Retail News: Tesco.com cuts DVD rental price

Tesco is launching an assault on its online DVD rivals by offering the cheapest entry-point deal available.

A revised price structure will allow the rental of one DVD at a time for a monthly fee of £7.97 via Tesco.com, undercutting the £7.99 a month charged by Amazon.

The offer is more limited than its existing £13.97 offer for three DVDs at once, but Tesco.com director of non-food John Paul O'Reilly said it aimed to encourage trial.

The service, which is handled through Video Island, has 10,000 subscribers. It has a 10% market share, behind Blockbuster and ScreenSelect, according to O'Reilly.

Tesco is trialling TV, radio and press ads in the Anglia region to promote the offering, with the potential for a national roll-out in 2005.