ARTS ALLIANCE MEDIA BUILDS LOVEFILM
BY ACQUIRING SWEDISH DVD RENTAL COMPANY, BOXMAN
Deal makes AAM the first player to expand into Europe
LONDON, 21st July 2005 - Arts Alliance Media (AAM), the pioneer provider of digital cinema and film delivery services, has taken a controlling stake in Swedish online DVD rental company, Boxman. AAM is already the majority shareholder in LOVEFiLM, the UK market leader in the online DVD rental space. Its controlling stake in Boxman makes it the first player in the market to expand its reach internationally.
LOVEFiLM is the clear leader in the UK market and was the first company to pass the 100,000 subscriber mark. It offers the widest range of titles in the UK, with over 34,000 to choose from. Boxman is a good fit as the second largest online rental DVD rental company in Sweden, with over 14,000 subscribers. Boxman was established in Sweden in 2003 with the ambition of creating a leading on demand entertainment service, with the initial focus on delivering online DVD rentals to customers across Scandinavia.
AAM chose Boxman because of its strong management team and fast growth strategy. It plans to use Boxman as a base for further Scandinavian expansion.
“The deal with Boxman is a logical step in our plans to expand our reach outside the UK,” said Howard Kiedaisch, chief financial officer, Arts Alliance Media. “With this deal, we will become the largest online rental service available, with a firm international footprint in Europe. The joint power of Boxman and LOVEFiLM will be not only the largest, but also the most effective player in the market, providing a reliable, good quality service to the consumer.”
“We looked across Europe to find the right company to partner with, and found the perfect solution in Boxman. The team has clearly demonstrated impressive ability in this market, achieving a great deal in a short space of time,” said Mark Livingstone, chief executive officer of LOVEFiLM. “We’re really excited about working with such a thriving, film-focused company.”
Following the deal, Boxman will retain its own brand and employees, as well as its key partners, including TV 4, Phillips, Aftonbladet and Tradera.
“We’re looking forward to working with LOVEFiLM,” said Jonas Svensson, CEO, Boxman. “We were very careful in choosing who we work with and LOVEFiLM was not only the largest established player, but also the most dynamic and solid in terms of management and operational capability.”
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Notes to Editors
About Arts Alliance Media
AAM provides technology-based film delivery and marketing services to consumers and the industry. AAM operates in digital cinema having completed over 50 digital installations and recently won the UK Film Council bid to install 240 screens in the UK creating the largest funded digital screen roll out to date. As the operator of LOVEFiLM (the UK's leading online DVD rental service) and provider of cinema operations and CRM tools, AAM strives to improve the consumer experience for film consumption both in the home and in the theatre.
More information about Arts Alliance Media can be found at www.artsalliancemedia.com
About LOVEFiLM
LOVEFiLM was awarded the prestigious British Video Association’s 2005 award for the UK’s Best Rental Service
Webuser independently awarded LOVEFiLM Best Service in the UK, “What LOVEFiLM does so ingeniously is make the process of renting DVDs so engaging that you can’t but help develop a greater interest in film.” (Webuser, March 2005)
LOVEFiLM is the UK’s largest online DVD rental service with over 34,000 titles available to rent at www.LOVEFiLM.com and a user base of over 100,000 subscribers.
LOVEFiLM offers a range of packages. Packages include £9.99 a month, allowing members to have one DVD out at any one time, £14.99 gives the option of three DVDs, whilst £19.99 allows you four DVDs at a time. These packages include unlimited DVD rentals each month, free postage and no late fees.
New light-viewing packages are now available starting at £4.99 fixed at 2 rentals per month.
LOVEFiLM is also available via a number of other retailers and partnerships, including:
- Sainsbury’s (http://www.sainsburysdvdrental.co.uk)
- Sony (www.lovefilm.com/sony)
- Guardian (http://www.sofacinema.co.uk)
- CD-WOW (http://dvdrental.cd-wow.com)
- WHSmith (www.whsmith.co.uk/moviesdirect)
- Five (http://www.fivemovieclub.tv/)
- BCA (http://www.clubextradvd.co.uk)
- Wanadoo (http://www.wanadoo.lovefilm.com)
- Tiscali (http://tiscali.lovefilm.com)
- Film Four (http://www.filmfourdvd.com)
- lastminute.com (http://dvd.lastminute.com)
About Boxman
In 2005 Boxman was appointed to be the Best Rental Service by Sweden’s most respected DVD magazine “Allt om DVD”.
Boxman.se is the only rental service website that offers personal recommendations and reviews from critics.
Boxman has a very active base of subscribers, 97% of them have rated their rentals.
Boxman has the largest selection of films in Sweden with close to 7000 titles.
Boxman offers a range of packages similar to LOVEFiLM. The packages always include unlimited DVD rentals each month, free postage and no late fees.
Boxman recently launched a light-viewer package with great success, the package includes one DVD out at any one time for only £ 9.40 a month.
Boxman has over the years had a wide range of collaborations with some of the largest companies in Sweden:
- Svenska spel (The largest gaming company in Sweden)
- Stockholm’s film festival
- Siba (One of the leading players within home-electronics in the Nordic region)
- Philips (A leading company within healthcare, lifestyle and technology)
- Stjärnurmakarna (Sweden’s largest watch-retailer)
- Cloetta Fazer (The largest producer of chocolates and sweets in the Nordic region)
- Estrella (kraft foods) (One of the global leaders in branded foods and beverages)