LoveFilm has chosen the 'start-up' rather than the acquisition route for its entry into Germany - in partnership with Deutsche Post.
No doubt Deutche Post has looked with envy at the 2m+ DVDs travelling back and forth from LoveFilm via the Royal Mail in the UK and wants to see its home market really get moving.
LOVEFiLM, Europe's leading on-line DVD rental company has announced its entry into Germany with the launch of LOVEFiLM Deutschland AG.
In a short period of time LOVEFiLM International has established itself as a leader across Europe with over 450,000 subscribers and is already managing over one in five DVD rentals in the UK.
This is LOVEFiLM's first start-up in continental Europe following the acquisition of three companies in Scandinavia: Digitarian, Brafilm and Boxman. This launch is in line with LOVEFiLM's aim of expanding into new territories while growing existing market share in its established markets.
LOVEFiLM's entry into Germany also marks a strategic partnership with the Deutsche Post World Net Group, the leading global postal and logistics services company.
For this initial launch phase LOVEFiLM is to provide the website, customer and marketing expertise and project management to run fulfillment, customer service and banking, while Deutsche Post will run the operational fulfilment through its corporate infrastructure, including DHL and Postbank.
Simon Calver, chief executive of LOVEFiLM, commented: "This will be an exciting first year for LOVEFiLM Deutschland and we look forward to developing a market-leading service for our German customers offering the choice, value and convenience that has helped us grow our LOVEFiLM brand in the rest of Europe.
"We are fortunate to be partnering with Deutsche Post on this launch, as their world-class infrastructure and logistics expertise provides the perfect complement to our experience in the field of on-line DVD rental."
Michael Mews, Director of Central Key Account Management within the Postal and Telecommunication Division of Deutsche Post AG commented: "We are delighted to be working together with LOVEFiLM, Europe's leading company in this field. LOVEFiLM is an excellent, flexible and highly competent partner with a great deal of experience, especially in white label solutions."