The supermarket has teamed up with new media firm Amber Productions in a bid to expand its influence in the entertainment sector.
Under the deal, Tesco will focus on the marketing and sales of the DVDs but will have no say in the films content or artistic direction.
The films will be available exclusively at Tesco stores, online and via Tesco Direct.
The first DVD film the joint venture will produce will be “Paris Connections” a thriller based on a book by Jackie Collins and it will be available in May.
Rob Salter, Tesco entertainment director, says: “This ground-breaking relationship with Amber Entertainment is a significant development for Tesco and the first of its kind for the industry. Through this partnership we will be able to offer our customers an exclusive window to own a first-run film from a range of well-known authors.”
The supermarket is currently in talks with authors including Philip Pullman, Judy Blume and Jacqueline Wilson.