Giant UK high street retailer, Tesco, has its sights on the online media market, with its Tesco Digital arm in talks with the BBC, ITV and Fremantle Media to offer TV shows and films through its store.
The company hopes to rival iTunes with its service, which it hopes to launch before Christmas.
Content providers are understood to be interested in the plan, partially because Tesco is such a major UK retailer with a proven ability to sell that it could have a huge impact on the emerging online video market.
The company launched its music and games download service in April with a catalogue of 3 million tracks, sold at 70p each and available in MP3 or WMA formats.
The company’s music sales website now features a tab for TV and film content, but this isn’t yet active, simply warning “coming soon”.