Amazon Buys Out The Rest Of LoveFilm For Full Control

Online retail giant Amazon recently purchased the rest of movie rental service LoveFilm to take full control of the company. Amazon already had a large share in the company after aquiring a 42% share back in 2008.

The world’s largest online retailer scooped the remaining 52% of LoveFilm they needed for a reported $200 million. Now that the fillm rental company is fully owned by Amazon it is likely that a huge overhaul will take place. The deal looks to be a very positive one as LoveFilm were finding it difficult to compete with similar services in terms of price and DVD quality, and Ian Morris over on Cnet shares this opinion.

LoveFilm rent their movies via post, and streaming has now become the dominant rental method, so arguably they could have been in danger of losing a lot of business. To their credit they did start streaming movies to Blu-ray players, TVs and computers; however kept postage as their primary method of trading. When Amazon take control it is not out of the question that they will scrap renting via postage and concentrate more on streaming to games consoles and the mentioned above.

The sale is expected to go through in the first quarter of 2011 according to The Guardian and typically purchases by Amazon in the past have had impressive effects on the sites taken over. The IMDb and DPReview are prime examples and Amazon did little to disrupt their good work. What kind of an impact do you think this purchase will have on LoveFilm?