Often referred to as the Netflix of Europe, Lovefilm, Amazon’s DVD rental company is going to be shut down. This DVD rental company is basically a leading European film subscription service with over two million members in the UK, Sweden, Denmark, Norway, and Germany which was bought by Amazon in 2011. It allows consumers rent DVDs that are sent out to them via mail which is quite similar to Netflix’s original business model before it ventured out into an online streaming service.
As per Amazon, DVD rentals by mail are no longer in demand, hence it has decided to shut down its rental company.
Explaining in an announcement posted on its website, Amazon declared that they have been witnessing a decreased demand for DVD rental and Blu-ray over the last few years as more customers are increasingly moving towards online streaming services.
As a result, Amazon will shut down the ‘Lovefilm by Post’ service on 31st of October, 2017. Moreover, the customers won’t also be billed for the last month either. This might be a slightly distressing news for the Lovefilm’s staff members but ostensibly Amazon has already found a workaround for them. Instead of letting the staff go somewhere else, Amazon will be giving them new roles at the company.
Moving forward, the company looks ahead at its own streaming service, Amazon Prime Video, formerly known as Lovefilm Instant, and believes it will be a perfect alternative to the Lovefilm. Further to that, it also offers a £15 discount to its Lovefilm subscribers on a new Fire TV Stick, bringing it down to a £24.99. While customers are completing the checkout process from the page at amazon.co.uk/firetvstick, a discount code will be emailed to them which they can use during checkout to avail the said discount.
Amazon’s decision of shutting down Lovefilm shouldn’t be surprising for the majority of the customers as they are already aware of the dominance online streaming has taken over them. Gradually, online streaming has surpassed the method of renting movies by mail.
Speaking of, we believe Netflix should also consider taking down its DVD business as its numbers are also dropping. Since streaming has witnessed an unprecedented growth over a span of few years, Amazon took a wise decision of shifting their entire focus on its streaming service, Amazon Prime Video. We hope this decision leads the company in the positive direction and reaps benefits for it in the long run.