Amazon has just bought Lovefilm, the DVD subscription rental service. In the era of Internet TV and Sky, many will be wondering why one of the world’s biggest and most popular online retailers would want to buy a DVD rental shop. Well, in reality, Lovefilm is a little bit more than just a video shop. Lovefilm wants you to download or stream movies over your broadband connection and, for Amazon, that means a massive new untapped market in Europe.
Pie In The Sky
But, what about Sky? Don’t they already let you order films on demand? Yes, they do, thanks to their contracts with all the major film studios. But, a similar service to the one being launched by Lovefilm is already proving a massive success in the US. Netflix has taken the states by storm, proving that some people like to watch movies on TV without having to subscribe to a satellite service. These customers simply want to be able to enjoy the latest movies from time to time without being locked into a subscription for a mindboggling array of channels they really don’t want. And that’s where Lovefilm’s offering starts looking lucrative for Amazon. Netflix is already eyeing up the European market and Amazon is hoping they can give Lovefilm’s digital offering a foot in the door first.
More Choice For Movie-lovers
The collaboration makes perfect sense when you consider that it was Lovefilm that acquired Amazon’s DVD rental business back in 2008. With Amazon in the picture, Lovefilm now has the clout to go to the big studios for their piece of the big movie action. And for you, that means watching the movies you want to watch wherever you have an Internet connection and a screen – without having to fork out a monthly subscription to Sky.
Of course, the £200 million deal is good news for the owners of Lovefilm, but it’s also good for movie lovers who will now have more choice when it comes to watching the latest blockbusters. The only obstacle remaining is how much the service will cost. Amazon and Lovefilm have yet to cut the deals with the big Hollywood studios to make their service a reality and that won’t come cheap.