Tesco has acquired ebook platform provider Mobcast for £4.5m as the grocers’ march on the digital entertainment market continues.
Tesco’s purchase of Mobcast – which was founded in 2007 by chief executive Tony Lynch and bestselling author Andy McNab – is the latest in a string of acquisitions in the sector.
The grocer purchased movie and TV streaming service Blinkbox in 2011 and personalised internet radio service We7 in June 2012.
Sainsbury’s has also made advances in the sector. The grocer last week signed a deal with Rovi Corporation to provide a new digital video service for its microsite Sainsbury’s Entertainment.
In June, Sainsbury’s purchased HMV’s stake in e-book business Anobii for £1.
The retailer launched its online offer Sainsbury’s Entertainment in November 2010. This was followed by the acquisition of online entertainment company Global Media Vault in October 2011 and the launch of its music download service earlier this year.
Tesco Digital Entertainment chief executive Michael Comish said: “We want our customers to have the widest choice in digital entertainment. We are already one of the UK’s largest booksellers and Mobcast will help us offer even more choice for the large and growing number of customers who want to buy and enjoy books on their digital devices whenever and wherever they want.”
McNab said: “As an author I always thought the ability to carry your library around and read on all your personal devices would be a huge benefit to all. We have developed a product that makes this possible, and being acquired by Tesco ensures that this original vision will be available to as many people as possible.”