Amazon buys movie rental firm Lovefilm
Business digest: Internet retailer already owned 42 per cent of the DVD rental company
Internet retailer Amazon is to take over online film rental firm Lovefilm in a deal that values it at around £200m. Amazon already owned 42 per cent of the company but has now moved to purchase the remaining 58 per cent.
Lovefilm launched its postal DVD rental service in the UK in 2004 and now has 1.4 million subscribers across Europe. In 2009 the company tripled its sales and last year it expanded further when it launched a digital service, which allows customers to watch films online.
Lovefilm chief executive, Simon Calver, said: "With Amazon's unequivocal support we can significantly enhance our members' experience across Europe."
Amazon hopes that Lovefilm can replicate the success of American company Netflix, although there could be a battle ahead as the US firm is thought to be gearing up for an assault on the European market.
Read a full report at the Guardian.