- ITV intends to make use of proceeds from the transaction to finance a share buyback
- BritBox was first launched seven years in the past amid a growth in streaming providers
ITV has offered its holding in BritBox International with a purpose to consider increasing its streaming service and international studios operations.
The broadcasting large has offloaded its 50 per cent stake within the digital subscription platform, which has round 3.75 million subscribers, to its three way partnership associate BBC Studios for £255million.
It intends to make use of the estimated £235million in internet proceeds from the transaction to finance a share buyback, which it plans to start after publishing its annual outcomes on 7 March.
Sale: ITV has offloaded its 50% stake in BritBox International, which has round 3.75 million subscribers, to its three way partnership associate BBC Studios for £255million
ITV stated the deal mirrored the technique to give attention to ‘supercharging’ video-on-demand service ITVX and rising its tv manufacturing arm ITV Studios.
The London-listed group will nonetheless obtain a income stream ‘just like present ranges’ from BritBox for the usage of its programmes as a part of new licensing preparations.
Tom Fussell, chief government of BBC Studios, stated the ‘vital acquisition…suits with our acknowledged ambition to double the dimensions of our enterprise.
‘BritBox International has British content material at its coronary heart, and it generates and satisfies demand for British reveals exterior the UK. We will proceed to make important investments sooner or later to ship long-term worth to the BBC.’
BritBox was first launched seven years in the past within the United States amid the surging recognition of streaming providers, together with Netflix and Amazon Prime.
Later on, the platform was broadened to Canada, Australia, South Africa, and a number of Nordic international locations, whereas a individually managed UK streaming service got here on-line in November 2019.
Subscribers get entry to previous British movies and tv sequence, in addition to unique content material, resembling espionage drama A Spy Among Friends, Irvine Welsh’s Crime and the revival of satirical puppet present Spitting Image.
Subscriber numbers swelled throughout 2020 and 2021 as Covid-related curbs on socialising led to folks spending extra time at residence.
But BritBox confronted huge competitors to draw viewers in a streaming market saturated with bigger-budget rivals like Hulu, Disney+ and Peacock.
Last month, ITV confirmed it will shut BritBox UK’s standalone service on the finish of April, with all content material and clients transferring to ITVX.
‘BritBox International was at all times the runt of the litter when it got here to streaming providers, with a major give attention to traditional British TV productions,’ stated Russ Mould, funding director at AJ Bell.
He added: ‘While there’s an viewers for this kind of content material, it’s a lot smaller in comparison with the mainstream platforms.’
ITV shares skyrocketed 15 per cent to 63.5p on Friday morning following the sale’s announcement, making them the FTSE 250 Index’s largest riser.