UK DVD/Online PLayers Lovefilm and Video Island To Merge

Two of the biggest online DVD (and increasingly download) rentals firms in UK, Lovefilm and Video Island, are to merge to create what they claim will be a subscriber base of 400,000 and a 17% market share of all DVD rentals in the UK.
Sales of the two companies totalled about $45 million in 2005. A new management team sees Video Island CEO Simon Calver becoming CEO of the merged company, which will operate under the Lovefilm name.
Release: Arts Alliance Media (AAM), the majority shareholder in LoveFilm will provide VOD and electronic sell through services to Lovefilm International under a long term commercial arrangement.