Retailers Tesco is planning to launch a film downloading service "as soon as possible" to build on the success it has had in the online music sector.
Tesco has captured 10% of the online music market
But the company says the UK's Broadband capacity is not yet capable of handling movie downloads.
Tesco commands a 10% share of internet music sales, and is targeting film as the next place for digital expansion.
Wippit announced plans last month to launch the UK's first site offering films to download and keep.
Tesco said there is no specific timetable for introducing a site for customers to download films, but is monitoring the growth of Broadband and its ability to support the service.
A spokeswoman for the company said that they entered the download business with a view to expanding beyond offering music.
Video games and films have always been part of their plan as the digital market expanded, she added.
Tesco are also keen to expand their online DVD rental service, which was launched in March 2004 and now has 30,000 customers registered with the service.
A possible launch into online film downloads comes after Sony announced it would make 500 films available by next year in a bid to combat online piracy.
A number of US internet sites have offered films for legal downloading, but do not offer the facility to store movies for future viewing.
UK site Wippit announced that it was in talks with distributors to be able to offer big screen downloads for 99p.