Tesco's Clubcard TV has reeled in a number of big production companies from film and TV. The British chain of department stores offers its internet video channel for free to its sixteen million loyalty card holders and keeps on investing in its content.
Warner Bros., Endemol, BBC…
Mid February it became clear that Tesco's new loyalty programme, Clubcard TV, will offer holders of a loyalty card the possibility to watch films and TV shows for free. For now this is only possible on a pc, but in the future it will be extended to tablets, smartphones, smart-TV’s, blu-ray players and even game consoles.
In the meantime the service is almost a month old and it would appear that Tesco is going all out. The Tesco subsidiary Blinkbox has made deals with Warner Bros., Endemol and Aardman Animations (Wallace and Gromit), bringing in over 500 films and 1700 shows. There is also an agreement with BBC Worldwide that will offer cookery shows, comedy and drama.
Well targeted commercials
Clubcard TV offers all these programs for fee to loyalty card holders of Tesco. The company wants to fund the project through well targeted commercials, which should lead to higher sales in the department stores.
Michael Comisch, CEO of Tesco Digital Entertainment, said the following at the launch of Clubcard TV: "The reason we can offer great programming for free is because customers will see relevant advertising before and during the movie or TV show they are watching. We'll use Clubcard data to tell us what might be relevant for our customers and therefore help us deliver a more personalised service."
One of the first advertisers on Clubcard TV is Kellogg’s, whose ad is shown before and during cartoons and movies for children. Colgate and Danone also were early investors.
The principle also works the other way around: "Customers will have an opportunity to shape Clubcard TV by providing feedback both on content and additional features they would like to see added", says Comisch. This will definitely mean a massive amount of useful data for Tesco from its sixteen million cardholder.