Confirming what's been expected for months, Tesco has offloaded its struggling streaming service Blinkbox Movies, with quad-play provider TalkTalk picking up the film package.
Blinkbox integration with TalkTalk's existing TV business (serving 1.2 million customers) will "begin immediately", with TalkTalk also purchasing Tesco's broadband and voice services, adding 75,000 broadband and 20,000 voice customers in the process.
"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, TalkTalk's Chief Executive.
"The purchase of Tesco’s broadband base is another example of TalkTalk leveraging its national network to grow faster."
Though the exact cost of the services has not yet been revealed, TalkTalk states that the assets "have been acquired free of debt and as a single transaction for cash."
For Tesco, the deal allows it to reduce its capital expenditure by £1 billion following a rocky year, while TalkTalk firms its position against the growing threat of BT/ EE's quad-play TV empire. [TalkTalk]