Gallic online DVD rental service Glowria said it has acquired the parent company of Teutonic rival InVDeo.
Glowria’s purchase of Palago, details of which were not disclosed, follows hot on the heels of its acquisition last month of German online rental company DiViDi. Move puts the French company, already the leader in Gaul, at No. 2 in online DVD rentals in Germany in terms of subscribers, the company said.
European online rental companies are consolidating at a brisk rate, jockeying for position in the emerging and potentially lucrative biz.
In April, British online rental firms Video Island and Lovefilm merged to create Europe’s leading online subscription service, days after Lovefilm announced a pact with Universal for the U.K.’s first download-to-own service.
Warner Bros. Home Entertainment this week licensed its download-to-own programming to Glowria’s French service.
“One of Glowria’s key goals is to define the growing online DVD rental market in Europe,” said topper Mihai Crasneanu. “This second acquisition in Germany is a major step in that direction. We identified InVDeo and DiViDi as the key actors in the German market, the companies with the most possibility for growth and expansion.”
Company said the Teutonic market was a key territory given Germans’ penchant for online renting.
“Germany is not only continental Europe’s biggest market for online DVD rental; it is also a country that has long embraced distance buying,” Glowria said in a statement. “Germans are second only to Americans in number of mail-order purchases, which has a natural evolution into online transactions.”
The company also noted Germany lacks video rental chains and is continental Europe’s largest broadband market in volume terms.
Glowria, owned by Glow Entertainment Group, said it plans to integrate InVDeo’s “superior logistics process and IT development” while benefiting from synergies in operations and catalog management.