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LOVEFiLM and Warner Seal Multi-Year Deal

Amazon.com, Inc. announced that Warner Bros. has signed a multi-year film distribution agreement with LOVEFiLM.

For more information visit: www.lovefilm.com


Unedited press release follows:

Warner Bros. and Amazon’s LOVEFiLM Seal Major Multi-Year, Multi-Layered UK Movie Partnership

SEATTLE–Amazon.com, Inc. (NASDAQ: AMZN): Warner Bros. has signed a major film distribution agreement with LOVEFiLM it was announced today by Josh Berger, President & Managing Director, Warner Bros. UK, Ireland & Spain, and Simon Calver, Chief Executive, LOVEFiLM.

The multi-year, multi-layered pact offers consumers wider choice and more access to Warner Bros. content across a range of options. The deal spans LOVEFiLM’s digital subscription, download to own and pay per view services, as well as Warner Bros.’ branded SVOD service WarnerFilms.

An exclusive second window subscription pay TV deal will see Warner Bros.’ recent and forthcoming film releases added to LOVEFiLM’s Watch Online service through the LOVEFiLM Player, either on the PC or accessible via Sony PlayStation®3, Apple iPad, a growing number of web-enabled TV sets and Blu-ray players, and later this year Microsoft Xbox 360.

Movies exclusively available at the start of the deal in December will include The Dark Knight, The Hangover, Gran Torino and Sex and the City 2. And, in the coming months and years, LOVEFiLM customers, who subscribe to streaming as part of their package, will be able to instantly watch a regular flow of Warner Bros.’ recent movies.

Underscoring both companies’ commitment to giving customers a broad-ranging set of options to watch Warner Bros.’ content, the deal continues to make the studio’s film releases available for purchase or rent digitally; via LOVEFiLM’s market-leading DVD and Blu-ray subscription rental service, through which DVDs and Blu-rays will be available by post 60 days after retail release, from 2012; and via Warner Bros.’ branded SVOD channel, WarnerFilms. Scheduled by Warner Bros. and offering a great selection of recent and classic movies from Warner Bros.’ portfolio of titles, WarnerFilms provides 24 hours a day on-demand access to 28 movies at any one time with seven new titles added every week.

Commenting on the agreement, Josh Berger, President and Managing Director, Warner Bros. UK, Ireland and Spain, said, “This significant deal with LOVEFiLM and its parent company Amazon takes a 360 degree approach to delivering Warner Bros.’ world-class movies across multiple business lines. Now, LOVEFiLM customers will enjoy more ways of enjoying great film content, all with the ease that the service has become known for.”

Jeffrey R. Schlesinger, President, Warner Bros. International Television Distribution, added: “The establishment of a second pay window with LOVEFiLM is an important evolution in the way films are made available for viewing in the UK in ever-more convenient ways. Importantly, the structure of the deal ensures that our films continue to retain their value to linear and non linear operators following this window and for the long term.”

Simon Calver, CEO of LOVEFiLM, added: “This major deal builds on our partnership with Warner Bros. and gives LOVEFiLM members exclusive access to world-class movies across multiple platforms. We are committed to delivering the best entertainment service possible – giving our members the content they want on the platforms of their choice.”

Notes to editors
In a little over seven years, LOVEFiLM has become a leading European film subscription service, combining the benefits of DVD rental by post and, more recently, watching movies online via the LOVEFiLM Player (on the PC, PlayStation®3, iPad® and other in-home connected living room devices). Customers choose from a selection of over 70,000 titles available across Blu-ray, DVDs, video games and digital streaming. LOVEFiLM currently has 1.8 million members and operates in the UK, Germany, Sweden, Denmark, and Norway.

In February 2011 LOVEFiLM was acquired by Amazon EU SARL.

LOVEFiLM has been a pioneer in digital film delivery in the UK since launching the first download to own movie in April 2006. The LOVEFiLM Player launched in March 2010 and offers thousands of digital titles available for members to watch on their PC, PlayStation®3, iPad® and other in-home connected living room devices. For those on an Unlimited or capped package the service comes at no extra cost. Premium titles are available to everyone on a pay-per-view basis, and a number of titles are available to all site visitors for free with advertising support.

The LOVEFiLM Player is available on over 175 Internet-enabled devices – including Sony, Samsung, PS3™ and the iPad® – streaming movies instantly to subscribers over the internet.

LOVEFiLM customers have generated 80 million film ratings and written 843,000 member reviews – information which helps LOVEFiLM to promote the most relevant titles for its customers to choose from.

LOVEFiLM offers a range of rental options in each market with free postage and no late fees. In the UK these include £4.99 a month allowing members to have one DVD at a time (limit of two per month. Does not include online viewing), £5.99 a month for one DVD at a time (limit of three per month plus 2 hours online viewing), £8.16 for two DVDs at a time (limit of four per month plus 4 hours online viewing), £9.99 a month for two DVDs out at a time (Unlimited DVDs by post and unlimited online viewing) and £13.27 for three DVDs at a time (Unlimited DVDs by post and unlimited online viewing). Members on an Unlimited package have access to the LOVEFiLM Player at no extra cost.

LOVEFiLM also offers a range of video games rental options in the UK market to support gaming across Xbox 360, Xbox, PS3™, PS2, Wii and DS. These include £5.99 a month for one disc at a time (limit of two per month. Does not include online viewing), £11.22 a month for two discs at a time (Unlimited discs by post and unlimited online viewing) and £14.99 a month for three discs at a time (Unlimited discs by post and unlimited online viewing), all with free postage and no late fees.

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