The group has joined forces with new media firm Amber Productions to create DVD feature films based on books – the first of which is being produced with author Jackie Collins.
Paris Connections – based on a thriller by Ms Collins – is being shot on location in France and will be available in Tesco stores in May.
Under the joint venture DVDs will be initially available exclusively through Tesco stores, online and through Tesco Direct.
Tesco will focus solely on marketing and sales of the films and will have no say in the content of the screenplays.
Rob Salter, Tesco entertainment director, said: "This ground-breaking relationship with Amber Entertainment is a significant development for Tesco and the first of its kind."
Other blockbuster authors in talks over Tesco releases include Philip Pullman, Judy Blume, Dick and Felix Francis, Karin Slaughter and Jacqueline Wilson.
In November Tesco secured exclusive rights to release an animated Merry Madagascar Christmas film with DreamWorks studio, which sold nearly 124,000 copies.