BBC, ITV Unite to Offer Netflix Alternative

BBC merged with television network ITV to start streaming service that will compete with Netflix in the UK.

Video-on-demand service britbox will launch the service in the last three months of this year for $7.50 per month.

The subscription cost will be a major competitive advantage for the new service, which is set to be $3.75 cheaper than Netflix's HD package, and the same as the basic one.

Users will get access to shows and new programs through multiple channels, including popular series "Victoria and Love Island."

[caption id="attachment_66762" align="aligncenter" width="640"] ITV and BBC conference on britbox[/caption]

"Together, we have been responsible for delivering the majority of 'must-see' moments on British TV over the last decade," Tony Hall, BBC director-general said, adding that this content will now be available on BritBox.

Britbox, which is already available in Canada and the US will hold 90 percent stake in the joint venture, while the BBC will hold between 10-25 percent.

Not only britbox but, other media giants are competing with Netflix in the streaming market. Some of these companies such as Disney, Amazon, Apple, NBCUniversal, and CNN's WarnerMedia have already pulled shows they authorized to Netflix to utilize it on their new platforms.

[caption id="attachment_66760" align="aligncenter" width="624"] Netflix share price chart[/caption]

Last year, UK media regulator Ofcom published a survey suggesting that Netflix has 9.1 million subscribers in the UK alone.

Netflix has more than 150 million subscribers worldwide, however, only 2.7 million new users signed up in the second quarter this year.

In the meantime, Netflix shares dropped 10 percent at $315.10 following disappointing subscribers slump.