Online DVD renters form alliance
Lovefilm acquires Moviechoices database
Two leading online DVD rental operators have joined forces in the face of increasing competition in the sector.
Lovefilm is acquiring the Moviechoices customer database from owner Home Entertainment Corporation, while HEC will, in turn take responsibility for Lovefilm’s stock management and procurement. The plan is for Moviechoices.com customers to gradually switch to Lovefilm.
Lovefilm has also agreed an exclusive three-year partnership with home shopping specialist BCA, which currently works with Moviechoices, to provide an online DVD rental service to BCA’s 1.5m UK members.
Mark Livingstone, chief executive of Lovefilm, said: “This is a great deal for Lovefilm and Moviechoices.com, as well as the consumer. By adding the Moviechoices.com database to the market leader we have established an even stronger lead in this market.
“Furthermore, by eliminating the direct competition between the two companies, we can now work more closely on initiatives to grow our service.
“Clearly, the exclusive marketing deal with BCA is a great example of this. BCA are the experts in marketing entertainment services to a proven audience – this is the audience that has been the foundation of Moviechoices.com to date, and now, together we will continue to create and promote co-branded Lovefilm initiatives to that very responsive customer base.”
Iain Muspratt, chairman of HEC, said: “We have always been impressed with the Lovefilm operation and believe these arrangements provide an excellent base from which to participate in this market by drawing on the strengths of all the organisations involved to the benefit of our customers and all concerned.”
Tim Schiffers, commercial director of BCA, said: “I am very pleased with what HEC and BCA have achieved to date with the Moviechoices.com venture, but in this very competitive market place it was a logical next step for us to join forces with the market leader.”
Lovefilm already has strategic links with retailers including WHSmith, Sainsbury’s, Woolworths and MVC, and CD-WOW, and brand partnerships with Sony and lastminute.com. HEC also operates the Choices Video rental store chain.
