BBC To Launch U.S. OTT Service Next Year

In his address, Hall shot down rumors about a proposal to sell off the BBC Worldwide commercial division.

The BBC would not say what content would be available on the new service.

He noted that the BBC’s big upcoming dramas such as War And Peace and Dickensian were all dependent on co-production deals and investment involving BBC Worldwide. Because of this, that it takes British creativity to the world. Reuters reports that BBC’s director general Tony Hall confirmed the plans during an industry convention in Cambridge.

“We’ll begin to try out businesses that go direct to the public”, he said. “It is because of its special relationship with the BBC that it has scale”. “Next year – we’re launching a new OTT video service in America offering BBC fans programs they wouldn’t otherwise get – showcasing British actors, our program-makers, and celebrating our culture”.

The BBC is aiming to increase revenues from its commercial arm, BBC Worldwide, by more than 15pc to £1.2bn by 2020. The corporation had charged users subscription fees to watch programmes via the app in Western Europe, Australia and Canada. But there are many others that have never aired in the United States in any official capacity, and the company is hoping the opportunity to see them – and selections from its near-century as a broadcaster – will draw in new subscribers. “It is an indivisible part of the BBC”, he said.

While the commercial-free BBC remains a widely respected media brand both domestically and overseas , it has faced mounting pressure in the U.K.in an age where consumers have a myriad of alternative entertainment options, from Netflix and YouTube to cable and satellite. “That means we can invest more in programmes”, he said, adding that owning intellectual property allows the BBC to innovate, too.

It’s not clear what kind of revenue the BBC expects to generate from its new USA streaming service, nor indeed how much it will cost – either to build, or to use (although the “Netflix-style” terminology certainly hints at a low-priced monthly subscription).

The new service is one of several efforts by the BBC to raise more money internationally.