Clubcard TV hosts thousands of movies and television shows that can be played over an internet connection.
The service is accessible only to Tesco employees while beta testing concludes, but Clubcard holders will be able to access its library for free in the spring.
The supermarket chain purchased an 80% stake in movie streaming firm Blinkbox in 2011 and launched an initiative that enabled Clubcard customers who purchase DVDs to access the content online via Blinkbox's web-based service.
Tesco is not the first supermarket to enter the video on-demand sector. Sainsbury's announced plans to launch a digital film and TV service in August last year.
Users can take a look at how the service is developing over on its official website.