UK retailer Tesco has bought an 80% stake in TV and movie-streaming site Blinkbox.
With the deal, Tesco is expected to compete with Lovefilm and British Sky Broadcasting in the growing internet video market.
Michael Comish and Adrian Letts founded Blinkbox in 2006. Today, more than two million people visit Blinkbox every month to access a library of 9,000 movies and TV shows, some video for freeand some on a pay-per-view basis.
Tesco purchased its controlling stake in Blinkbox from Eden Ventures and Nordic Venture Partners. Terms were not disclosed.
Tesco UK chief executive Richard Brasher said the acquisition of Blinkbox, together with a range of other services currently in development, can allow linking physical purchase of a product to the building of digital collections in a new and seamless way.
Brasher said, "We want to allow them to decide how they access entertainment content and on which devices, whether it’s on PC, TV or tablet.
"Working with the Blinkbox team and our content partners, we will bring these compelling propositions to life for our customers."
Blinkbox chief executive Michael Comish said Blinkbox will remain a separate unit and retaining its brand.
"It’s a hugely exciting time," said Comish.
"This partnership represents another step forward, bringing the leading movie streaming service together with the UK’s biggest retailer."
"We now have access to people who have a propensity to buy and are migrating from physical to digital. They have massive customer reach."
