Amazon becomes LoveFilm's largest shareholder

by Nikki Sandison, Brand Republic 04-Feb-08, 11:55

LONDON - Amazon is set to become the largest shareholder of online DVD rental firm LoveFilm in a deal that includes rebranding its UK and German DVD rental business under the LoveFilm banner.

Amazon Europe will also make a cash investment in LoveFilm to become the largest shareholder in LoveFilm International and the two companies will also enter an agreement in which Amazon will promote LoveFilm's services on its sites for UK and German customers.

Following completion of the deal, the LoveFilm subscriber base will expand to over 900,000 customers, predominantly in the UK and Germany, but also in Sweden, Norway and Denmark.

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

"This new bigger customer base will give us an even better position from which to build LoveFilm as the best place for customers to find film."

for a transitional period Amazon Europe will continue to operate its own DVD rental business on behalf of LoveFilm until the completion of the rebranding as LoveFilm.