Tesco Snaps up Majority Stake in Blinkbox Video on Demand Service

UK supermarket juggernaut Tesco is getting into the movie business having purchased a large chunk of video on demand outfit Blinkbox.

Tesco said the acquisition of 80 per cent of the internet movie portal "positions Tesco for the next stage in the internet-driven revolution in home entertainment".

Tesco top man Richard Brasher said, "Whether customers want to own the DVD, download a digital movie, stream a rental or all three, Tesco is committed to giving customers choice. We want to allow them to decide how they access entertainment content and on which devices, whether it’s on PC, TV or tablet. The acquisition of Blinkbox, together with a range of other services currently in development, means we can link physical purchase of a product to the building of digital collections in a new and seamless way. Working with the Blinkbox team and our content partners, we will bring these compelling propositions to life for our customers."

Reading between the lines, it looks like Tesco is planning to launch a major exercise in format shifting which would allow punters who have purchased a DVD to watch its content on a wide range of devices from anywhere in the world.

Blinkbox currently streams over 9,000 titles from the latest Hollywood blockbusters for around three quid to some pretty awful bargain bin nonsense for 99p or even free in a few cases.