Feeds

Amazon loves LoveFilm (true)

Enough to buy out the company?

Top 5 reasons to deploy VMware with Tegile

Amazon is mulling a £200 million bid for Lovefilm, the UK's answer to Netflix, the Sunday Times reports.

Techcrunch UK's Mike Butcher is sceptical - he reckons The Sunday Times is often used as a stalking horse to help investors achieve a "liquidity event" - i.e. cash in some or all of their shares.

Unlike Mike we cannot claim any inside knowledge, but an Amazon-Lovefilm tie-in makes sense to us, even if nothing is on the cards now.

First up, Lovefilm is running the slide rule over a stock market flotation - at a time when IPOs are unpopular.

Secondly, the act of preparing a flotation often smokes out a buyer - it is easier, cheaper and gives investers the chance to sell out in full.

Third, and this is crucial, Amazon is already Lovefilm's biggest shareholder,, with a 42 per cent stake, after reversing its European film rental operation into the company in 2008 and later buying out one of the VC backers.

Lovefilm has the customers - 1.4 million all told - that Amazon wants. And it does something that Amazon used to do and wants still to do.

Most Lovefilm customers rent their films by post, rather than by Internet or TV, and Techcrunch thinks that buying a" legacy physical operation" would be a distraction for Amazon.

We disagree: Amazon does physical distribution as good or better than anyone. It is also managing the transition to online - witness The Kindle - rather well. As an independent Lovefilm will struggle to convert all its customers to a world of media players and video on demand. It is simply too small to take on the internet giants. This makes it a perfect fit for Amazon.

Internet Security Threat Report 2014

More from The Register

next story
PEAK APPLE: iOS 8 is least popular Cupertino mobile OS in all of HUMAN HISTORY
'Nerd release' finally staggers past 50 per cent adoption
Tim Cook: The classic iPod HAD to DIE, and this is WHY
Apple, er, couldn’t get the parts for HDD models
Apple spent just ONE DOLLAR beefing up the latest iPad Air 2
New iPads look a lot like the old one. There's a reason for that
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Caterham Seven 160 review: The Raspberry Pi of motoring
Back to driving's basics with a joyously legal high
Back to the ... drawing board: 'Hoverboard' will disappoint Marty McFly wannabes
Buzzing board (and some future apps) leave a lot to be desired
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
Protecting against web application threats using SSL
SSL encryption can protect server‐to‐server communications, client devices, cloud resources, and other endpoints in order to help prevent the risk of data loss and losing customer trust.