Amazon Buy LOVEFiLM

Image representing LOVEFiLM as depicted in Cru...
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I’m a huge fan of both of these sites. Amazon sell pretty much anything you could want, and offer free and fast delivery on most of it too. Lovefilm are a great DVD and game rental service which has been around for a while but I recently got into a few months ago.

Amazon already owned 42% of the rental company when Lovefilm acquired Amazon’s own rental service. Now they have decided to take complete ownership and buy the remaining 58%. I think they have mainly done this to give themselves a head start in a rental battle with Netflix, the US rental giant if they decide to go ahead with a worldwide expansion beyond North America.

This deal really gives Lovefilm the ability and power to expand and be aggressive in their strategy moving forward. With Amazon’s might and money now fully behind them, they will be able to focus on their product and not have to worry about their bottom line as much as before. This will likely mean a big focus on expanding their streaming media operations, their movie selection as well as other future plans for new features and services.

If Netflix do expand into the UK and beyond soon, they will face tougher competition than they do back home. They remain practically unchallenged there, except for the dwindling Blockbuster and small chains of video rental stores, which are hardly a match for Netflix by this point in time.

Competition is of course great for customers so I can’t wait to see if that does happen. Regardless, Amazon and Lovefilm will have some great joint plans for the future and I’m excited to see how this partnership develops.