Tesco looks like it is close to dropping the entertainment streaming service Blinkbox, after the brand continued to make significant losses.
Last year, Blinkbox’s video-on-demand platform alongside its Books and Music services lost a combined total of around £25 million.
Earlier this month, it was confirmed that Tesco had sold the movie business to TalkTalk, but the fate of Blinkbox Music and Books was still undecided.
Now the company has announced that music streaming firm Guvera has acquired Blinkbox Music, which currently serves around 2.5 million registered users. Guvera is an Australian company that already has licensing deals in place with Universal Music Group, Warner and Sony and will look to use the Blinkbox acquisition to increase its market share in Europe.
Michael de Vere, Guvera’s global chief operating officer, explained that the purchase would provide a huge boost to a platform that is already available in 20 markets worldwide.
“The acquisition of blinkbox Music is an important new chapter in the Guvera story, adding significant firepower to our product – both in terms of technical expertise and an established and loyal audience in the UK.”
Meanwhile, Book Seller reports that Tesco has been unable to find a buyer for Blinkbox Books after talks with Waterstones broke down. As such, the service is set to “close by the end of February,” according to a company spokesperson.
Tesco bought an 80 per cent stake in the Blinkbox brand back in 2011, as the company looked to enter the digital content market. However, despite a growing userbase, the retail giant was not able to turn a profit on the business and now looks to be cutting its losses.
Despite the failure of Blinkbox, Tesco's other technological venture, its budget range of Hudl tablets, is proving successful with a second edition of the device released late last year.