Tesco buys video streaming service Blinkbox-- marking the entry of a new player in the Video on Demand (VOD) and OTT video markets.

The retailer says it plans to give customers choice, whether they want to own a DVD, download a digital movie or stream a rental.

Blinkbox's services allow users to stream both movies and TV series (paid-for-feature titles and free ad-supported content) to their PCs and other internet-connected devices, including PS3 consoles and tablets. Its catalogue carries over 9000 titles, while its userbase totals around 2m users.

Following its Q4 2010 earnings call (which show strong showing for its online operations) Tesco shows it wants to expand as a multichannel retailer-- and entering into the fray against the UK's pay-TV services (BSkyB and Virgin Media) and Amazon's LoveFilm.

Go Tesco Prepares for the Next Generation of Home Entertainment with Majority Stake in Blinkbox