Well the dvd rental business has shown the first signs of consolidation. Seventymm has acquired 100 per cent equity of the New Delhi-based Madhouse for an undisclosed amount. This is probably because of the fact that Madhouse had a good network in the delhi and gurgaon belt and also had a good team backing it. We had also covered the reason why the band of angels had funded Madhouse for 1.05 crores.
This acquisition by seventymm puts it on a strong foothold to compete with biggies like Reliance ADAG which is expected to come out with Bigflicks.com and with other biggies like Nimbus and Moser Baer.
The other players vying for the Dvd rentals market which is expected to be close to 2000 crores by 2010 are catchflix, cinesprite and moviemart. It will be interesting to see how this market finally pans out. I expect more acquitions as certain smaller players might overtime develop locational advantages just like in the case of Madhouse.