Hollywood Reporter
April 7th 2006
Merged LOVEFiLM serves 17% of online Brit rentals
By Ray Bennett
LONDON -- British Internet DVD rental firms LOVEFiLM and Video Island said Thursday that they will merge and operate under the LOVEFiLM brand serving a combined subscription list of 400,000.
No financial details were revealed for the 50-50 merger that the companies said will give them 17% of online rental transactions in the U.K. and a strong presence in Sweden, Denmark and Norway.
They said in a statement that the combined operation will offer more than 70,000 unique titles, 1.2 million DVDs and video games, and will ship more than 2 million DVD rentals each month.
Video Island CEO Simon Calver will be CEO of the combined operation, while LOVEFiLM CEO Mark Livingstone will step down to become a consultant to the group, the statement said.
"For three years, both companies have done an excellent job changing the way DVDs are rented in the U.K. and Scandinavia, by providing customers with unparalleled value, choice and convenience," Calver said in a statement. "Together we will be a stronger company offering better features and service."
Investment bank Altium advised on the merger, which requires shareholder approval.