BBC, ITV and C4 in talks for unified streaming service
The BBC, Channel 4 and ITV have entered into early discussions about the possibility of joining forces against rivals Netflix and Amazon, in what experts have branded a positive move for the media industry.
Should the project go ahead, it would see the broadcasters combine their three separate on-demand and catch-up platforms – BBC iPlayer, ITV Hub and All 4 – into one unified online streaming service.
One source close to the talks told The Guardian that the broadcasters see this as a defensive act for the UK creative industries – although NBC Universal, the American television company, has also been included in talks.
Pauline Robson, managing partner, MediaCom, says that the news “won’t shock many”, as streaming services like Amazon, Netflix and NowTV continue to grow rapidly.
“Consumers are increasingly watching on-demand – our own research shows young people watch on-demand video most often, more than live TV. And with the impending launch of 5G, easier streaming access on smart TVs and a recent explosion in TV series culture, the timing could not be better.”
Netflix currently has 8.2m subscribers in the UK, whilst Amazon Prime Video is streamed in 4.3m British households according to figures from the TV ratings body BARB. [advert position=”left”]
“I wouldn’t expect a new service like this to spell an end to their growth – competition drives innovation and quality and the likes of Sky and Netflix aren’t short of either,” Robson continues.
“However, with Netflix’s focus on unique content and Amazon’s next-day delivery service tied in to their Prime Video offering, the British broadcasters will have to offer something very unique to fight alongside these behemoths.”
The proposal looks to be a revival of Project Kangaroo, a proposed online video collaboration between BBC, ITV and Channel 4 that was blocked in 2009 by the Competition Commission. The media landscape has evolved significantly since then and, with Netflix and Amazon creating unprecedented competition, the broadcasters appear to see fit to brush off the dust and reinitiate the project.
This week’s news also echoes similar calls to unify the sales operations of UK broadcasters, with remarks made earlier this year that broadcasters need to simplify their structures and become more like the platforms they’re competing against if they are to secure future ad money.
Experts at the Connected TV World Summit in March said that media agencies – tasked with planning and buying the advertising – are keen for “the simplicity” of a single buying point.
One example of how broadcasters across Europe are already beginning to think along those lines is the launch of the European Broadcaster Exchange (EBX).
EBX will allow advertisers to book pan-European campaigns across Channel 4’s on-demand service in the UK, and the equivalent services offered by Germany’s ProSiebenSat.1, France’s TF1 and Italy and Spain’s Mediaset.
Although it is early days, broadcasters see big potential in EBX, which consolidates their respective tech, giving them the scale they need to deliver digital advertising with a single buying point.
Crucially, it also gives advertisers access to TV’s premium VOD content and comes with brand safety built in due to the high standards broadcasters must operate to.