After weeks of speculation, TalkTalk has acquired the Blinkbox movie streaming service from Tesco for an alleged £5 million. Tesco broadband and fixed telephone customers will also be switching over to the TalkTalk service.
The statement from TalkTalk doesn't reveal the amount paid, but speculation elsewhere puts it in the lower millions. The debt accrued by Blinkbox whilst at Tesco is not being transferred to TalkTalk.
Vodafone was also previously rumoured to be in talks with Tesco as it looked to expand its multi-platform offering, but TalkTalk itself is now able to do that, now owning fixed line, mobile, broadband, TV (in the shape of YouView) and movie streaming services.
The new owner has revealed that it will be looking to exploit Blinkbox's streaming technology for other services too. It is considering a TV app for customers that will provide access to paid-for content across a range of devices, possibly like Sky Go or Virgin Media's TV Anytime.
"We are excited about the opportunity that Blinkbox’s platform and technology expertise bring, and which will significantly accelerate the development of our TV platform," said Dido Harding, chief executive of TalkTalk.
"The purchase of Tesco’s broadband base is another example of TalkTalk leveraging its national network to grow faster."