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Amazon buys Lovefilm DVD service

20 January 2011 Last updated at 15:47 GMT

Amazon has agreed to buy online movie rental service Lovefilm.

The internet retailer already had a significant stake in the group - but London based Lovefilm says the deal would help the company improve its online services.

Lovefilm, which began as a pure DVD rental company in 2002, has more than 1.6 million subscribers with significant interests in Germany and Scandinavia.

Simon Morris is Lovefilm's chief marketing officer and he told the BBC he hoped the move would bring a period of ''accelerated growth''.