ITV has sold its 50% stake in digital subscription streaming service BritBox International to joint venture partner BBC Studios for a cash consideration of £255 million.
Under the agreement, ITV will continue to receive an ongoing revenue stream from BritBox International, which is similar to current levels for the use of ITV content under the new extended licensing agreement. Meanwhile, BritBox UK will continue to be fully owned by ITV.
The move reflects ITV’s strategy of focusing on its streaming service ITVX and growing its global studios division.
The ITV board intends to return the entire net sale proceeds to shareholders through a share buyback which it plans to launch after its full year results (due on 7 March).
It comes after ITV announced it would be cutting back on new shows amid an anticipated advertising slump, as the broadcaster cut its Q4 outlook ahead of the festive season.
Channel 4 also unveiled job cuts amid an advertising slump, with advertisers moving away from the broadcast market.
Subscribe to Marketing Beat for free
Sign up here to get the latest marketing news sent straight to your inbox each morning
“The sale of 50% of BritBox International means ITV is focused on continuing to build on ITVX’s success and growing ITV Studios,” said ITV CEO Dame Carolyn McCall.
“I would like to thank the BritBox International team for making the company such a success and particularly CEO Reemah Sakaan for her leadership, drive and vision.”
Sakaan is stepping after three years in the CEO role.
BBC Studios CEO Tom Fussell added: “This is an important acquisition for us. We are taking full ownership of a successful growing service we know well and that fits with our stated ambition to double the size of our business. BritBox International has British content at its heart and it generates and satisfies demand for British shows outside the UK.”
“We will continue to make significant investments in the future to deliver long term value to the BBC.”
