LoveAmazon?
Amazon has finally officially announced that it has reached an agreement to acquire the remaining shares in LOVEFiLM after weeks of speculation.
LOVEFiLM ‘s subscription service, which offers online and postal rental plus streaming of films, games and TV shows, currently operates in the UK, Germany, Sweden, Norway and Denmark.
Amazon already had a significant minority shareholding and does not offer a rival service in Europe. It is thought that e-tailer wants to bolster its existing e-tail proposition with an already established VOD offering.
"LOVEFiLM and Amazon have enjoyed a strong working relationship since LOVEFiLM acquired Amazon Europe's DVD rental business in 2008, and we look forward to a productive and innovative future," said Greg Greeley, Amazon's VP of European retail.
Simon Calver, chief executive of LOVEFiLM International, said: "The deal is a winner for the members who love LOVEFiLM because of its value, choice, convenience and innovation in home entertainment. With Amazon's unequivocal support we can significantly enhance our members' experience across Europe."
The acquisition is subject to customary closing conditions, including regulatory approvals and is expected to close in the first quarter of this year.
It is expected that the battle to be the dominant player in VOD market will intensify, with Apple predicted to build on its nascent TV efforts, Google to persist with its own, despite teething problems and Rovi, Netflix, Hulu to push on with their own offerings.
