UK supermarket giant Sainsbury’s has bought Global Media Vault (GMV) in a £1 million deal, it was confirmed today.
The white label online digital entertainment business was previously owned by MBL, a UK distributor and wholesaler of home entertainment products, and has been bought by the grocer to help enhance its non-food offering.
GMV was established in January 2009 and has since developed a unique multichannel platform which Sainsbury’s has had first hand experience of, being the provider’s biggest client.
Users of GMV can choose from a digital database of over three million music, film and game assets which can be browsed, purchased and distributed via web, mobile, TV and kiosk applications.
Luke Jensen, Sainsbury’s Group Development Director, said: “Online retailing and the delivery of digital content will play a key role in the future of entertainment so this is an important acquisition for Sainsbury’s.
“Taking full control of Global Media Vault Ltd will enable us to develop our existing Sainsbury’s Entertainment website even further enhancing the functionality and customer experience, meaning customers will soon be able to buy, rent or stream content from Sainsbury’s.”
Sainsbury’s points towards analysis for Verdict Research which estimates the total market worth of the entertainment retail industry as £7.3 billion at present and that the online market for this sector will double between now and 2015.
Tesco, the UK’s largest retailer, has seen slower growth than Sainsbury’s in recent financial periods due to its huge non-food offering, with non-grocery items proving the hardest to shift for supermarkets in this tough consumer market.
However, Sainsbury’s looks to be preparing itself for the post-downturn period when all players will be looking to capitalise on renewed spending.
Jensen added: “Securing this platform for Sainsbury’s Entertainment shows how we are constantly looking to innovate and seize opportunities that will support the future growth of our business.”