Interesting news this week. #1 French online-DVD player glowria.fr announced it had raised 4M € in a series-C (or D?). Part of that money was used to buy the #3 player in the French market, and glowria.fr now claims to be the #1 player in continental Europe with 70% marketshare in France. Great.
Great because in the meantime, the 2 largest players in the UK, Videoisland and lovefilm, have just decided to join forces and create a 400,000 subscriber strong company. Clearly a great move for both of them (I guess they were competing like crazy with marketing dollars, and had customer switch all the time). That makes them the #1 predator for glowria.fr on the continent.
A combined European player would then be on the acquisition radar for Netflix, the category leader in the world, with over 4 million subscribers. The press release indeed says:
"The
new company plans to exploit synergies on marketing, technology,
distribution and operations to grow profits faster and accelerate
expansion across Continental Europe. The merged group believes it will
be better positioned to exploit these opportunities and be more
competitive against US rivals such as Amazon, Blockbuster and
potentially Netflix."
Congrats to Simon Calver on becoming the new combined CEO. Time to move our thoughts therefore to the new battle: video-on-demand...
Disclosure: my business partner and I own a small equity stake and stock options of glowria.fr