The BBC is working on a subscription streaming service that will rival Netflix. Believed to have the working title Britflix, the service has been given the green light by the government after it published its white paper last week on the future of the BBC.
Britflix will see the Beeb team up with commercial rival ITV. It's still in the early stages of development.
It's believed the service will help pave the way to a mixed model of funding for the BBC. This would see the corporation receive funding from the licence fee alongside subscription fees.
Last week's government white paper guaranteed that the licence fee will exist for at least another 11 years. However, it also called on the Beeb to develop "some form of additional subscription services" – hence the Britflix streaming service.
According to sources, NBC Universal is also on board. The service would be delivered through the BBC's iPlayer platform and offer the BBC's archive content plus original series.
Culture secretary John Whittingdale claimed that the subscription service was the BBC's idea.
The BBC has told viewers they don't need to worry about BBC shows disappearing behind a paywall. One source told The Telegraph: "It's not like you'd have to pay for a second series of 'The Night Manager'."
The service echoes the fabled Project Kangaroo – this was a streaming service that was supposed to see major UK broadcasters collaborate. However, it was blocked by regulators in 2009 because of fears it would stifle competition.
Source: The Telegraph