Amazon Take All Of LoveFilm

If you already own 42% why not close the door and buy up the remaining 58%? That’s what Amazon effectively have done today in acquiring the remaining 58% in European film rental operator Lovefilm in a deal that is suggested to be around £200m. Amazon originally bought a 42% stake in Lovefilm in 2008.

Lovefilm was formed in 2004 as a film club sending DVDs to customers in the post and has now expanded into streaming digital movies to TVs and PCs and renting video games. It has some 1.6 million members in the UK, Germany, Sweden, Norway and Denmark.

Amazon clearly are eyeing up the wider media space and outside Europe, see US operator NetFlix, with a market capital of around £9.7bn and 16 million subscribers as both a potential threat and opportunity.

Despite having a very strong, stable and growing core business in DVD by post, Lovefilm has stepped up its movie streaming business, declaring that online was now its "primary" business. Equally, Netflix has announced its intention to expand, with Europe and the UK being a natural next step after Netflix Canada. Netflix's movie library is significantly larger than Lovefilm’s but Lovefilm should now be in a stronger position to defend itself against Netfix’s declared international expansion and with Amazon have a global brand and service leader.

This is obviously a good day for Lovefilm but we would suggest it is also a good day for Amazon who would want to have a global offer across all media.

Games Lights Go Out at Midnight

The South Korean government wants to limit the time children of school age spend playing online games barring online gaming access between midnight and 8am. The also want to degrade the individual’s internet connection after they have been logged on to certain games for a long period of time. Parents can also choose to be notified if their identity is used online. The Culture Ministry expects games developers to implement the plans.

In a backlash to the recent horrific story where a couple spent some 12 hours a day in internet cafes raising a virtual child online while their real baby daughter starved has made the headlines. The couple were charged and found guilty of negligent homicide.

How can the government succeed? How do you know who is playing what, when and for how long?

The answer is that South Korean national identity numbers are used by all young and old and are seen as the means of identification. The Korea Herald reports that 3 popular virtual world games, Barameui Nara, Maple Story and Mabinogi, intend to introduce the curfew later this year and "Dungeon and Fighter" and "Dragon Nest" will pilot the connection slowing scheme. Surprisingly a total of 19 role playing games which represent the majority of the online gaming market in the South Korea will join the initiative.

However honourable the initiative is the identification is down to an ID card which can be borrowed, stolen and no doubt spoofed. It hoped that they don’t switch off all the lights after midnight, or don’t stop someone reading for too long. It will be interesting to hear from the market when we are there next month to speak at their Book Fair.

Games are not just for Christmas

What would be your reaction be if your agent says that they have an offer to turn your book into a game? Would you hesitate or jump at it?

Verdict Research report a huge shift in consumer attitudes has turned video games into the UK's most popular form of entertainment and that sales will outstrip music and video for the first time in 2008. They predict games spending will rise by 42% to £4.64bn in 2008, with sales on music and video combined at £4.46bn.

We have all seen the massive impact that major new titles such as Grand Theft Auto IV and FIFA 08 have had on the games market. In addition the Nintendo Wii continuing has continued to broaden the appeal of games. Entertainment Retailers Association (ERA), most recent figures for 2007 show sales of actual games software at £1.7bn, compared to £1.4bn in music sales and £2.2bn for video revenues.

The question is what comes first; the story or the game?

Educational Games

Doug Thomas, an associate professor at the University of Southern California's Annenberg School for Communication, is developing a game for students ages 10 to 12. He believes that games teach students to experiment and grasp ideas in ways that textbooks don’t.

"Modern Prometheus," uses the story of "Frankenstein" to teach ethical decision making, with the student being forced to make a series of choices that impact the game's outcome. The student must help the doctor cure a plague that is threatening the town. Do they steal body parts from a cemetery, a key requirement for curing the disease.

The students play the hour-long game individually, then discuss their choices with their teachers and classmates.
Thomas is also collaborating with Professor Sasha Barab, of Indiana University whose "Quest Atlantis" game is used by 4,500 students around the world.