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Financial Times: Lovefilm strengthens digital ability

Lovefilm, the DVD mail order rental company, is looking to accelerate its digital distribution push with the hiring of two new board members.

The company has appointed UK gaming specialist Kristian Segerstråle, the chief executive of Playfish, which was acquired by Electronic Arts, and Roland Steindorf, who helped develop Kabel Digital, a German digital cable pay-TV platform.
The move comes as the company’s chief executive Simon Calver and chairman Charles Gurassa have been beefing up both its management and board capabilities.

It appointed Guardian Media Group’s director of digital strategy and development, Simon Waldman, as Lovefilm’s head of DVD rental subscription service, taking charge of the website. Dawn Airey, who is leaving Five as chairman and chief executive following the UK channel’s acquisition by the Daily Express publisher Richard Desmond, joined the company as a non-executive director in June.
While Lovefilm – which is backed by venture capital firms Arts Alliance Media, Index Ventures, Balderton Capital and DFJ Esprit – has long been regarded as an IPO candidate, the company is focused on increasing value by moving from a traditional DVD rental operation to a digital downloading business. There are no immediate plans to float.

The company, whose list of investors also includes Amazon, abandoned talks with private equity firms including KKR and Silver Lake Partners last year.

Lovefilm has also sought to bring its internet library of films direct to the television set through deals with Sony and Samsung. The TV manufacturers are offering sets that can be connected directly to the internet, where users can download films directly from Lovefilm’s digital library.

http://www.ft.com/cms/s/0/b06ede5c-b8f2-11df-99be-00144feabdc0.html