) LOVEFiLM announced a new streaming deal with NBCUniversal
International TV Distribution to extend the archive of films.
Lovefilm is Amazon's European DVD and streaming movie service,
which has almost 2 million subscribers. The service allows users
to rent, buy or subscribe to thousands of movies and TV episodes
via LOVEFiLM Instant.
The new series includes comedies like the U.S. version of The
Office starring Steve Carrell and the multiple award-winning show
30 Rock starring Tina Fey and Alec Baldwin. In addition to David
Hasselhoff's ultimate '80s cult TV classic Knight Rider, LOVEFiLM
will also add popular NBCU science fiction dramas like the smash
hit Heroes to its titles.
LOVEFiLM has already signed a number of TV deals with ABC, BBC
and ITV, consistently adding movies and television shows to its
streaming video service. The latest deal with NBCUniversal will
expand LOVEFiLM's already-large selection of movies and TV
episodes available to customers as part of their membership.
According to TechNavio's analyst forecasts, the Global Video
on Demand market is expected to grow at a compound annual growth
rate (CAGR) of 16.8% over the period 2011-2015. Amazon's LOVEFiLM
is well poised to capitalize on this million dollar opportunity
by expanding its collection of top TV and movie content via
Netflix Inc. (
) launched its unlimited online streaming services in the U.K. at
a monthly subscription rate of £5.99, something rivals Amazon's
Lovefilm and other online players such as Channel 4, the BBC,
British Sky Broadcasting Group plc and ITV plc will find hard to
match. However, Amazon's Lovefilm has an introductory
subscription price of only £4.99 per month, which is an
Amazon is one of the leading players in an extremely
fast-growing market. We think Amazon's Lovefilm will probably see
sales increasing, as subscribers take note of its improving
portfolio. In the last reported quarter, its International
segment revenue grew 7.5% sequentially and 19.8% year over year.
We believe such deals will strengthen Amazon's presence in
important markets all over the world.
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