Online retailer Amazon has announced a deal which will result in them having full control of the film rental website Lovefilm.
Amazon already owns 42% of the company, but has agreed today to buy the rest of the company from its shareholders. Lovefilm currently has 1.2million people in the UK signed up to its subscription service, which sends DVDs and games through the post, or allows members to stream content to selected devices.
The company will continue to operate under the same name, but Amazon plan to grow the brand using its large customer base and its movie website IMDB.
A source close to the deal has said “If you take the world’s biggest online retailer with a huge customer base and put it with one of the worlds largest film clubs and the world’s largest film website, that’s quite a mouth-watering mix.”
Amazon originally sold its DVD rental section to Lovefilm in 2008, which is how they became a shareholder. Since then the company has grown substantially and Amazon now think they are the ones to further this growth.
Chief executive of Lovefilm International, Simon Calver 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.”
Lovefilm already have about 1.6million members in the UK, Germany, Sweden, Norway and Denmark, and this number is only expected to grow now that Amazon have full control over the company.
Amazon originally started as a book selling website, but has grown into one of the biggest online retailers. Last year they launched the highly successful Kindle device, which allowed people to download books on the fly and read them anywhere.