Lovefilm/Video Island Merger
Lovefilm and Video Island are to merge to create a new company with a subscriber base of 400,000 and a 17% market share of all DVD rentals in the UK. The group will offer customers the largest DVD library in Europe, with more than 70,000 unique titles and 1.2 million DVDs and video games, as well as a Video-on-Demand service.
Lovefilm is the first company to offer movie downloads to rent and to own, and this merger can only accelerate its progress. Perhaps we're seeing the emergence of a new powerhouse in the video market, which must be frustrating if you're a shareholder in Blockbuster or Netflix - both of whom had a significant head start and haven't been able to take advantage.