Games Domain International is to provide an own-brand games download service for online retailers using its A World of My Own technology.
Deals are already in place with GAME and Virgin Game Store with GDI providing the proprietary technology while Koch Media will contribute full sales, marketing and back office services.
GDI claims the A World of My Own technology will deliver PC games to users within minutes over a standard broadband connection.
"In Koch Media, we have found a partner with the right relationships with the right retail groups to drive the white label solution rapidly throughout Europe," said Patrick Lorkin, trading director of GDI.
"They have the local expertise and resources needed to manage deployment in all major European markets."
The move now allows Koch Media to make a significant move into the digital distribution of PC games.
"Jointly we lay the foundation for mass market capable games distribution for our internet retailers," added Klemens Kundratitz, MD of Koch.
"This strategic partnership with GDI will help Koch Media to become a digital distributor and deliver a diversified games portfolio to its internet customers with its well known reliability."