Amazon loves film: Internet giant snaps up Lovefilm

Internet retail giant Amazon yesterday unveiled a deal giving it full control of film and games subscription business Lovefilm.

The US-based group already owned 42 per cent of Lovefilm, which has 1.2 million members in the UK, but has now agreed to buy the rest of the company from its other shareholders, which include four venture capital firms and staff.

Lovefilm, which sends its members DVDs and games through the post or streams movies or TV shows to their computers or TVs, will continue to operate under its own brand. No value has been placed on the takeover but reports have suggested the deal valued Lovefilm at about 200 million.

Amazon plans to grow the business with the help of its massive customer base and its movie website IMDb, said a source close to the deal.