Discovery and BBC Studios have announced a multi-million pound global content partnership and agreement on the future of UKTV channels.
The UKTV deal is expected to be completed in late-spring 2019 and will see Discovery take full control of lifestyle channels Really, Home and Good Food, in line with its editorial strategy. The seven remaining channels - Dave, Alibi, Gold, Eden, Drama, W and Yesterday - will be acquired by BBC Studios, along with the UKTV Play digital player and UKTV brand. These entertainment channels will continue to operate under the UKTV brand out of UKTV's office. Upon completion of the deal, Marcus Arthur, President for UK, Ireland & ANZ at BBC Studios, will become CEO of UKTV.
As part of the UKTV deal, BBC Studios will make total payments of GBP 173 million to Discovery, including a balancing payment for the channels acquisition and assumption of GBP 70 million of debt currently financed by Discovery. BBC Studios will finance this using existing borrowing facilities. Discovery will also receive at least an extra GBP 10 million from UKTV as they will share the existing cash on the company's balance sheet. Discovery and BBC Studios have also signed a short-term programme licensing agreement for the supply of BBC Studios lifestyle content to Discovery's UKTV channels in the UK.
The content partnership covers premium factual content to power a new global streaming service, plus a bespoke development deal for BBC Studios' natural history, adventure, animals, science, space, travel, history and civilisation documentaries. The 10-year content partnership is effective for all territories outside the UK, Ireland and Greater China. It will make Discovery the exclusive global home for BBC landmark natural history programmes in SVoD, including the Blue Planet, Life, Dynasties and Planet Earth titles, as well as future BBC-commissioned series, following their linear broadcast. The new global streaming service will launch in 2020.
