Tesco has launched Clubcard TV in a move that will see it reward customer loyalty with online films and television shows.

Tesco [IDRX RTSC] promises that the service, which features titles including the Assassination of Jesse James by the Coward Robert Ford and The Shawshank Redemption, will be free of charges, contracts or subscriptions, since it is funded through advertising tailored to the interests of individual viewers through data from the Clubcard scheme. Advertisers signed up for the launch include Kellogg’s, J&J, Colgate and Danone.

Michael Comish, chief executive of Tesco Digital Entertainment, said: “Clubcard TV offers a whole world of free entertainment for all the family. It makes digital entertainment easy and accessible for our customers.”

“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.”

Customers can also have an input into Clubcard TV through their feedback. Ultimately there are plans to extend the service to a range of devices from games consoles to tablets, Smart TVs and Blu-Ray players. New movies and TV shows will also be added as the service evolves.

Clubcard TV has been developed by the team behind the Tesco movie and TV service blinkbox. The 16m Clubcard members can access it by entering their 16-digit Clubcard numbers, date of birth and postcode.

Tesco has been developing its digital capabilities in recent years, with acquisitions including blinkbox in 2011 and digital music platform and digital book business Mobcast in 2012.

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