TalkTalk has ended weeks of speculation by buying the Blinkbox movie streaming service from Tesco in a multi-million pound deal. Tesco's fixed phone and broadband customers will also be making the switch to TalkTalk following the deal.
Vodafone and TalkTalk had both been rumoured to be in advanced talks with the British retailer about the sale of Blinkbox. Both operators wanted to expand their multi-platform offerings but TalkTalk has finally sealed the deal, which is said to be worth an estimated £5 million.
All this means TalkTalk can improve its offerings to the quad-play market, as it now owns mobile, broadband, fixed line, TV and movie streaming services. The firm also wants to use Blinkbox's streaming technology to power other content services in the future.
For example, it's reportedly considering making a TV app similar to Virgin Media's TV Anytime and Sky Go. This would allow TalkTalk customers to access paid-for content on PC, tablets and smartphones at any time suited to them.
Tesco had an estimated 20,000 fixed line customers and 75,000 broadband customers at the time of the deal, so what does the news mean for them? According to TalkTalk, those customers will be transferred to the network in the "coming months". However, the deal will not affect Tesco Mobile customers.
TalkTalk chief executive, Dido Harding said: "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. The purchase of Tesco's broadband base is another example of TalkTalk leveraging its national network to grow faster."
Are you a Blinkbox user? What do you think about the service going to TalkTalk? Share your thoughts in the comments.
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