Amazon buys Lovefilm

One of the earlier posts on this blog concerned my predictions for the future of the company Lovefilm. You may remember I was less than totally convinced that it would thrive in an environment where digital download/streaming/piracy was becoming so much easier. I noted that environmental change had allowed Lovefilm to replace companies like Blockbuster.

Amazon clearly disagrees with me: Amazon takes full control of Lovefilm . The price is believed to be about £200m. Much froth at the Lovefilm webbie: BREAKING NEWS: AMAZON TO BUY LOVEFiLM.

Amazon sold its own DVD rental operation to Lovefilm a couple of years ago. I'm intrigued to see what they will do with the company in the medium to long term - the Guardian article notes the recent upsurge in members streaming via a games console - and my prediction is that they will try and evolve it towards being digitally/internet focused, rather than physical media focused.

As for me - after being a member for nearly ten years, I think I'll be cancelling my subscription at the end of the month. Nothing political, I just don't feel I get better value than I would on a pay-as-you-rent basis via my Apple TV - on which note: Users now watching more Netflix on Apple TV than on iPad. Netflix to come to the UK, entering via Apple is my second prediction