Tesco has struck an exclusive partnership with film studio DreamWorks to offer DVDs and merchandise in its stores.

The first film, called Merry Madagascar, is the studio’s Christmas Madagascar special. It will be available to buy in Tesco shops for £5 from November 23.

Tesco is also developing the license with merchandise such as toys, gift wrap and confectionary.

Tesco entertainment director Rob Salter said: “This groundbreaking relationship with DreamWorks is a significant development for Tesco and the first of its kind for the industry. It demonstrates our commitment to bring customers the very best in entertainment.

“It is just the start of an exciting new era in home entertainment for us and will see further special DreamWorks films released exclusively during next year.”

Next month, Tesco will team up with the film Me and Orson Welles starring Zac Efron. The DVD release will be sold exclusively in Tesco stores and will be promoted when the film in shown in cinemas.

Salter added: “We have just launched our new online one-stop-shop for entertainment allowing customers to buy DVDs, games and CDs, download music and film and keep up with all the latest entertainment news. The online store has a vast back catalogue with 1000s of physical entertainment products and over 5 million downloads. For the first time this site puts all the elements of our offer under one roof and we are excited about the potential for it to grow in the future.”