TESCO’s acquisition of Blinkbox could see it go head-to-head with Amazon in a clash of the retail titans.
Amazon recently bought movie rental site LoveFilm and is keen to develop its online movie streaming operations.
It is understood Amazon plans to integrate LoveFilm into its Amazon Prime subscription service, giving its premium customers access to the movie database with no extra charge.
One industry watcher told City A.M. this could give a Tesco-backed Blinkbox an advantage in the cut-throat industry.
The sale of movie rights is notoriously expensive for subscription services, especially with major player Sky owning new-release rights in the UK. However, single-watch pay-per-view services such as those offered by Blinkbox attract lower rights charges. Tesco looks intent on conquering every sector.
This looks like a smart way into movies.