UKTV Channels split between BBC and Discovery
(Reuters) – Discovery Inc and the BBC have agreed to split up broadcaster UKTV and strike a new 10-year agreement that will lead to the creation of a new global subscription video-on-demand service, the two companies said on Monday.
The new service, owned by Discovery, will pool the nature, science and wildlife libraries of the companies, and is aimed at viewers used to binge-watching shows on services like Netflix Inc.
BBC Studios, the commercial arm of the public broadcaster, will pay Discovery 173 million pounds ($225.40 million), which include the assumption of 70 million pounds of debt, to take over seven entertainment themed channels: Alibi, Dave, Drama, Eden, Gold, Yesterday and W.
UKTV is a cash cow for the BBC, with profits surging from £29m to more than £90m in the past eight years, valuing the business at about £1bn.
Discovery will assume ownership of UKTV’s lifestyle channels Good Food, Home and Really.
So, the BBC take full control of:
Alibi (+1, HD)
Dave (+1. HD)
Gold (+1, HD)
W (+1, HD)
Eden (+1, HD)
Discovery have acquired:
Good Food (+1, HD)
The deal is expected to complete in late Spring (2019)