LOVEFiLM acquires Amazon’s UK and German DVD rental businesses

Online DVD rental service LOVEFiLM International has acquired Amazon Europe’s DVD rental business in the UK and Germany.

As part of the deal, Amazon will make a cash investment in LOVEFiLM and become the biggest shareholder in the company.

The 2 companies will enter into a multi-year marketing agreement in which Amazon Europe will promote LOVEFiLM’s services on its sites for UK and German customers.

Greg Greeley, Amazon’s vice president of European retail, said 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, said customers are faced with an astonishing array of choices in the entertainment world these days. LOVEFiLM will ensure that Amazon Europe’s customers get the best possible DVD rental service.

Amazon’s DVD rental customers will be switched to LOVEFiLM, whose customer base will increase to 900,000 while its UK market share will rise to 20%.

Lovefilm’s other investors include private equity backers and the firm’s management. Its main rival is Blockbuster online.

Story link: LOVEFiLM acquires Amazon’s UK and German DVD rental businesses