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Tesco attempts to tackle Amazon with new online entertainment venture

March 4, 2013

The European retail giant Tesco is gearing up for a head-to-head services battle against Amazon. According to an article on telegraph.co.uk, Tesco is tackling ebooks, music retail and movie rentals and purchases with its expansion into the entertainment space.

Tesco bought stake in the Blinkbox film and TV site in 2011, but has done little with the technology firm in the nearly two years it has owned it — until now. Tesco plans to operate the three Blinkbox retail sites separately from Tesco's main online store, but advertise them heavily in-store.

Gavin Sathianathan, Facebook's head of retail for Europe, the Middle East and Africa, will lead the books operation, Blinkboxbooks, the article reported. Mark Bennett, a former EMI and Warner Music executive who now heads Sainsbury's digital entertainment unit, will head up Blinkboxmusic.

"Tesco is already the third largest retailer in the world, and we will have launched three new digital entertainment businesses by the end of the year, headed by some of Britain's brightest digital minds. This is the beginning of a big journey," said Michael Comish, chief executive and founder of Blinkbox. "I don't think you compete head on against Amazon. I think you compete around Amazon and leverage the strengths you have ... Amazon doesn't have 2,000 stores. Amazon doesn't deliver to you within the hour. There's a lot which Tesco has which customers value."

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