LoveFilm, the online DVD rental site, is to acquire Amazon Europe's UK and German DVD rental business.
As part of the deal, Amazon will promote LoveFilm's services on its UK and German websites. The merger of the two DVD rental businesses will result in a combined subscriber base of 900,000 customers, claims LoveFilm.
"Customers are faced with an astonishing array of choices in the home entertainment world these days," says Simon Calver, CEO of LoveFilm International. "We will ensure that Amazon Europe's customers get the best possible DVD rental service."
LoveFilm currently offers more than 65,000 DVD titles on its site, with prices starting at £3.99/month for two discs, rising to £14.99 for an unlimited number of discs each month. Discs are delivered by first class post to your home, and can be returned in the pre-paid envelope provided.