Instant streaming service LoveFilm has been officially rebranded as Amazon Prime Instant Video this week as the firm attempts to mount a fight back against dominant rival Netflix.
LoveFilm was bought out by Amazon in 2011 in a deal estimated to be around £200m, and is now being combined with Amazon’s current service, Amazon Prime. The service was officially launched in the UK yesterday.
As part of the package, users will have access to Amazon’s 15,000 title-strong catalogue of movies and television shows, Kindle book loans and unlimited next-day delivery on Amazon products. Amazon has also pledged to continue heavy investment into new and archived content to commemorate the merger between the two companies.
This move also gives the company the opportunity to review its prices, with the new service set to cost users £79 a year, although Amazon is considering offering a discounted rate to its current customers and those of LoveFilm. Tim Leslie, Vice-President of Amazon Instant Video UK and Germany, has said:
“Consumers will be able to shop for what they want, read what they want and watch they want anywhere at any time.”
Amazon is hoping that its new service will challenge its main rival Netflix in terms of internet marketing and pricing strategies. Netflix currently charges £5.99 a month, the equivalent of £72 a year. Prime Instant Video’s price of £79 includes access to Amazon’s other services, making it cheaper than subscribing to all its separate services individually.