In a strategic move to refocus on its core objectives, ITV has successfully sold its 50 per cent stake in BritBox International to BBC Studios for a staggering £225mn. The subscription streaming service, known for broadcasting popular shows such as Death in Paradise and Vera in the US, has become a valuable asset in the competitive streaming market. The deal, finalized ahead of ITV’s upcoming full-year results, reflects the broadcaster’s commitment to adapting to the evolving media landscape.
Facing significant pressure on its balance sheet due to a sharp decline in advertising revenues on traditional TV channels, ITV is reshaping its revenue streams. The company aims to offset this decline by venturing into advertiser-funded streaming services through smart TVs and online platforms. Additionally, ITV is concentrating on expanding its global studios division, seeking new opportunities in the ever-expanding world of content creation.
BBC Studios’ Ambitious Expansion Plans
The acquisition of ITV’s stake in BritBox International marks a significant milestone for BBC Studios, the commercial arm of the UK’s national broadcaster. The £225mn deal positions BBC Studios as the sole owner of the successful streaming service, known for its British content, particularly the “lot of murders in British villages” theme, which has gained popularity, especially in the US.
Tom Fussell, the head of BBC Studios, expressed the importance of the acquisition, labeling it a key move in their strategy. The ownership of BritBox International aligns with BBC Studios’ ambitious goal to double the size of its business. As part of its expansion plan, BBC Studios is not only investing in successful services like BritBox but also considering acquisitions of rival production companies and intellectual properties that can be transformed into engaging TV shows.
Under a new licensing agreement, ITV Studios will continue to receive payment for the use of its programs on BritBox International. Meanwhile, BritBox UK remains unaffected, ensuring the continued availability of BBC content on the platform.
BBC Studios’ Revenue Targets and Ongoing Initiatives
BBC Studios has been actively investing in new productions, with a focus on increasing its revenue streams. In its last financial year, the commercial arm generated an impressive £2.1bn in revenue and paid a dividend of £176mn to the public sector broadcaster. Notably, it invested £177mn in BBC-commissioned content, showcasing its commitment to quality programming.
While Fussell’s target is to achieve revenues of £3.2bn by the end of the charter in 2027, it’s important to note that this falls short of the £3.8bn generated by the license fee in the previous year. However, BBC Studios’ diverse portfolio, including ownership of 55 channels in over 100 countries, positions it as a major player in the global entertainment industry.
