LoveFilm Gives Netflix a Heartache
NEW YORK (
) --
Netflix
(NFLX) - Get Netflix, Inc. Report
has another obstacle in its international expansion, as
Amazon
(AMZN) - Get Amazon.com, Inc. Report
ramps up distribution of its
LoveFilm
content in the U.K.
The e-commerce giant announced on Tuesday that LoveFilm will be available starting Wednesday on
Microsoft's
(MSFT) - Get Microsoft Corporation Report
Xbox Live.
"LOVEFiLM members in the UK can access our content in another exciting, innovative way and all for one straightforward price, said LoveFilm CEO Simon Calver. "The simplicity of our pricing and the ease with which customers can use LOVEFiLM Instant should make us the first choice for those customers who want fantastic entertainment at great value for money, anytime, anywhere."
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This comes shortly after Netflix announced that it is expanding its business into the U.K. and Ireland. Costs associated with international growth are expected to weigh on the company's bottom line, and management foresees a loss for all of 2012.
Amazon has been ramping up its LoveFilm offerings, last month striking a deal with
Warner Brothers
, its first deal with a major Hollywood studio.
Netflix has signed deals with
Miramax
,
Lionsgate
and
MGM
for films for its U.K. service.
-
Reported by Jeanine Poggi in New York.
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