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Tesco launches Clubcard TV – will you be watching? February 12, 2013

Posted by Mark Hillary in Current Affairs, Internet, IT Services.
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News has emerged that Tesco is trialling their own TV service on employees, with a view to rolling out a national ‘Clubcard TV’ service later in 2013.

There is not much information yet on the service, but it is clear that they intend it to be a free on-demand TV and movie service limited to Clubcard holders – as a way of rewarding their loyalty to Tesco. With over 15 million Clubcards, Tesco has an enormous customer community so this is an interesting idea.

Of course any on-demand TV service will live or die on the content provided so Tesco is likely to be working hard at present to ensure there is going to be an interesting choice on the service, but it is unlikely that they can offer new shows or movies that are not already available elsewhere.

So what is the point of a service like this? It may just be a reward, a free service that is useful, but not essential, and limited to Clubcard holders. But it could be that Tesco and other big brands have identified a new area of the media where they can step in.

Think of how commercial TV and radio works at present. Shows interspersed by adverts that people no longer want to see or hear. With on-demand services the traditional broadcast model becomes irrelevant and it is increasingly difficult to interrupt content with adverts. However, if your brand is providing the vehicle that allows you to access the movies or shows in the first place then there are many opportunities to promote your brand without needing to place ads.

Media is changing fast – why shouldn’t a supermarket chain create a media empire? Stranger things have happened in business – Nokia used to make rubber boots before phones. Clubcard TV is certainly worth watching out for later this year.

Tesco Value

 

Photo by Chez Eskay licensed under Creative Commons

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