Online giant Amazon has revealed that it close to completing a deal which will see them take full control of the film rental service Lovefilm. Lovefilm and Amazon have always shared a close relationship after Lovefilm acquired Amazons rental business in 2008. Ever since Amazon has maintained a 42% share holding of the European based firm and has now struck a deal that will see them become 100% share holders.
“The deal is a winner for the members who love LOVEFiLM because of its value, choice, convenience and innovation in home entertainment”, said Simon Calver, Chief Executive of LOVEFiLM International. “With Amazon’s unequivocal support we can significantly enhance our members experience across Europe” he continued.
The Lovefilm service arguably has revolutionised that way people rent films; their rent by post service became an instant hit in the UK, Germany, Sweden, Denmark and Norway. But that hasn’t stopped them innovating with their new Lovefilm player that can stream movies over internet ready TV’s, PC’s and the Playstation 3.
It is also speculated that further widgets and variations on the Lovefilm player will begin to roll out across other brands and devices throughout 2011 as the idea of connected TV’s becomes more and more popular.
Amazon seems quite pleased with the deal too, “LOVEFiLM has been innovating on behalf of movie rental customers across Europe for many years and with the advent of the LOVEFiLM player, they are further delighting customers by streaming digital movies for their immediate enjoyment”, said Greg Greeley, Amazon’s Vice President of European Retail.
What do you think about the deal? Is it good or bad thing?