BBC ‘blown out of water’ by Netflix

The BBC’s director of TV has warned the UK pubcaster is struggling to compete with subscription VoD platforms such as Netflix that are able to “blow them out of the water” for programme rights.

Danny Cohen

Danny Cohen said the rise of California-based Netflix, as well as heavy investment in TV dramas from Sky and ITV, means the corporation is facing “hard choices.”

“There’s been a recent example where Netflix was able to blow us out of the water in terms of a deal,” Cohen told the Financial Times.

“The sums offered by Netflix were five times what we could offer.”

Netflix has ramped up its online platform with TV shows including political thriller House of Cards and dark comedy Orange is the New Black during the last two years and is expanding heavily worldwide.

Cohen said the BBC had to adjust to a “hybrid world” of both live and online viewing.

He added: “Television’s not going away, channels are not going away for quite some time, but more people are going to watch online.”

His comments come after BBC director general Tony Hall confirmed in March the organisation’s plans to cease operating its youth-skewing BBC3 brand as a broadcast channel but maintain it online.

The strategy will reportedly save the BBC over £50m (US$85.6m) a year – £30m of which will be pumped into drama on flagship network BBC1.

In related news, Cohen recently said the broadcaster was at a crossroads and argued reducing its size would result in far-reaching damage to the UK’s creative industry.