Digital music service provider MediaNet Digital has struck a deal to power Tesco's revamped online entertainment business, Tesco Digital.

As reported in April, the British Tesco supermarkets giant had announced grand plans to overhaul its download service and replace it with an operation offering downloadable films, TV programs and games and 3.3 million music tracks, half of which would be in the iPod-compatible MP3 format.

The catalog of audio tracks now stands at 3.7 million, with more than 2.4 million in MP3 format, according to a statement issued today by N.Y.-based MediaNet, formerly known as MusicNet.

Current titles include Coldplay's U.K. No. 1 "Viva La Vida" (Parlophone), at a reduced cost of £6.97 ($13). Downloadable TV and feature films to be added soon, notes MusicNet.

"MediaNet's fully customized service, comprehensive media library as well as their knowledge and experience have helped us to achieve our goals," comments Tesco commercial director Graham Harris in a joint statement.

Alan McGlade, president and CEO of MediaNet Digital, adds, "Our aim is to help Tesco Digital deliver the right mix of content and ease of use for their customer base."

Tesco, which is a member of the Entertainment Retail Association, accounted for 12.7% of U.K. record buyers' albums expenditure in 2006, according to labels body the BPI. ERA's recently-published statistical yearbook does not break out the performance of individual retailers.