Supermarket chain Tesco has launched Clubcard TV – its first venture into the world of digital entertainment. Powered by blinkbox, a streaming service for which Tesco owns the majority share, the video on demand platform has been beta tested by the quarter of a million staff members employed by Tesco and has now been launched to the general public.
In a bid to rival online movie streaming sites like Netflix and LoveFilm, Tesco has made its new offering available to new and existing Clubcard users (which currently number around 16 million) without the need for subscription or pay-per-view fees thanks to it being funded entirely by advertisers. It is currently only available through the Clubcard TV website, but there are plans to make it compatible with tablets, smart TVs and games consoles in due course.
Commenting, Tesco said the service “offers great TV and movies plus the opportunity of collecting Clubcard points via various mechanics,” adding that advertisers also have “the ability to target users based on their Clubcard purchasing activity, both in store and online.” Companies which have already signed up to advertise using the platform include Kellogg’s, J&J, Colgate and Danone, and Tesco is asking customers to provide feedback on the content and features they would like added.
“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,” says Michael Comish, CEO of Tesco Digital Entertainment and co-founder of blinkbox. “We’ll use Clubcard data to tell us what might be relevant for our customers and therefore help us deliver a more personalised service.”
The system has launched with a limited amount of content such as The Assassination of Jesse James by the Coward Robert Ford, The Shawshank Redemption, The Only Way is Essex and The Real Hustle but Tesco insist that content will be regularly updated.
MEC Opinion: Tesco launching its own VOD system is an interesting development in this sector and it will be intriguing to see how much impact it has on established heavyweights such as Netflix and LoveFilm. Clearly Tesco has decided that the consumption of TV and films is taking a different direction and are aiming to get ahead of the game rather than standby and watch as DVD sales dwindle.
Clubcard TV certainly offers an interesting option for advertisers as it promises targeted audiences by using existing Clubcard data. Using data to identify what has been previously purchased and when, will allow Tesco to use relevant adverts and it offers the most appropriate time to target customers, for example times when they are most likely to indulge.
Plenty of people are not worried about this access to personal data and are happy to have relevant deals aimed at them but this use of data does not appeal to everyone and some people may feel uncomfortable with a large corporation knowing their business.