U.K. Retail Giant Tesco Launches Ad-Supported Film, TV Streaming Service

 Warner Bros.

LONDON – Tesco, the world's third largest retailer, is now offering its loyalty card members a movie and TV online streaming service for free named Clubcard TV.

Launched Wednesday, the service has content targeted for children and families, with programming including The Shawshank Redemption, The Wind in the Willows movie starring Matt Lucas and TV show Strawberry Shortcake.

Clubcard TV has inked deals with Warner Bros., Endemol and Aardman to feed the service library titles.

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According to Tesco, it makes the supermarket giant the first retailer in the U.K. to reward its customers with their own online movie and TV service.

Tesco Digital Entertainment CEO Michael Comish said: "The reason we can offer great programming for free is because customers will see relevant advertising before and during the movie or TV show they are watching. We’ll use Clubcard data to tell us what might be relevant for our customers and therefore help us deliver a more personalized service."

Clubcard TV is supported by targeted advertising based on users’ shopping habits. Advertisers onboard for the launch of the service include Kellogg’s, J&J, Colgate and Danone.

The service has been developed by the team behind the Tesco movie and TV streaming service blinkbox.

Customers will shape Clubcard TV by providing feedback both on content and additional features they would like to see added.

Other titles being offered include the Brad Pitt western The Assassination of Jesse James by the Coward Robert Ford (Warner Bros.) and the hit shows The Only Way is Essex (All3media), Doc Martin and The Real Hustle (DRG).

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Warner Bros. International Television Distribution president Jeffrey R. Schlesinger said the retailer has "stepped up and made a financial commitment enabling them to license a selection of films for an exclusive short window sequenced between the traditional free TV windows. We are very pleased to have a new player in the competitive advertiser supported programming space."

There are plans to extend the service to a range of devices including games consoles, tablets, Smart TVs, Blu-ray players and set-top boxes.

Clubcard members access the service by entering their membership number and a few details including date of birth and zip code.

No financial details were disclosed.

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