The move is one of the few times Amazon has divested itself of on of its business streams.
According to a Marketwatch report, LoveFilm will benefit from a multi-year marketing agreement with Amazon, including promotion on Amazon.co.uk and Amazon.de. The combined business will have 900,000 subscribers, of which 300,000 come from Amazon.
Investors in Lovefilm include Arts Alliance Media, Benchmark Capital, Esprit Capital Partners and Index Ventures.
The financial details of the deal were not disclosed.