Feeds

Amazon buys into Lovefilm

For £9.99 per month, postage included

Security for virtualized datacentres

Amazon Europe has agreed to cough the cash to acquire the largest stake in DVD-by-post outfit Lovefilm. It'll sell its own UK and German DVD rental businesses to Lovefilm as part of the deal.

Subject to regulatory approval of the deal, Lovefilm will then be promoted on Amazon's European sites.

The deal is likely to pique competition regulators' interest. Lovefilm controls about 70 per cent of the DVD rental by post market in the UK, while Amazon has been growing at the expense of Blockbuster's sidelined postal service.

The market has consolidated rapidly in the last three years, as smaller players have realised they can't compete on price with warehousing operations like Lovefilm and Amazon.

Blockbuster meanwhile is struggling to deal with the threat from Netflix on its US home turf, and has neglected the booming European postal market. Helen Davis Jayalath, a senior analyst at Screen Digest, said the dominant high street player has ignored the internet. "I don't think there's been that much of a desire to build up that side of the business", she said.

The level of scrutiny directed at Amazon and Lovefilm will depend on whether watchdogs consider DVD rentals by post a market in itself, as opposed to part of the broader film-borrowing racket.

The pairing of Amazon and Lovefilm will be well placed to attack movie and TV rentals via legal downloads and streaming, pitting them against Apple's iTunes. Lovefilm's download service is up and running, while Amazon has yet to enter the European market. ®

Internet Security Threat Report 2014

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple's iPhone 6 first-day sales are MEANINGLESS, mutters analyst
Big weekend queues only represent fruity firm's supply
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Bill Gates, drugs and the internet: Top 10 Larry Ellison quotes
'I certainly never expected to become rich ... this is surreal'
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.