The Amazon Company is shutting down its DVD rental services in UK and also in Germany
The Amazon Company is shutting down its DVD rental services in the UK and also in Germany. These services are by the name of Lovefilm which was actually acquired by the firm in the year 2011 but its operations were confined to the two countries and not elsewhere in the world. The company said that although the streaming services are going at a fast pace but the DVD business is slowing down .There were around 50 people working at the Lovefilm. The company claimed that these employees will be offered some of the new roles within the company itself. The rental services of the Lovefilm is quite similar to the Netflix’s original business .Earlier there were growing number of people who were making the use of the streaming services but there is a sharp decline in the demand of the DVD and the blue ray discs on rent.
Amazon is closing down its DVD rental services on Oct 31 this year
The company’s spokesperson stated that it is closing down its DVD rental services on Oct 31 this year. Every affected employee who is working in the Lovefilm would be adjusted and would be given another fitting role within the company. Since the consumers have now moved to streaming, the demand for the DVD and blue Ray rentals has declined. This is the reason why the company is closing Lovefilm this October.
The Lovefilm was founded in the year 2002 in UK
The Lovefilm was founded in the year 2002 in UK which was later acquired by Amazon in the year 2011.But the offering of the rental services was just confined to the UK and Germany only. Well this has not come as a surprise for the speculators and even from the strategic perspective, it is making much more sense for the company to push all its customers towards the prime video offering. This is what the company is now intended to do. So the Amazon’s Prime Video is going to be an alternative .Even though the Netflix is also operating its DVD business but its numbers are substantially dropping down.
The Lovefilm just had 3 million subscribers across its DVD business
There are more than 4 million DVD customers who have already left and they are in fact having their own app for the management of the rental queue. But the streaming business is actually witnessing a robust growth. The Netflix which is a streaming giant has already beaten the expectations of the industry in the last two quarters. There were around 5.2 million new customers who were added up in the last quarter and the company is expecting around 10.8 million more subscribers by the end of the current quarter next month. Although Lovefilm has not shared its numbers but even at the peak it had just 3 million subscribers across the DVD business. The streaming arm Lovefilm was integrated into the Prime video of Amazon many years back.