LoveFilm has inked a major UK distribution deal with Metro-Goldwyn-Mayer Studios (MGM) to allow its members to watch MGM titles online and through its ‘Watch Online’ web player. It’s coup for the company as MGM has one of the largest film libraries of any Hollywood studio.
MGM Classics will be available to LoveFilm members as part of their subscription including golden oldies like West Side Story and The Apartment. New MGM releases will be available as they are released. LoveFilm has been compared to Netflix in the US.
However, I doubt this will do much to raise the spirits of its investors. LoveFilm original won seeding investment from The Accelerator Group way back in 2002, or the cretaceous period as it’s known, later getting a Series A from Index Ventures and Balderton Capital in 2003. Yes folks that’s eight years ago. So the question is when will it’s investor’s see a liquidity event – because in the scheme of things it’s pretty much over-due.