Grocers’ digital dreams: Sainsbury’s launching VOD, Tesco ending MP3

Interesting how leading UK Supermarkets Tesco and Sainsbury’s are leveraging their online traffic to get into Video On Demand and go head to head with Netflix and the like.

Gigaom

The UK’s number-three supermarket is preparing to turn itself in to an online movie and TV rental service, as it vies with with leader Tesco on digital devices, just as they have in the aisles.

Sainsbury’s is contracting video tech firm Rovi to power video on demand and for download in a service due to launch later this year under its new Sainsbury’s Entertainment brand.

Rovi promised paidContent “a transactional-based model that supports the sale and rental of premium titles versus a subscription-based service”. The service will launch initially on web and Sainsbury’s says it wants to take it later to internet TVs, Blu-ray disc players, smartphones and game consoles.

Sainsbury’s movie and TV offering will go head-to-head with Blinkbox, which Tesco acquired a majority of last year. Expect to see each supermarket competing with Netflix, Amazon’s Lovefilm, BSkyB and other dedicated VOD brands on internet TVs next year.

Like Blinkbox, Sainsbury’s…

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