What Amazon’s Acquisition of LOVEFiLM Means For Customers

lovefilmlogoLOVEFiLM, a popular online video rental company, is to be bought by Amazon. The company which offers rental-by-mail services, DVDs, Video-game console discs, on-demand video streaming and Blu-ray discs over the Internet in the United Kingdom, Germany and Scandinavia, is reported to have over 1.5 million members, 67,000 titles and more than 4 million rentals by members per month. Whilst both organisations have shared activities in the past, this latest development means that Amazon has reached an agreement for a full acquisition of LOVEFiLM.

Users have been advised not to panic as their LOVEFiLM accounts (including subscription, price, billing date, terms and conditions) will remain unchanged. Furthermore, LOVEFiLM will retain its name and hopes that this deal will help it develop further and enhance members’ experience across Europe. However, members should note that each of the Websites will operate independently thus their Amazon password will not work for LOVEFiLM. The transaction is subject to customary closing conditions, including regulatory review, and is expected to close in the first quarter of 2011. Further details of the agreement and what customers can expect will be released in the near future.

Talking Point

What are the benefits on-demand video streaming on the Web?

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  1. I don’t think anyone will be able to beat Netflix in the online video streaming market, but if there’s anyone that has the power to do so, it’s Amazon (and probably Apple). But the audience for video streaming sites are still miniscule compared to the audience for actual TV (I think like 1%)

  2. There are more than a few benefits of on-demand streaming on the web. I think LOVEFiLM will develop further and enhance members’ experience thanks to this new deal with Amazon.

    As a matter of fact, I think the acquisition by Amazon will help LOVEFiLM become more well known and could increase the amount of new members they receive.

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