For some time now, Amazon has been considered a potential buyer for Netflix. With Netflix’s stock rising more than 250% in the last year, Amazon has likely missed its chance to pick up Netflix cheaply. Amazon has made another acquisition in the same vein, however: UK-based streaming and DVD-by-mail company Lovefilm.
Lovefilm offers Europeans a very similar service to Netflix, offering around 70,000 discs for rental by mail and about 7,500 streaming titles.
This new acquisition could allow Amazon to leverage Lovefilm’s offerings to compete with Netflix more directly stateside, and would also put the two companies head-to-head if/when Netflix rolls out a European service.
Will the Lovefilm acquisition turn out to be a good thing for Amazon? The next few months and years will tell. Visit the comments and let us know what you think about Amazon’s latest purchase.