Two of the biggest online DVD (and increasingly download) rentals firms in UK, Lovefilm and Video Island, are to merge to create what they claim will be a subscriber base of 400,000 and a 17% market share of all DVD rentals in the UK.
Sales of the two companies totalled about $45 million in 2005. A new management team sees Video Island CEO Simon Calver becoming CEO of the merged company, which will operate under the Lovefilm name.
Release: Arts Alliance Media (AAM), the majority shareholder in LoveFilm will provide VOD and electronic sell through services to Lovefilm International under a long term commercial arrangement.