The new free on-demand service is currently being trialled as a beta version by Tesco employees.
Tesco is planning to launch a free TV and movie streaming service for its Clubcard customers during 2013.
The new free on-demand service, which is currently being trialled as a beta version by retailer's employees, will allow 15 million Clubcard holders to access TV shows and films online.
The new service will be a joint offering from Tesco Clubcard and movie streaming service, blinkbox, Tesco owns 80% of the moving streaming site.
According to the BBC, a Tesco spokesman said the new service is being trialled with colleagues to get their feedback before rolling it out to the general public.
"We're always looking for new ways to reward our customers' loyalty," the spokesman said.
Tesco's new streaming platform will operate similar to as of Netflix, while promises 'no schedules, no fees and no fuss.'