Tesco ‘to sell or close’ video streaming service Blinkbox

Tesco is planning to sell-off its loss-making video streaming platform Blinkbox – and if a buyer can’t be found, the service will be shut down.

According to a report in The Times, Tesco’s news boss, Dave Lewis, is understood to have decided the platform is a “distraction” to the wider business.

Tesco, under the direction of Lewis’ predecessor Philip Clarke, acquired an 80% stake in Blinkbox in 2011 for an undisclosed sum. It was hoped the streaming service would bolster sales of the retailer’s digital entertainment offering.

The deal saw Blinkbox founder Michael Cornish promoted to group digital director of Tesco in 2013, where he is expected to remain at the company whatever the outcome.

Blinkbox, which has around one million users each month, has deals with over 50 of the world’s leading content producers including HBO, Disney, Warner Bros., Universal Studios and 21st Century Fox.

However, it has faced tough competition from the likes of Netflix, which has shown phenomenal growth. With almost 54 million subscribers across the globe, international streaming has seen a tenfold increase since 2011.

Tesco had made attempts to increase the use of Blinkbox by bundling it with its own-brand Hudl tablet last year, but has underperformed. The company is expected to launch the Hudl 2 this week, but it remains to be seen if Blinkbox will be included.