Blog Post

SeventyMM Acquires Delhi Based DVD Rental Co Madhouse Media

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.

9 Responses to “SeventyMM Acquires Delhi Based DVD Rental Co Madhouse Media”

  1. Beware of Seventymm movie rental service—-

    I was the subscriber of Seventymm (Sub ID-47161)and being dissatisfied with the service,I opted for refund of my security deposit of RS. 999/- long back and I was really amazed by the indifference shown by them regarding refund of my security deposit of Rs.999/- nor have picked up the two movies from me inspite of being asked long ago. Everytime I send e-mail, they send their customary regret letter and subsequent telephone call from your office. They kept on assuring me to make payment within 15 days since Aug 21, 2007. Even after sending my various e-mail they replied in routine fashion assuring me of early payment and their customer care person even called me in the third week of January'2008 and said that cheque amounting to Rs. 999/- is ready for delivering the same at my office address. But till date , I have not heard anything from their end. Their service is public related service and I feel that such type of behaviour from this type of Company need to be brought to the notice of public in general through the appropriate medium as well as through initiation of appropriate legal proceedings. Also please note that, I tried to close the entire issue in an amicable manner, but, it appears that, they are not interested to close the issues once for all other than sending their hilarious regret mail from time to time.

  2. Seventymm – HORRIBLE SERVICE!

    Recently subscribed and all the positivity vanishes the moment your cheque is collected.

    Ask for a suggestion and they will give an uneducated one! Order a DVD and wait until the delivery boy arrives, or you can call the next morning to check and the reply is its been dispatched.

    I waited half a day and then called again to check. Now the reply is "SORRY, SYSTEM FAILURE, DVD WAS NOT DISPATCHED"

    Guess these guys can do with some serious investment in SYSTEMS & CUSTOMER SERVICE PEOPLE if they want to be a leading online rental service.

    Not sure if the Matrix team gets better service for the millions invested

  3. Harshad

    Great going for the DVD rental business. Consolidation is coming a lot sooner than more mature markets.. Any idea what the acquisition consideration was?

  4. Chiradeep

    The move is looked upon as more of gearing up for the situation once the big boys like Reliance,Nimbus joins the bandwagon. However in the end its the survival of the fittest. Acquiring Mad House may give some skeletal presence in certain pockets, but may not be of much commercial or logistical value.

  5. i just call this as seventymm getting MAD :-)
    But overall a possitive move, before other BIGs come in the market! I personally feel the pricing and distribution is the biggest challenege in this whole business…if one can build a value in such a business the # of active reg. users and how well the distribution is set will count.

    I would congratulate 70mm for this win!

  6. satish

    Well it looks a case of cash problem. Madhouse had $228k a very low sum to run for long. 8 months is sufficient to burn this money as this business is mone intensive.