Dixons has signed a deal with Sony to allow shoppers to buy or rent its titles on the day of their physical release as competition in the video streaming market heats up.

Knowhow Movies, the film and TV service Dixons launched last year, will be able to offer films including the latest instalments in the Spiderman and Men in Black series on the same day that they are released on DVD and Blu-ray.

This deal is the latest in a series signed by Knowhow Movies in the last year including similar partnerships with Warner Bros, Disney, Momentum, Lionsgate, NBC Universal, 20th Century Fox and BBC.

The content will be available to view on more than 180 different devices with prices starting at 99p.

Knowhow development director Niall O’Keeffe said: “This enables our customers to watch the latest blockbusters anytime, on a range of devices from tablets to Smart TVs without subscription.”

The move comes as Tesco has stepped up the marketing of its own streaming service, Blinkbox, with a promotion allowing customers to watch the pilot episode of any series. It is also advertising its Big Night In deal, which includes a Blinkbox rental alongside confectionary, crisps and soft drinks.

Sainsbury’s has also been building its presence in the digital entertainment market and last year acquired HMV’s stake in e-book specialist Anobii to add to its Global Media Vault digital entertainment business bought in 2011.