Madhouse acquired by Seventymm!

seventymmmadhouseWell 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.

5 Responses to “Madhouse acquired by Seventymm!”

  1. Gautam
    June 20, 2007 at 3:51 am #

    Perhaps consolidation is not the right time. Research figures indicate that the home video industry is set to explode exponentially to Rs 2000 crores. Surely with this size of market, there must be enough to go around for 5 to 6 companies in this space. Madhouse exiting to seventymm reeks of who's got more money and not necessarily any synergies. For one we know, that both companies operated the same model. SeventyMM was already in Delhi, surely Chandigarh, Panchkula and Mohali are not as happening as Delhi is.. So whats the deal? Any idea what the deal size was? ;)

  2. Priya S
    June 20, 2007 at 5:50 am #

    Hey Gautam, We did interview Sameer Guglani, the then CEO and Founder of Madhouse and now the Vice President -Corporate Strategy of seventymm. We asked him to disclose the amount or details of the deal and as usual we got the "cant disclose" reply.

    heres the link to the interview –>http://www.watblog.com/?content=detail&id=807

  3. nemo
    January 6, 2008 at 3:54 pm #

    Seventymm – HORRIBLE SERVICE! Need to invest first in Systems and Customer Service before adding new features or buying more companies to make more money!

    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

  4. Avijit
    February 6, 2008 at 4:59 pm #

    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.

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  1. So, whats the big picture? « - May 22, 2008

    [...] competition in the space, other than the quite well known Seventymm, can be seen here. The reason for this renewed interest is the TVC that i have been seeing for the last couple of [...]

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