Amazon DVD Rental gets into bed with Lovefilm

By Neil Hawkins Staff Writer Wednesday, 6 February 2008

Amazon DVD Rental has merged with Lovefilm Read our reviews of: LoveFilm DVD Rental Amazon DVD Rental Related DVD Rental News See our other recent related news stories: LoveFilm Lure Back Ex-customers With New PAYG Service DVD rental giant Lovefilm is luring back ex-customers with a pay-per-rental system that allows customers to rent films as and when they feel like it.

AMAZON and Lovefilm have reached an agreement that will see 300,000 Amazon DVD rental subscribers move onto the books of Lovefilm, increasing their total number of customers to 900,000.

In return Amazon will become the biggest shareholder in Lovefilm with a massive 30 percent stake.

The deal is the latest in a long line of acquisitions by Lovefilm who have consolidated their position as by far the biggest player in the Uk’s online DVD rental market.

More Choice

The move has been greeted by a profound melancholy from the majority of Amazon’s subscribers who either have already used Lovefilm at some point in the past or are not too worried about being carried into the arms of Lovefilm.

The deal, which is still subject to regulatory approval, will mean that Amazon subscribers will have access to an increased number of titles, around 65,000+ and be able to rent games for most games consoles.

There is also speculation that the joint operation will be able to expand its number of titles to be even more comprehensive.

It will also be a good test for Lovefilm’s new Pay As You Go service, which was launched in response to customer demands.

Market Domination

Lovefilm’s competitors will certainly hope that Lovefilm doesn’t launch a price war and attempt to cost their remaining rivals out of the market but other than that they appear mostly unmoved by the news.

Lovefilm has come in for some stick for its DVD rental service in the past but this is not surprising considering the number of subscribers it has.

The size of the new operation means Lovefilm has an opportunity to impress their new punters and with 300,000 members coming onboard it is a unique one.

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