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21 March 2007

LoveFiLM makes the move to download to burn movies

LoveFiLM, Europe’s largest online DVD rental specialist, this week took its first tentative steps into download to burn video services.

LoveFiLM had already launched a download service in April last year, but has come out with an advertising supported free service restricted to existing customers, as well as a paid download to burn service.

LoveFiLM has built its own download manager which allows consumers to download Hollywood movies and securely burn them to a blank DVD using technology from German specialist Flux-DVD. The company now has 2,500 videos in its download service which includes content from Warner Brothers, Sony Pictures, Universal, Momentum, Icon, Tartan and Freemantle, but only 100 of these are available in download to burn formats.

The download to burn innovation follows internal research by LoveFilm, which showed 57% of consumers wanted the ability to burn movie downloads to a DVD.

Simon Calver, CEO of LOVEFiLM.com, said, ‘Download to burn is the next step in the evolution of movie purchasing and viewing. Whereas consumers may have been reluctant to watch films directly on their PC, they now have the choice to burn a huge library of films to DVD and watch them on their preferred medium of choice, and all without having to leave their living room.’

All download titles come with Dolby AC-3 Surround Sound and special features will be added as and when they are made available by movie studios. The security system is provided via Flux-DVD and the discs are protected using SecureBurn technology preventing unauthorised copying of the DVD. Prices start from £9.99 per film.

Download time is approximately 30 to 90 minutes with the burning to DVD taking as long as the play time of the movie ‘ meaning consumers can go from download to completed DVD in as little as two hours.

We have said before that many online movie services from companies already in neighboring businesses are about churn reduction in their core business, rather than a genuine attempt to create new revenues, and at present this looks like the LoveFiLM service might fall into that category. The online services are almost invisible on the main LoveFiLM site and the system continually suggests renting a DVD online.