British based online movie and game rental company Lovefilm have just announced this morning that they have been bought up by e-commerce behemoth Amazon in a reported £200m deal. Amazon already owned 42% of the company and today they managed to secure the entire operation. A few of the crew here are paid up members of Lovefilm, they signed up to the service in protest out of the rather extortionate rental fees Blockbuster were charging, and are slightly confused as to what the buy up means. But the company have assured all of their customers that nothing will effect or change membership.
A letter to members on their website reads:
“We wanted you to be amongst the first to know of an exciting development here at LOVEFiLM HQ. Amazon, the world famous online retailer, has decided to fully acquire LOVEFiLM, because of the great potential they see in our service, and how it might develop in the future.
Most importantly we hear you ask, what does this mean for you?
There’s nothing to worry about… nothing will change to your account. You do not have to do anything, your service remains as normal. The price you pay, your billing date, the terms and conditions of your service will remain unchanged. And your service will still be called LOVEFiLM.
And in the future?
Well your existing LOVEFiLM team will stay in place and together with the guys at Amazon, we are planning some exciting new developments for the future of LOVEFiLM. We’ll keep you updated…”
Could this deal signal the end of Blockbuster and other high street video rental outlets in the UK?