BBC Studios recently made a significant move by acquiring ITV’s shareholding in their joint venture streamer, BritBox International. This transaction, valued at a whopping £255M ($321M), marks the largest single deal ever made by the BBC’s commercial arm. ITV confirmed the sale of its 50% shareholding, with the proceeds set to be returned to shareholders through a share buyback scheme following the posting of full-year results on March 7. The BBC also affirmed the deal in a separate statement, indicating that BritBox International will now be integrated into the BBC Studios Global Media & Streaming division.
As a result of the acquisition, BritBox CEO Reemah Sakaan will be exiting the business. However, the BBC has assured that new leadership plans are in place for a smooth transition and will be announced shortly. The deal values BritBox International at over £500M, highlighting its success as a streaming service with nearly four million subscribers across eight territories. BBC Studios CEO, Tom Fussell, expressed the importance of the acquisition, emphasizing the alignment of BritBox International with the BBC’s strategic goals of expanding its business. Fussell also acknowledged Sakaan’s contributions to the growth of BritBox International under her leadership.
Rebecca Glashow, BBC Studios Global Media & Streaming CEO, characterized BritBox International as a profitable and promising business with significant growth opportunities. With the full support of the BBC, Glashow envisions taking the service to new heights for its subscribers. ITV, on the other hand, cited its focus on the growth of its own streamer, ITVX, and its global ITV Studios division as reasons for exiting the BritBox International venture. Moving forward, ITV Studios will continue to receive revenue from BritBox International through extended licensing agreements.
Historical Context and Success of BritBox International
BBC Studios and ITV initially launched BritBox International in 2017 to cater to the demand for British content in North America and other select markets. Over the past four years, the service has experienced remarkable growth, with its subscriber base increasing by over 300% and nearing 3.8 million users. The success of BritBox International can be attributed to its focus on British content and meeting the needs of audiences beyond the UK.
The acquisition of ITV’s shareholding in BritBox International by BBC Studios represents a significant milestone in the evolution of both companies’ streaming services. With a clear strategic focus on growth and delivering value to subscribers, the future of BritBox International looks promising under BBC Studios’ full ownership. The exit of ITV from the venture signals its commitment to nurturing its own streaming platform and production division. Overall, this deal underscores the competitive landscape of the streaming industry and the importance of strategic partnerships in driving success.