Through IdeiasVentures, the holding company increased its stake from 10% to 25% in Brazil's leading on-line DVD rental company.

Since the entry of IdeiasVentures in its equity capital in September 2006, NetMovies (www.netmovies.com.br) has been consolidating its presence in São Paulo state and intensifying its expansion in Rio de Janeiro, which already accounts for 35% of its subscribers.

The rental company, whose business model is based on the American NetFlix, has the largest collection of movies in Brazil and offers its customers 10,000 different titles for monthly fees starting at R$ 28.00 with no late fees.

Since September, NetMovies has focused its efforts on streamlining its logistics, which has resulted in better quality of service and lower operating costs. The changes were evident and quickly noticed by subscribers, the result being an almost 60% decline in subscriber cancellations.

The highly scalable model allows rapid expansion to other locations and, according to studies being held, services may be extended to the Baixada Santista region of São Paulo state and Belo Horizonte.

With an improved operational structure and a better movie collection, the company has embarked upon investing in communication and marketing, and preference will be for on-line transactions, with a better cost-benefit ratio and in which results that can be measured in real time.

The communication initiatives will begin in July and the company expects to increase its subscriber base by 400% in 4 months.

Ideiasnet raises its stake in the company at a strategically important moment when it studies and plans mergers with large retail players to stay ahead of competition.