Is Amazon looking to be the Netflix of Europe? You might think so. In fact you can be sure of it. The company has announced plans to purchase the remaining stock of leading movie rental service LoveFilm. The company, branded “LOVEFiLM,” is in the same business as Netflix but on top of movies by mail and internet they also offer Video Game rentals, and DVDs, Blu-rays, CDs and Books for sale.
LoveFilm was formed in 2004 and through several mergers and acquisitions has become the leading movie rental company in the countries it operates in. As of this month, LoveFilm says they have over 1,500,000 members and over 67,000 titles.
The company offers DVDs, Blu-ray Discs, and video games for rental by mail, or by streaming over the internet using their LOVEFiLM Player software. LoveFilm at one time offered downloads of movies but has ceased to do so since 2009. The company also offers some pay-per-movies online.
“With Amazon’s unequivocal support we can significantly enhance our members’ experience across Europe,” said Simon Calver, Chief Executive of LOVEFiLM International.
The two companies have had a relationship since LoveFilm acquired Amazon Europe’s DVD rental business in 2008.
LoveFilm currently operates in the UK, Germany, Sweden, Norway and Denmark. The full acquisition from Amazon, valued at approximately $156 million, is expected to close in the first quarter of this year.