BBC Studios recently made a significant move by acquiring ITV’s shareholding in their joint venture streamer, BritBox International. This transaction, valued at £255M ($321M), marks the largest ever single transaction for the BBC’s commercial wing. The sale was confirmed by ITV in a regulatory note, with the proceeds set to be returned to shareholders through a share buyback scheme after the full-year results are posted on March 7. The deal values BritBox International, which boasts nearly four million subscribers in eight territories, at over £500M.
As a result of the acquisition, BritBox CEO Reemah Sakaan will be exiting the business, which will now become a part of the BBC Studios Global Media & Streaming division. The BBC has assured that new leadership plans are in place to ensure a smooth transition and will be announced “imminently.” This acquisition is being hailed as an important move for BBC Studios, as it aligns with their ambition to double the size of their business. BBC Studios CEO Tom Fussell expressed gratitude towards Reemah for her outstanding contribution to BritBox International and emphasized the value that the service brings by satisfying the demand for British shows outside the UK.
Rebecca Glashow, the BBC Studios Global Media & Streaming CEO, believes that BritBox International is a profitable business with tremendous growth potential. With the backing of the BBC, the aim is to take the unique service to even greater heights for its subscribers. Meanwhile, ITV has stated that it is exiting the joint venture to focus on the growth of its own streamer, ITVX, and its global ITV Studios division. The ongoing revenue stream from BritBox International for the use of ITV content under extended licensing agreements will continue to benefit ITV Studios.
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 witnessed significant growth, with its subscriber numbers increasing by over 300% and nearing 3.8 million. The success of BritBox International underlines the popularity of British shows globally and the potential for continued expansion in the streaming market.
Overall, the acquisition of ITV’s shareholding in BritBox International signifies a strategic move by BBC Studios to strengthen its presence in the streaming industry and capitalize on the growing demand for British content worldwide. With a clear focus on enhancing the service and maximizing its potential, both BBC Studios and ITV are poised to pursue their respective growth strategies in the evolving digital entertainment landscape.