LoveFilmis continuing its European expansion. The online DVD rental company,headquartered in London, haslaunched LoveFilm Deutschland in Germany. Inestablishing the German business, LoveFilm has struck a strategic partnershipwith postal and logistics company Deutsche Post WorldNet Group.
For thisinitial launch, LoveFilm will provide the website, customer and marketing supportand project management to run fulfillment, customer service and banking, whileDeutsche Post will run the operational fulfilment through its corporateinfrastructure, including DHL and Postbank.
'Thiswill be an exciting first year for LOVEFiLM Deutschland and we look forward todeveloping a market-leading service for our German customers offering thechoice, value and convenience that has helped us growour LOVEFiLM brand in the rest of Europe," said SimonCalver, chief executive of LoveFilm. "We are fortunate to be partnering withDeutsche Post on this launch, as their world-class infrastructure and logisticsexpertise provides the perfect complement to our experience in the field ofon-line DVDrental.'
The Germanexpansion follows LoveFilm's acquisitions of three companies in Scandinavia:Digitarian, Brafilm and Boxman. LoveFilm now has more than 450,000 subscribersin the UK, Sweden, Norway and Denmark.
LoveFilmalso announced that it had surveyed 5000 of its existing UKcustomers as it examines trends related to its growing video-on-demand business.Of those customers, 90% said they were aware of online video and 80% had watchedsome kind of online video (from trailers to viral content to feature films). AlthoughCalver noted that DVD rentalwould continue to be the largest part of LoveFilm's business for years to ocme.