LoveFilm, the DVD postal subscription service that currently covers the UK, Germany and Scandinavia, might target new territories with a digital only service.

LoveFilm says it would consider a streaming only service for certain markets. The criterion would include the expansion of the connected TV market and the availability of rights; a UK streaming only service, for instance, is hampered by Sky’s dominance in buying up the DVD after window for pay-TV – though this could change if competition authorities force the broadcaster to loosen its grip.

LoveFilm says it has good content, a great interface and the back-up of a greater range in packaged media if needed: “We’ve got to believe that is the way forward.”

LoveFilm is eyeing expansion as US rival Netflix also weighs international ambitions, possibly including the UK but with Spain at the top of the list.

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