Lovefilm.com

“We are the place on the web people visit to find films they want to watch,” says Andrew Ground, UK managing director of Lovefilm.com, and the numbers back up his claim. The company now has over 600,000 subscribers, and its client base is set to grow exponentially following a partnership with one of the world’s biggest online brands, Amazon.

Striking this deal is demonstrative of how well established Lovefilm.com has become. “For one of the biggest brands in the world to instil trust in us is very exciting,” he says. The terms of the deal mean that Lovefilm.com has acquired Amazon’s DVD rental business in the UK and Germany, while Amazon bought a 30% share of the company for a reported £70m – a bold move considering Lovefilm has yet to become profitable.

The Retail Leisure Business of the Year award is recognition of the London-based company’s meteoric growth and disruptive nature. Since forming in 2003, Lovefilm has captured approximately 70% of the online DVD rental market. The impressive pace of growth and costly marketing drives have been at the expense of profit, but despite this, the judges were impressed with the “essence of entrepreneurial zest” that Lovefilm displayed.

Even as the DVD rental market continues to be “squeezed from all sides”, Lovefilm is going from strength to strength. But over the next few years, Ground expects its focus to broaden. “Video on demand or download is the future, but just not right now,” he says. “No one has got the offer cracked yet.

Company stats Company: Lovefilm.com Founder: Andrew Ground; chief executive: Simon Calder Founded: 2003 Turnover 2006: £41m Turnover 2007: £50m Web:www.lovefilm.com