You won’t believe how many millions Tesco lost on Blinkbox

Blinkbox cost Tesco a small fortune

Another big red cross on the list of Tesco’s investments appeared last year when it revealed it was getting rid of multimedia streaming service Blinkbox.

It sold Blinkbox Entertainment, the TV and movie streaming service, to TalkTalk for £25m, sold Blinkbox Music to Guvera for £5m and plans to close Blinkbox Books.

However, it’s only now we’re realising the extent of Tesco’s losses on the Blinkbox brand.

Accounts filed to Companies House show it lost more than £40m last year on these services.

Losses at Blinkbox Entertainment reached £29.5m, while Blinkbox Music made a £12.5m loss in the year to 28 February 2014, after sales revenues fell by nearly half to £150,000.

Costs and investment however were the reason Tesco lost so much. Blinkbox Entertainment actually nearly doubled its sales from £3.2m to £6.3m – but spent far more on investment and buying rights to the films.

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