Tesco has snapped up online movie provider Blinkbox – the day after Philip Clarke vowed to bring innovation back to the supermarket’s UK business.
Blinkbox operates a library of 9,000 movies that users can stream online to watch on home computers, games consoles and internet-enabled TVs. Tesco has bought an 80% stake in the business, which claims to serve two million users a months.
“Whether customers want to own the DVD, download a digital movie, stream a rental or all three, Tesco is committed to giving customers choice,” said UK chief executive Richard Brasher.
“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.”
News of the deal comes after Tesco unveiled its latest full-year results, with fourth-quarter sales in the UK declining. Clarke, who recently took over as chief executive, admitted the business needed its raise its game in areas including non-food and its communication with customers.
Clarke concedes ‘We must do better’ as Tesco falters in fourth quarter (19 April 2011)
Top of the Flops: When entertainment exclusives go bad (29 January 2011)
Trolleywood is a turkey for Tesco (25 October 2010)