ITV sells Britbox International stake to BBC Studios for £255m

ITV has sold its stake in BritBox International to focus on expanding its streaming service and global studio operations.

The broadcasting giant has sold its 50 per cent stake in the digital subscription platform, which has around 3.75 million subscribers, to its joint venture partner BBC Studios for £255 million.

It intends to use the estimated £235 million in net proceeds from the transaction to fund a share buyback, which it plans to begin after publishing its annual results on March 7.

ITV said the deal reflected its strategy to focus on “powering” video-on-demand service ITVX and growing its television production arm ITV Studios.

The London-listed group will continue to receive a revenue stream “similar to current levels” from BritBox from the use of its shows as part of new licensing deals.

Tom Fussell, chief executive of BBC Studios, said: “The significant acquisition… fits with our stated ambition to double the size of our business.”

‘BritBox International focuses on British content and generates and meets demand for British programs outside the UK. “We will continue to make significant investments in the future to deliver long-term value to the BBC.”

BritBox first launched seven years ago in the United States amid the growing popularity of streaming services, including Netflix and Amazon Prime.

The platform was later expanded to Canada, Australia, South Africa and several Nordic countries, while a separately managed UK streaming service came online in November 2019.

Subscribers get access to old British films and TV series, as well as original content such as spy drama A Spy Among Friends, Irvine Welsh’s Crime and the revival of satirical puppet show Spitting Image.

Subscriber numbers increased throughout 2020 and 2021 as Covid-related restrictions on socializing led to people spending more time at home.

But BritBox faced massive competition to attract viewers in a streaming market saturated with bigger-budget rivals such as Hulu, Disney+ and Peacock.

Last month, ITV confirmed it would close the standalone BritBox UK service at the end of April, with all content and customers transferring to ITVX.

“BritBox International has always been the run of the mill when it comes to streaming services, with a primary focus on classic British television productions,” said Russ Mould, chief investment officer at AJ Bell.

He added: “While there is an audience for this type of content, it is much smaller compared to conventional platforms.”

ITV actions They soared 15 per cent to 63.5p on Friday morning following the sale announcement, making them the biggest gainer on the FTSE 250 index.