In what looks to be a deal more beneficial to Amazon than any other participants, the monster online retailer is selling its European DVD rental business to LOVEFiLM International, Europe’s version of Netflix. This goes for Amazon Europe’s DVD rental business in the U.K. and Germany, two regions where LOVEFiLM is prominent.
To make things more exciting, Amazon is in turn making a cash investment in LOVEFiLM in order to become the largest shareholder in LOVEFiLM International. Though the financial details of these transactions were not disclosed, the deal will give LOVEFiLM access to nearly 1 million users across the U.K., Germany and also Scandinavia.
In the end, it looks like Amazon would rather further its initiative with DVD rentals as part of the LOVEFiLM brand as opposed to a division under its own Amazon umbrella. As the Associated Press reports, the investment will help LOVEFiLM grow its own business, expanding its reach and providing it with additional resources, and also gives Amazon access to a wider rang of consumers through LOVEFiLM’s brand, which is probably more receptive to consumers than a subset of Amazon’s already expansive website.
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