The e-commerce giant said that while streaming is growing at a fast clip, the DVD business is slowing. It employs 50 people at Lovefilm and said that all of these employees would be offered new roles elsewhere within Amazon.
The Lovefilm DVD rental service, which was similar to Netflix’s original business and was acquired by Amazon in 2011, will shutter on Oct. 31 in both countries, effectively spelling the end of the brand, which does not operate in any other market.
As well as its Prime Video streaming service, Amazon offers OTT channel packages in the U.K. and Germany, which the company launched earlier this year.
“In the past years, a growing number of customers have made use of streaming services while the demand for renting DVD and Blu-ray discs has declined at the same time,” Amazon said in a statement out of its office in Germany. “We will therefore close down the Lovefilm DVD rental service on Oct. 31, 2017. We are planning to offer every affected Lovefilm employee another fitting role at Amazon. There are conversations about this happening at the moment.”
Amazon’s U.K. office added: “We have very much enjoyed delivering the Lovefilm by post service to our customers. However, over the last few years we’ve seen a decreasing demand for DVD and Blu-ray rental as customers increasingly move to streaming.”