The Michael Powell Award is given to the best British feature film of the year. It is named after the filmmaker, who directed the classic 'The Red Shoes' and died in 1990.
Lovefilm's chief executive Mark Livingstone said: "Everyone working for has a genuine passion for film, and we are proud to be sponsoring such a prestigious award."
Earlier this month, the online DVD rental service unveiled a tie-in with Time Out magazine to sponsor its movie reviews.
Previous winners of the Michael Powell Award include 'Young Adam' in 2003 and Tim Roth's film 'The War Zone' in 1999.
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