BBC executives are in talks with Channel 4 to build a new streaming service to rival Netflix, Disney+, and Prime Video. BBC Director-General Matt Brittin believes the country needs a "sovereign platform” to compete with the colossal US streamers increasingly dominating the space, and confirmed to MPs sitting on the Parliamentary Culture Committee that he "had a discussion with Channel 4" to make it happen.
This isn't the first time discussions have happened between the two broadcasters. Similar efforts to merge the BBC and Channel 4 in some fashion came up in 2007, and then a decade later in 2017. It's unclear whether an agreement between the broadcasters would see the two streamers folded into a single platform, or whether it would be a case of Channel 4 content making its way onto iPlayer. We've already seen similar agreements between ITV and Disney+.
“We have had an approach and have had a discussion with Channel 4,” the 18th BBC Director-General clarified to MPs. “In the world of the ITV-Sky merger, Channel 4 looks very sub-scale.
"All of these mergers are driven by the need to have scale. One opportunity for them would be in partnership with the BBC, having content on iPlayer, but continuing to be ad-funded."
Discussions are still in the early stages, with the BBC executive highlighting an "array of commercial, audience, public service and technical issues". Despite that, any deal between the two broadcasters would be explored “as quickly as we’re able, because I think that’s something that’s going to be important for public service media”.
BBC Director-General Matt Brittin believes that British brands will need to team up in hopes of gaining the scale required to avoid being swept away by Californian counterparts. This consolidation is one of the reasons for the £1.6 billion acquisition of ITV by Sky TV, which includes its ITVX streaming service.
Regulators shuttered efforts by the BBC, ITV, and Channel 4 to develop a single streaming service for the UK as far back as 2007. Dubbed Project Kangaroo, it was designed as a way to bring together thousands of hours from the back catalogue of all three major broadcasters into a single Netflix-like service.
However, UK regulators thought it would muscle out other names in the (then) burgeoning streaming market.
Similar efforts helped to launch BritBox overseas in 2017, bringing together over 8,000 hours of ad-free British television, film, and original content. While the streamer did launch in the UK, ITV decided to pull the plug in a bid to shore up the number of original shows available on ITVX, which had its own paid-for tier.
“This is a moment of real jeopardy, because of the scale and because of the influence of a handful of US and Chinese tech players [which] will dominate the creation and distribution of content," the BBC Director-General cautioned those on the Culture Committee.
It comes as discussions about what to do with the licence fee continue to heat up.
As audiences shift away from traditional terrestrial broadcasts, BBC Director-General Matt Brittin told MPs that No. 10 should consider a so-called "streamer levy" so that "if you watch Netflix, arguably YouTube, TikTok, any other streamer, you would pay." However, he has acknowledged the potential difficulties with enforcement.
As it stands, some 94% of the UK population accesses some services from the BBC. However, only around 80% pay the £180 annual licence fee that supports its efforts.
