Since Netflix is inevitably becoming popular, increasingly luring young content consumers, the British Broadcasting Corporation’s (BBC) traditional ascendancy in the British radio and TV scenes is, apparently, challenged.
Thus, it has to institute reforms. The negotiation between the BBC and US media firm, Discovery Incorporated, is underway to address the matter.
A multi-channel streaming service is said to be brewing as the two companies are finalizing their talks with each other.
Countering the dominance of American streaming giants like Amazon and Netflix are reportedly eyed by the conferences.
Their meeting is centered on splitting UKTV, which they are both co-owners. They are seen to end up closing a £1 billion ($1.3 billion) deal that would possibly divide the channels of UKTV between them.
The BBC Studios, which is the commercial branch of the BBC, and Discovery, the owner of Eurosport, have “all but agreed” on an arrangement to split the British multi-channel broadcaster.
Founded in 1992, UKTV is in control of channels like Dave, Drama, and Gold. In addition, it has a combination of 10 pay-TV and free-to-air channels.
At this point, UKTV already remunerates the BBC yearly with £54 million ($71 million) to air replays of BBC programs like “Dad’s Army” and “Top Gear.”
Although no further information has been disclosed yet regarding how the UKTV will be divided, the new agreement between the BBC and Discovery will entail their shared asset’s splitting including its channels.
The BBC desired to completely manage the £90-million ($118.3 million) lucrative UKTV after seeing its business partner’s takeover of Scripps Networks Interactive in March.
In addition, it held meetings with other British terrestrial broadcasters like Channel 4 and ITV since it does not possess the financial flexibility to perform the acquisition on its own.
However, a settlement was not reached before the 90-day window ended, and BBC was not able to tender an offer.
A board meeting by the BBC officials later this month is reckoned as to when the agenda of building a new streaming service capable of challenging Netflix will be finally approved.