(53) BBC and ITV in talks to launch a Netflix-style streaming service

Link: http://www.theguardian.com/media/2016/mar/10/bbc-and-itv-in-talks-to-launch-a-netflix-style-streaming-service

 

 

Summary:

 

The BBC is understood to have held talks with rivals including ITV about launching a Netflix-style video streaming service. The service is likely to mostly focus on providing older, archive TV content, not the first-run of shows, although it is understood there would be a certain amount of original commissions. Older content can be accessed on a variety of services including pay-TV service UKTV, in digital format through the recently launched online BBC Store, DVDs, as well as Netflix, which has shows such as Top Gear. The corporation and ITV, which also has a 30-day digital TV service and huge scope to exploit an extensive programme archive, have noted the success of services such as Netflix in extending the commercial life of such programming content. Adam Crozier, the ITV chief executive, has targeted digital content exploitation as a key growth driver to continue to reduce the broadcaster’s historical reliance on traditional TV advertising revenue.

Key data/statistical information:

• While Britons pay £145.50 per year for free access to BBC content, including on the BBC iPlayer, content moves off the service after 30 days.
• Netflix has more than 75 million subscribers globally. Since launching in the UK in 2012, it has attracted more than 5 million users paying £5.99 a month.
• If the service does get off the ground, it could open up a crucial way of further monetising BBC content, an important strategy as the corporation looks to find £800m in annual savings.
• The broadcaster has invested heavily in building its production arm, ITV Studios, which saw revenues grow a third to £1.2bn and profits up 27% to £206m.

What's my view?

It seems that TV broadcasters are now trying to adapt to the changes that new and digital media has caused. Since people are now more inclined to watch their favourite shows on-line or on streaming services such as Netflix, BBC and ITV seem to be adapting to their audiences likings so as to keep up-to-date on what the people want. By doing this, they are keeping their platform relevant to this new and upcoming era but also help maintain the business. From a pluralist viewpoint, it can be said that this shows that the audience has the power to make changes to the way things work in society. New and digital media has provided the audience with the power and is slowly decreasing the amount of power that the elite people use to have years ago.