ITV pulls the plug on Netflix to launch joint streaming venture
ITV is preparing to remove programmes such as Broadchurch and Victoria from Netflix as it plans to launch a rival subscription streaming service with the BBC and Channel 4.
It currently sells Netflix rights to archive boxsets including Prime Suspect and Marcella, but Dame Carolyn Mccall, ITV’S chief executive, said viewers would soon not “be getting them on Netflix because we have the UK rights”.
She said: “If we are developing subscription we have to develop it effectively.” The withdrawal of ITV shows would happen gradually as contracts for renewal lapsed and echoes similar decisions in the US made by Disney and 21st Century Fox.
Traditional media owners have become increasingly wary of fuelling the growth of Netflix as it started to invest heavily in its own original series.
ITV has been in talks with the BBC, Channel 4 and others about a joint subscription streaming service for over a year. Dame Carolyn said: “Our research indicates there is demand for distinctive, unique British content that consumers are willing to pay for.”
It is envisaged that broadcasters will contribute archive boxsets to a jointly owned venture that would sell subscriptions to viewers under its own brand. The BBC’S involvement has been cited by Virgin Media in its ongoing fees dispute with UKTV, the broadcaster behind the Dave and Gold channels. Virgin argues it could be forced to pay twice for BBC archive programmes, once for traditional linear broadcast and then again for the new subscription service.
Hulu, a comparable streaming collaboration owned by US television networks, also commissions original programming, but Dame Carolyn said it was too early to say whether the British equivalent would make its own shows.
The venture would require an unprecedented degree of cooperation between ITV and the BBC. The BBC’S commercial activities have been traditionally viewed with suspicion by its rivals.
“It’s not entirely dependent on it but we would prefer to have a partner or partners,” she said. ITV discussed the plans as part of a “strategy refresh” – unveiled alongside its half year report. The broadcaster aims to double its revenues from direct relationships with consumers to £100 million within three years, excluding the streaming collaboration. It already offers a paid version of its catch-up service, ITV Hub, that offers viewing without advertising.
Total advertising revenues, including sponsorship, were up 2 per cent over the first half, including a big boost in June from the World Cup and Love Island.
Dame Carolyn said brands had spent heavily around the World Cup but were now trimming spending ahead of the run-up to Christmas.
It is understood ITV is also considering bidding for TV production giant Shine Endemol. The producer of Masterchef is to be auctioned soon by its current owners, 21st Century Fox and Apollo. ITV declined to comment on its interest in a business valued at more than £1.5 billion but highlighted its low debts and strong cash flow.