LoveFilm
Encyclopedia
LoveFilm is a UK
-based provider of home video
and video game rental through DVD-by-mail and streaming video on demand
in the UK
, Germany
and Scandinavia
. It is currently an Amazon.com
subsidiary, and operates the LoveFilm website, as well as providing outsourced
website and delivery infrastructure for other British companies.
In January 2011, LoveFilm claimed to have over 1,500,000 members, over 67,000 titles, and over 4 million rentals per month across five countries. Through a series of mergers and acquisitions, LoveFilm has, in a few years, become the leading online DVD rental outlet in the UK and across Europe.
The company previously offered a download service alongside postal delivery, but this ceased (at least temporarily) on 23 February 2009. Instead, the company has started a "watch online" service which offers over 4,700 films available to watch as part of subscription. This online viewing is available free for subscribers who have opted for one of their unlimited monthly rental plans; there is also some pay-per-view
content available to all.
LoveFilm has grown due to 10 mergers and the acquisition of several other on-line DVD rental companies - the three main ones being Online Rentals Limited (the original company), ScreenSelect and Video Island.
In May 2002, Paul Gardner and Graham Bosher launched Online Rentals Limited (trading as DVDsOnTap), operating out of Harlow
, Essex.
In September 2003, William Reeve and Alex Chesterman launched ScreenSelect, operating out of Acton
in West London. And in the same month Saul Klein launched Video Island, operating out of Kings Cross
in central London.
In October 2003, Online Rentals Ltd was bought by Arts Alliance Ventures, a family-owned private equity firm. In December 2003, DVDsOnTap rebranded to LoveFilm, appointed Mark Livingstone as CEO, and relocated to much larger premises in the Spire Green Business Park in Harlow, Essex.
ScreenSelect led what became a clutch of mergers across the UK dvd rental industry. In December 2003, this began with the acquisition of In-Movies. In September 2004, ScreenSelect followed up with the merger with Video Island, which combined ScreenSelect's management and brand with Video Island's venture capital.
The year 2005 saw both LoveFilm and ScreenSelect grow rapidly as fierce rivals - with strong backers the two firms leaped ahead of their rivals. LoveFilm reached 50,000 subscribers in December 2004, and shorty afterwards acquired the retail chain Choices' online business. By March 2005, it had reached 100,000 customers, and shipped almost 700,000 rentals. In June 2005, ScreenSelect acquired DVDs365 (owner of Mailbox Movies, MovieTrak and Qflicks) and a few months later LoveFilm acquired the tiny Webflix. Both rivals acquired a Scandinavian firm; ScreenSelect acquired BraFilm (a Swedish and Norwegian business), and LoveFilm acquired Boxman (operating in Sweden and Denmark).
By 2006 ScreenSelect had outgrown LoveFilm, with over 200,000 customers against Lovefilm's 100,000 users. In April 2006, LoveFilm and Screenselect merged under ScreenSelect's management and technology platform but the LOVEFiLM brand, and moved the headquarters to Acton - ScreenSelect's original base. By the end of 2006 the LOVEFiLM brand had replaced ScreenSelect, Brafilm and Boxman everywhere except Norway - which followed in 2008.
In February 2008, LoveFilm acquired Amazon's DVD rental business in the UK and German markets, and in return Amazon became the largest shareholder of LoveFilm.
Besides Amazon and Arts Alliance Ventures, venture capital firms Balderton Capital, DFJ Esprit, Index Ventures
and Octopus Ventures also have stakes in LoveFilm.
On 20 January 2011 it was announced that Amazon would take full control of the company.
services operated by LoveFilm.
, as with the online streaming service only members with packages that cost £5.99 or more have access to the streaming service .
, Ewan McGregor
, Bill Nighy
and Ray Winstone
{http://www.hackinglovefilm.com/2007/11/new-lovefilm-tv-advert-competition/}. As of 2009, the theme song for the TV ads is "It Must Be Love" by Madness
. LoveFilm advertise in multiple media - online, press, TV, train posters, door drops, promotions and even bathroom posters in clubs, pubs and service stations.
over the use of the word "unlimited" in their advertising. The ASA upheld the complaint. It was revealed that they practised throttling, where high-volume customers may experience a greater likelihood of (slower) shipments from alternate warehouses, and selections from lower in their rental list. They are also less likely to receive replacement shipments on the same day a disc is received. The company itself claimed that this "fair usage" policy means all customers get a similar service.
UK to the rental sector of their site. This made a number of films unavailable to users including Public Enemies, The Invention of Lying
, Brüno
, Funny People
, Inglourious Basterds and Kick Ass
. This dispute has yet to be resolved and therefore LoveFilm no longer rents post-2009 films distributed by Universal Pictures
.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
-based provider of home video
Home video
Home video is a blanket term used for pre-recorded media that is either sold or rented/hired for home cinema entertainment. The term originates from the VHS/Betamax era but has carried over into current optical disc formats like DVD and Blu-ray Disc and, to a lesser extent, into methods of digital...
and video game rental through DVD-by-mail and streaming video on demand
Video on demand
Video on Demand or Audio and Video On Demand are systems which allow users to select and watch/listen to video or audio content on demand...
in the UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
and Scandinavia
Scandinavia
Scandinavia is a cultural, historical and ethno-linguistic region in northern Europe that includes the three kingdoms of Denmark, Norway and Sweden, characterized by their common ethno-cultural heritage and language. Modern Norway and Sweden proper are situated on the Scandinavian Peninsula,...
. It is currently an Amazon.com
Amazon.com
Amazon.com, Inc. is a multinational electronic commerce company headquartered in Seattle, Washington, United States. It is the world's largest online retailer. Amazon has separate websites for the following countries: United States, Canada, United Kingdom, Germany, France, Italy, Spain, Japan, and...
subsidiary, and operates the LoveFilm website, as well as providing outsourced
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
website and delivery infrastructure for other British companies.
In January 2011, LoveFilm claimed to have over 1,500,000 members, over 67,000 titles, and over 4 million rentals per month across five countries. Through a series of mergers and acquisitions, LoveFilm has, in a few years, become the leading online DVD rental outlet in the UK and across Europe.
The company previously offered a download service alongside postal delivery, but this ceased (at least temporarily) on 23 February 2009. Instead, the company has started a "watch online" service which offers over 4,700 films available to watch as part of subscription. This online viewing is available free for subscribers who have opted for one of their unlimited monthly rental plans; there is also some pay-per-view
Pay-per-view
Pay-per-view provides a service by which a television audience can purchase events to view via private telecast. The broadcaster shows the event at the same time to everyone ordering it...
content available to all.
History
In May 2002, Paul Gardner and Graham Bosher launched Online Rentals Limited (trading as DVDsOnTap), operating out of Harlow
Harlow
Harlow is a new town and local government district in Essex, England. It is located in the west of the county and on the border with Hertfordshire, on the Stort Valley, The town is near the M11 motorway and forms part of the London commuter belt.The district has a current population of 78,889...
, Essex.
In September 2003, William Reeve and Alex Chesterman launched ScreenSelect, operating out of Acton
Acton, London
Acton is a district of west London, England, located in the London Borough of Ealing. It is situated west of Charing Cross.At the time of the 2001 census, Acton, comprising the wards of East Acton, Acton Central, South Acton and Southfield, had a population of 53,689 people...
in West London. And in the same month Saul Klein launched Video Island, operating out of Kings Cross
Kings Cross, London
King's Cross is an area of London partly in the London Borough of Camden and partly in the London Borough of Islington. It is an inner-city district located 2.5 miles north of Charing Cross. The area formerly had a reputation for being a red light district and run-down. However, rapid regeneration...
in central London.
In October 2003, Online Rentals Ltd was bought by Arts Alliance Ventures, a family-owned private equity firm. In December 2003, DVDsOnTap rebranded to LoveFilm, appointed Mark Livingstone as CEO, and relocated to much larger premises in the Spire Green Business Park in Harlow, Essex.
ScreenSelect led what became a clutch of mergers across the UK dvd rental industry. In December 2003, this began with the acquisition of In-Movies. In September 2004, ScreenSelect followed up with the merger with Video Island, which combined ScreenSelect's management and brand with Video Island's venture capital.
The year 2005 saw both LoveFilm and ScreenSelect grow rapidly as fierce rivals - with strong backers the two firms leaped ahead of their rivals. LoveFilm reached 50,000 subscribers in December 2004, and shorty afterwards acquired the retail chain Choices' online business. By March 2005, it had reached 100,000 customers, and shipped almost 700,000 rentals. In June 2005, ScreenSelect acquired DVDs365 (owner of Mailbox Movies, MovieTrak and Qflicks) and a few months later LoveFilm acquired the tiny Webflix. Both rivals acquired a Scandinavian firm; ScreenSelect acquired BraFilm (a Swedish and Norwegian business), and LoveFilm acquired Boxman (operating in Sweden and Denmark).
By 2006 ScreenSelect had outgrown LoveFilm, with over 200,000 customers against Lovefilm's 100,000 users. In April 2006, LoveFilm and Screenselect merged under ScreenSelect's management and technology platform but the LOVEFiLM brand, and moved the headquarters to Acton - ScreenSelect's original base. By the end of 2006 the LOVEFiLM brand had replaced ScreenSelect, Brafilm and Boxman everywhere except Norway - which followed in 2008.
In February 2008, LoveFilm acquired Amazon's DVD rental business in the UK and German markets, and in return Amazon became the largest shareholder of LoveFilm.
Besides Amazon and Arts Alliance Ventures, venture capital firms Balderton Capital, DFJ Esprit, Index Ventures
Index Ventures
Index Ventures is a venture capital investment firm based in Geneva, Switzerland, with offices in London, Jersey, and starting in 2011, Silcon Valley. The firm was founded in 1996 by Neil Rimer and Giuseppe Zocco. Since its inception, the firm has raised four main venture funds and a growth...
and Octopus Ventures also have stakes in LoveFilm.
On 20 January 2011 it was announced that Amazon would take full control of the company.
Operate rental services for other companies
Besides its own DVD rental and purchase sites, LoveFilm also runs a number of such sites on behalf of other companies. The following is a list of current such white labelWhite label product
A white label product or service is a product or service produced by one company that other companies rebrand to make it appear as if they made it.-History:...
services operated by LoveFilm.
- CD-WOW! - an online retailer.
- Sofa Cinema - the GuardianThe GuardianThe Guardian, formerly known as The Manchester Guardian , is a British national daily newspaper in the Berliner format...
newspaper sponsors this site. - WHSmith Movies Direct - from the WH SmithW H SmithWHSmith plc is a British retailer, headquartered in Swindon, Wiltshire, England. It is best known for its chain of high street, railway station, airport, hospital and motorway service station shops selling books, stationery, magazines, newspapers, and entertainment products...
bookstore chain. - Tesco DVD Rental - Service for the TescoTescoTesco plc is a global grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues and the second-largest measured by profits...
supermarket chain website. - EasyCinema - Service in conjunction with the Easy Group.
- Odeon Direct - Service in conjunction with the OdeonOdeon CinemasOdeon Cinemas is a British chain of cinemas, one of the largest in Europe. It is owned by Odeon & UCI Cinemas Group whose ultimate parent is Terra Firma Capital Partners.-History:Odeon Cinemas was created in 1928 by Oscar Deutsch...
cinema chain. - Nectar DVD Rental - Service for the Nectar loyalty card
PlayStation 3 and LOVEFiLM Player
In November 2010 LOVEFiLM was released onto the PlayStation 3PlayStation 3
The is the third home video game console produced by Sony Computer Entertainment and the successor to the PlayStation 2 as part of the PlayStation series. The PlayStation 3 competes with Microsoft's Xbox 360 and Nintendo's Wii as part of the seventh generation of video game consoles...
, as with the online streaming service only members with packages that cost £5.99 or more have access to the streaming service .
Advertising
LoveFilm originally used partners to advertise its services but started to run TV adverts from 2006. Since then, the amount of white label services and partners has decreased, possibly due to increased brand awareness of the LoveFilm name. Since advertising on a regular basis on TV the company has used British male actors for voice overs - Simon PeggSimon Pegg
Simon Pegg is an English actor, comedian, writer, film producer, and director. He is best known for having co-written and stared in various Edgar Wright features, mainly Shaun of the Dead, Hot Fuzz, and the comedy series Spaced.He also portrayed Montgomery "Scotty" Scott in the 2009 Star Trek film...
, Ewan McGregor
Ewan McGregor
Ewan Gordon McGregor is a Scottish actor. He has had success in mainstream, indie, and art house films. McGregor is perhaps best known for his roles as heroin addict Mark Renton in the drama Trainspotting , young Jedi Obi-Wan Kenobi in the Star Wars prequel trilogy , and poet Christian in the...
, Bill Nighy
Bill Nighy
William Francis "Bill" Nighy is an English actor and comedian. He worked in theatre and television before his first cinema role in 1981, and made his name in television with The Men's Room in 1991, in which he played the womanizer Prof...
and Ray Winstone
Ray Winstone
Raymond Andrew "Ray" Winstone is an English film and television actor. He is mostly known for his "tough guy" roles, beginning with that of Carlin in the 1979 film Scum and as Will Scarlet in the cult television adventure series Robin of Sherwood. He has also become well known as a voice over...
{http://www.hackinglovefilm.com/2007/11/new-lovefilm-tv-advert-competition/}. As of 2009, the theme song for the TV ads is "It Must Be Love" by Madness
Madness (band)
In 1979, the band recorded the Lee Thompson composition "The Prince". The song, like the band's name, paid homage to their idol, Prince Buster. The song was released through 2 Tone Records, the label of The Specials founder Jerry Dammers. The song was a surprise hit, peaking in the UK music charts...
. LoveFilm advertise in multiple media - online, press, TV, train posters, door drops, promotions and even bathroom posters in clubs, pubs and service stations.
"Throttling" and dispute of fair usage policy
LoveFilm came in for criticism from users over its claim to offer "unlimited" DVD rentals. Some users reportedly found the company used long delays at the shipping stage to reduce the number of films a month a customer can rent. In 2006, before the merger with ScreenSelect, LoveFilm was subject of complaints to the Advertising Standards AuthorityAdvertising Standards Authority (United Kingdom)
The Advertising Standards Authority is the self-regulatory organisation of the advertising industry in the United Kingdom. The ASA is a non-statutory organisation and so cannot interpret or enforce legislation. However, its code of advertising practice broadly reflects legislation in many instances...
over the use of the word "unlimited" in their advertising. The ASA upheld the complaint. It was revealed that they practised throttling, where high-volume customers may experience a greater likelihood of (slower) shipments from alternate warehouses, and selections from lower in their rental list. They are also less likely to receive replacement shipments on the same day a disc is received. The company itself claimed that this "fair usage" policy means all customers get a similar service.
Dispute with Universal Pictures
In late November 2009, LoveFilm stopped adding new DVDs from the distributor Universal PicturesUniversal Pictures
-1920:* White Youth* The Flaming Disc* Am I Dreaming?* The Dragon's Net* The Adorable Savage* Putting It Over* The Line Runners-1921:* The Fire Eater* A Battle of Wits* Dream Girl* The Millionaire...
UK to the rental sector of their site. This made a number of films unavailable to users including Public Enemies, The Invention of Lying
The Invention of Lying
The Invention of Lying is a 2009 fantasy romantic comedy film that is written and directed by Ricky Gervais and Matthew Robinson. This film is the directorial debut of Gervais. The film stars Ricky Gervais as the first human with the ability to lie...
, Brüno
Bruno
Bruno is a male given name. It is derived from the Germanic word brun meaning "brown". It is also one of the most frequent Italian surnames. It also occurs very frequently in continental Europe and parts of Brazil as a given name for men and boys...
, Funny People
Funny People
Funny People is a 2009 American comedy-drama film written, co-produced and directed by Judd Apatow, and starring Adam Sandler, Seth Rogen, and Leslie Mann. The film was released on 31 July 2009 in North America, and on 28 August 2009 in the United Kingdom. Funny People uses considerably more...
, Inglourious Basterds and Kick Ass
Kick-Ass (film)
Kick-Ass is a 2010 superhero comedy film based on the comic book of the same name by Mark Millar and John Romita, Jr. The film was directed by Matthew Vaughn, who co-produced the film with actor Brad Pitt, and co-wrote the screenplay with Jane Goldman...
. This dispute has yet to be resolved and therefore LoveFilm no longer rents post-2009 films distributed by Universal Pictures
Universal Pictures
-1920:* White Youth* The Flaming Disc* Am I Dreaming?* The Dragon's Net* The Adorable Savage* Putting It Over* The Line Runners-1921:* The Fire Eater* A Battle of Wits* Dream Girl* The Millionaire...
.
See also
- NetflixNetflixNetflix, Inc., is an American provider of on-demand internet streaming media in the United States, Canada, and Latin America and flat rate DVD-by-mail in the United States. The company was established in 1997 and is headquartered in Los Gatos, California...
, a similar online video rental service model to LoveFilm but for North AmericaNorth AmericaNorth America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...