company SeventyMM has acquired 100 percent stake in Delhi based co Madhouse Media for an undisclosed sum, reports Business Standard. We’d reported earlier at the beginning of the year that Madhouse Media had received $228,000 from the Delhi based Band of Angels of Delhi, as well as the Mumbai Angels and a few other private investors. The company has been focused largely on North Indian markets of Delhi-NCR, Chandigarh, Panchkula and Mohali. Madhouse offers DVD rentals via the Internet, SMS and phone for home delivery, and has set up a return route by establishing a network of Movie Points and Skypak dropboxes. SeventyMM, on the other hand, has $7 million in funding from Matrix Partners.
Is the fledgling organized DVD rental business ripe for consolidation yet? Perhaps the entry of much larger players in the Home Video business (both sales and rental) has necessitated this move: Nimbus is pumping in $34 million, Reliance Entertainment is launching Big Flicks and will have synergy with sister concern Adlabs, and Moser Baer has changed the game by putting up DVDs for sale at as low as Rs. 34. In this context, I guess consolidation was necessary for both Seventy MM and Madhouse, and others might also combine forces. Pranav of Startup Dunia has a chart comparing some of the DVD Rental companies.