AMAZON is to buy the 58 per cent of DVD and games rental firm Lovefilm it does not already own for an undisclosed price.
Lovefilm has built a business around renting films such as Avatar, pictured above, by post and has also started streaming digital movies.
"Lovefilm and Amazon have enjoyed a strong working relationship since Lovefilm acquired Amazon Europe's DVD rental business in 2008," Greg Greeley, Amazon's vice president of European retail, said.
"It's a natural complement to our business because we already have the retail offer."
Amazon owned a 42 per cent stake in privately owned Lovefilm after combining its own European rental operation with Lovefilm in 2008 and through buying out one of the company's venture capital backers.