Lovefilm look set to be heading in the same direction as Netflix when it comes to their most focused product, as the Amazon-owned UK rental service revealed that for the first time in its history, sales of their online streaming services have beaten figures from physical media (DVD, Blu-ray and video games).
The results, covering the period of February, have noted that around 20% more ‘streaming’ transactions have occurred on Lovefilm in relation to post-based rental, while overall figures show that online movie streaming has seen a 400% increase from same-market figures by the company in February 2011.
However, it has been a good year all round for them, with more ‘traditional’ DVD users not needing to worry about their medium becoming obsolete, as Lovefilm’s physical rental figures have also increased, albeit at a comparatively meagre rate of 25%, meaning that streaming is becoming the more popular method out of its own better rate of growth as opposed to the failure of other approaches.
Lovefilm managing director Jim Buckle said of the rise of movie streaming online: “In less than three years, streaming through Lovefilm Instant has become more popular than renting DVDs. Our members crave instant on-demand access. With more world-class digital content being added to Lovefilm Instant and a growing number of Internet-connected devices delivering it to members’ living rooms we expect this trend to continue.”
In addition to the high usage statistics, it was reported earlier in the year that Lovefilm clocked up their two millionth member in January, which will be seen as vital progress in trying to hold of the regional emergence of Netflix. Despite the introduction of the American-based industry giant, Lovefilm seem to have shown solid figures so far, but will they be able to keep them up?