Lovefilm's film streaming business has overtaken its physical DVD, Blu-ray and game rentals for the first time ever.

Over 20 per cent more films and television programmes were streamed in February 2012 than DVDs, Blu-ray and games were rented by post, which equates to a 400 per cent increase in streaming compared to the same time last year.

But those rushing to add this to the list of reasons why physical media is dead should hang fire: Lovefilm's physical rentals have increased over 25 per cent since February 2011 as well.

Champagne corks popping

Basically, it's all going pretty well over at Lovefilm HQ. Jim Buckle, Lovefilm's MD, commented, "In less than three years, streaming through Lovefilm Instant has become more popular than renting DVDs.

"Our members crave instant on-demand access. With more world-class digital content being added to Lovefilm Instant and a growing number of Internet-connected devices delivering it to members' living rooms we expect this trend to continue."

Owned by Amazon, Lovefilm added its two millionth member in January 2012 even as it faced tough new competition from new kid on the block Netflix.

But if you're umming and ahhing over which of the movie streaming services would suit you best, you'll want to take a good hard look at our handy comparison which pits Lovefilm vs Netflix in a fight to the death. Well, not quite the death. But near enough.