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Amazon Shuttering Lovefilm Disc Rental Biz

15 Aug, 2017 By: Erik Gruenwedel

Amazon will shut down disc rental service Lovefilm By Post in the United Kingdom and Germany Oct. 31, citing waning demand for packaged-media rental.

Launched in 2002, Lovefilm delivered movie disc rentals by mail, in addition to over-the-top video via Lovefilm Instant. In 2014, owner Amazon rebranded Lovefilm Instant Amazon Prime Video, while maintaining by-mail disc rental under the Lovefilm brand.

“We have very much enjoyed delivering the ‘Lovefilm By Post’ service to our customers. However, over the last few years we’ve seen a decreasing demand for Blu-ray Disc and DVD rental as customers increasingly move to streaming,” Amazon said in a statement.

The e-commerce behemoth said it would offer Lovefilm By Post subs a £15 ($19.45) discount on a Fire TV stick.

Lovefilm might have stuck around if it could match rival Netflix. The SVOD pioneer’s legacy by-mail disc rental service generated a $62 million operating profit on revenue of $115 million in the most-recent fiscal period. The segment generated $71 million operating profit on revenue of $139 million a year ago. Total subs topped 3.75 million, unchanged from the same-period a year ago.

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