LOVEFiLM acquires Amazon Europe's DVD rental business
I recently pointed out just how great DVD rental services are, citing LOVEFiLM as one of the very best.
Today, Amazon has announced that LOVEFiLM will acquire Amazon Europe's DVD rental business in the UK and Germany. In return, Amazon Europe will make a cash investment in LOVEFiLM and become one of LOVEFiLM International's largest shareholders.
Both companies will also enter a multi-year marketing agreement which will see Amazon Europe promote LOVEFiLM on its UK and Germany website.
Should the deal, subject to regulatory approval in the UK and Germany, reach completion, LOVEFiLM's subscriber base will total at nearly one million customers.
Greg Greeley, Amazon's vice president of European retail said: "As one of Europe's largest online DVD rental businesses, LOVEFiLM is well established to serve customers' increasing demand for entertainment. Our investment will enable LOVEFiLM to grow the business further and we are excited to be part of their future."
Simon Calver, CEO of LOVEFiLM International adds: "Customers are faced with an astonishing array of choices in the entertainment world these days. LOVEFiLM International will ensure that Amazon Europe's customers get the best possible DVD rental service. We will be delighted to welcome all Amazon Europe customers to the LOVEFiLM service. This new, bigger customer base will give us an even better position from which to build LOVEFiLM as the best place for customers to find film."
Amazon states that no staff reductions are planned should the deal be completed.
As a big fan of LOVEFiLM's services, myself and other users will be hopeful that the large increase in customers doesn't have an impact on service and doesn't slow down LOVEFiLM's admirable DVD turn-around time.
Official press release: LOVEFiLM to Acquire Amazon's UK and German DVD Rental Business; Amazon to Become Largest Shareholder of LOVEFiLM
