ITV considers £1bn joint venture with BBC for UKTV

ITV is considering buying half of UKTV in a £1bn joint venture with the BBC, as British television broadcasters continue to build defense strategies against the rapidly growing power of online streaming services.

UKTV, broadcaster of channels Dave and Gold, is currently co-owned by BBC Worldwide and Discovery Inc.

The BBC has the right to buy out its partner by the end of next week and, as reported by the Daily Telegraph, is exploring a deal with ITV in which it would trigger the option and then immediately re-partner with the commercial TV broadcaster.

The news reflects current concerns across the traditional TV industry about the growing strength of online streaming services in the UK. According to TV ratings body BARB, Netflix has 8.2m UK subscribers and Amazon Prime Video is streamed in 4.3m British households.

This month has already seen discussions between ITV, BBC and Channel 4 about a unified streaming service, following calls earlier this year from media agencies and advertisers for broadcasters to simplify their structures and operate with one inventory source.

“I believe TV itself has to become more of a platform… TV companies need to unify what they’re doing. Just one on its own does not have the power to unlock those dollars,” said Lorne Brown, CEO of Operative, at the Connected TV Summit in March.

ITV and BBC have a fortnight to choose whether to seal their partnership.