HMV makes first move into online movie rental

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The troubled entertainment retailer HMV is taking on its established rival LoveFilm and NetFlix, which will debut in the UK next year, by launching an online film rental service.

HMV has teamed up with FilmFlex Movies, the biggest supplier of video-on-demand rental services outside of the US, and started selling its movie on-demand service from yesterday.

Mark Hodgkinson, HMV's marketing and e-commerce director, said, "the time is right to include a digital service into our own offer." HMVondemand will initially be targeted at the two million members of its loyalty card scheme, but the company will start to market it more extensively after Christmas.