Amazon is close to setting up video streaming

ONLINE BOOKSELLER Amazon appears to be close to setting up its own video streaming system after buying the European equivalent of the US firm Netflix.

Online video rental service Lovefilm operates in the UK, Germany, Sweden, Norway and Denmark.

Amazon has a 42 per cent stake in the company and has now agreed to buy the rest of the streaming and DVD rental firm.

The acquisition, which was first rumoured in the UK a while ago, is expected to be sorted out in the next couple of months,

In a press release Greg Greeley, Amazon's VP of European retail said that Lovefilm and Amazon have enjoyed a strong working relationship since Lovefilm acquired Amazon Europe's DVD rental business in 2008.

Seven-year-old Lovefilm has deals with Sony Computer Entertainment and Samsung and has around 1.6 million subscribers.

The company first launched an online player in the UK last March and is expected to introduce similar services across its rental divisions in Norway, Sweden and Denmark soon, taking Lovefilm into direct competition with the Swedish video on demand service Voddler.

Simon Calver, the company's CEO, said that Amazon's unequivocal support will be good for the outfit's members. µ