lovefilm have become a bit of a joke to be honest. Their instant streaming service uses silverlight (something even microsoft have given up on), no apps for MS Phone or Android
That said, netflix and hulu (hulu especially) are going the same way
In fact, I actually cancelled my hulu subscription last week
I really hope Microsoft start looking into a video subscription service like they did a couple of years back. They never went through with it due to cost, but they had big ideas. The catalog from MS is immense!