Amazon has purchased movie and game rental service LoveFilm.

The online retailer did not reveal how much it paid for the service, which combines online rentals on PCs, internet-enabled TVs and the Playstation 3 with offline rentals by post.

Amazon already owns a significant majority sharehgolding in LoveFilm, which operates in the UK, Germany, Sweden, Norway and Denmark, but does not operate any similar business itself in Europe.

"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.

"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."

Simon Calver, chief executive of LoveFilm International, added that the deal ensures the company can "significantly enhance our members' experience across Europe".

The deal is ecpected to be completed by the end of the first quarter, but will first have to be approved by regulators.

http://www.pcadvisor.co.uk/news/index.c ... ID=3257409

I'll bet the previous owners are delighted.
The days where people put up with waiting days for a scratched DVD are fast becoming a thing of the past.
I wouldn't have expect that business model to last more than a few more years.

Their model had a better lifespan than Blockbuster. Lovefilm can have a central warehouse, somewhere cheap and with a highly automated plant can adapt very quickly to any changes in demand. The online business can make it easier to drop DVD altogether. Though DVD sales are making a dent in rentals.

TBH the things that tempts me most to open a LoveFilm account is the ability to rent games and stream films, if I could get that a little cheaper per month I'd definitely do it.

I have to confess I am also looking at the idea of a Lovefilm account. for streaming or DVD's. Not sure what to go for just yet.

I've been a member of LoveFilm for just over two years. I can't fault their service with regards to sending out DVD's. Their streaming service is appealing, but my internet connection just can't handle it

All I ever got was scratched discs, and between their turnaround time and Royal Mail, it was never gonna be worth continuing. YMMV.