BBC set to launch Britflix rival to Netflix after John Whittingdale approves subscription streaming 

The broadcaster is understood to be working on a new online service that would serve as a British rival to Netflix, the American web giant
The broadcaster is understood to be working on a new online service that would serve as a British rival to Netflix, the American web giant Credit: Elise Amendola/AP

The BBC is to push ahead with plans to launch a British rival to Netflix, after getting the go-ahead from the government to develop a new subscription streaming service.

The project - which is understood to have the working title, Britflix - is believed to be a collaboration between the corporation and ITV, its main commercial rival, and is still in the early stages of development.

A White Paper on the future of the BBC, unveiled on Thursday, called on the corporation to develop “some form of additional subscription services” over the coming years, which ministers suggested could pave the way to the corporation adopting a mixed model of both licence fee funding, as well as additional, paid-for services.

The paragraphs were widely interpreted as an assault on the corporation’s traditional funding model, with some suggesting that it marked the “beginning of the end” for the licence fee.

However, John Whittingdale, the culture secretary, as well as senior BBC sources, said it was the corporation that had requested new powers to levy subscriptions.

It is understood that the broadcaster is working on a new online service, delivered over the iPlayer, which would serve as a British rival to Netflix and Amazon, the American web giants.

A source with knowledge of the project said that ITV was involved, along with a number of production companies, including NBC Universal, the parent company of Downton Abbey maker Carnival Films.

The putative service would carry British broadcasters’ archive content, as well as commissioning its own original series much like Netflix, which has developed hit shows such as Narcos and Making a Murderer.

Culture secretary John Whittingdale in Westminster on the day he unveiled the BBC White Paper
Culture secretary John Whittingdale in Westminster on the day he unveiled the BBC White Paper Credit: Eddie Mulholland for The Telegraph

Mr Whittingdale told The Telegraph that he was supportive of the corporation’s plans.

He said: “We’re moving into a different world where more and more content is going to be made available on demand. Collaboration with other broadcasters and other production companies we think is important.

"If they want to explore that kind of thing, we’d encourage them. There may come a moment in the future where all television is delivered online, and if you do that it becomes a more realistic practical possibility if you wanted to move towards an element of voluntary subscription, which is why the BBC, who see the way the world is changing, have said, ‘Yeah we will just see for the online provision, whether or not there might be a case for additional new content being delivered on a subscription service, via the iPlayer’.

“That’s something they’re going to look at. It was their suggestion, and they have said they will draw up the scope of the trial.”

The BBC has been quick to reassure viewers that any new service would not involve any of the corporation’s existing shows disappearing behind a paywall.

One source at the broadcaster said: “It’s not like you’d have to pay for a second series of Night Manager.”

A similar collaboration between British broadcasters, known as Project Kangaroo, was blocked by competition regulators in 2009, over fears that it would stifle competition.

However, many in the industry now see that decision as shortsighted, as it has allowed American giants to establish a powerful foothold in the online subscription television market.

The White Paper said: “The government welcomes the BBC’s commitment to develop and test some form of additional subscription services during the first part of the next Charter period, and to consider whether elements of subscription could provide a more sustainable funding model in the longer term.

“It will be for the BBC to set the scope of these plans (subject to appropriate regulatory scrutiny) and the BBC board will need to ensure progress and success are appropriately reviewed.

"The government is clear that this would be for additional services only. Licence fee payers will not be asked to pay for ‘top-up’ services for anything they currently get.”

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