Press Releases

22/03/2005

LOVEFiLM.COM first to reach 100k subscribers

LOVEFiLM.com, Europe's largest online DVD rental company this week notches up its 100,000th subscriber.

LOVEFiLM alone now accounts for more than 6% of the entire UK DVD rental market. It has also released research that indicates over half of this growth is being achieved with entirely new renters. "We are delighted to be the first company by a considerable way to reach the milestone of a hundred thousand members", says Mark Livingstone, LOVEFiLM's CEO.

"When you consider that 96.8% of customers actively recommend LOVEFiLM, this growth is set to continue."

In March 2005 LOVEFiLM dispatched nearly 700,000 individual DVDs to members. This represents 6.5% of the entire UK market*.

Livingstone continues, "To coincide with this industry milestone, LOVEFiLM has released new market research results conducted across its entire subscriber base. The headline result is that LOVEFiLM has grown the rental market overall. 54% of our user base had stopped using high street rental outlets prior to signing up to LOVEFiLM. Therefore, these are new customers and new revenue streams to the entertainment industry - In effect, turning non-renters into enthusiastic rental consumers who are now watching over eight DVDs on average per month."

Other key findings are

• 86% of customers rated LOVEFiLM DVD rental better value than previous video store rental.
• 80% feel that they are watching more, and a wider range of films as a result of their own online DVD rental use.
• 40% are also buying more DVDs as a result of their increased exposure to film through online DVD rental.
• 20% of LOVEFiLM subscribers have stopped watching Sky Movies.

Livingstone concludes, "Our growth is testament to a strong LOVEFiLM brand and an exceptional consumer experience. Unlike "me too" DVD rental services, we give customers the films they want, when they want them, from their queue list offering the widest range of titles available."

To put this into further perspective, LOVEFiLM has achieved this growth faster than the global online DVD rental pioneer and U.S. market leader, Netflix. It took 18 months to reach the one hundred thousand subscriber mark in the U.S., while LOVEFiLM.com launched in January 2004, has taken less than 14 months.

*Based on M.R.I.B. Rental Monitor