Tesco's digital streaming service, Blinkbox, could be acquired by Vodafone to accelerate the mobile network's move into broadband and pay-TV markets.

Rumours of a sale or shut-down of Blinkbox first surfaced in October when Dave Lewis, Tesco’s new chief executive, was said to have begun a strategic review of the entertainment business.

The exec has since called Blinkbox "a distraction" - it reported a loss of £18.5m in its most recent accounts.

Vodafone is reportedly the only suitor in the ...