The BBC, ITV and Channel 4 are in serious discussions to create a combined streaming platform that would see their best shows available on-demand on a single platform. Although there is no deal in place, a source close to the talks told The Times, “a lot of hard work” was being done on all sides.

It appears this new joint endeavour would enjoy the support of media regulator Ofcom, unlike the failed Project Kangaroo, which was blocked by the Competition Commission in 2008. Ofcom Chief Executive, Sharon White, last week said she would support broadcasters to “exploit the internet to achieve greater scale.”

The broadcasters are hopeful that if their combined platform comes to fruition, it will challenge American goliaths such as Netflix and Amazon Prime, who currently hold the lion’s share of the market.

Traditionally, channels such as the BBC, ITV and Channel 4 dominated the UK broadcast market due to a lack of options for viewers. With increased connectivity, a shift towards on-demand viewing and a wider variety of digital services available, younger generations are turning their back on traditional outlets.

Traditional UK Broadcasters Risk Being Left Behind

In the BBC’s Annual Plan, published in May of this year, the company acknowledged it had to rejuvenate itself or risk being overtaken by its competitors. A recent report by Ofcom revealed that on-demand platforms now have more subscribers in the UK than pay-TV operators such as Sky and BT. According to the Broadcasters’ Audience Research Board, which conducts regular surveys about the UK’s TV landscape, roughly 80% of households are subscribed to at least one subscription-video-on-demand service.

According to figures from the TV rating body Barb, Netflix has 8.2 million subscribers in the UK and 4.3 million British households are signed up to Amazon Prime Video. Furthermore, it revealed that spending on original content by the BBC, ITV, Channel 4 and Channel 5 fell to a record low last year and had dropped by 28% since 2004. In comparison, both Netflix and Amazon have a deep library of US and global TV shows.

Netflix has enjoyed great success in creating original programming with shows like House of Cards, The Crown and Stranger Things. Considering the head-start of its competitors, it is possible that the proposed joint platform will not be enough to lure viewers away from the US heavyweights.