The BBC, home to crime drama Luther, and ITV, maker of Love Island and I’m A Celebrity, are in the “concluding phase of talks” to create a rival to Netflix.
The BBC’s director general Tony Hall said the aim was to launch the “BritBox” rival to Netflix in the UK the second half of 2019.
The announcement came as ITV reported 2018 profits of £567m, up 13%.
ITV’s chief executive Dame Carolyn McCall said it was an “uncertain economic and political environment”.
She said the “BritBox” rival to Netflix will be the home for the “best of British creativity”.
Neither organisation would say how the services would be priced, but Lord Hall said it would be “competitive”.
There are reports it could cost £5 a month.
The two organisations already have a BritBox streaming service in North America which Lord Hall said was “ahead of expectations”.
“Research with the British public shows that there is a real appetite for a new British streaming service – in addition to their current subscriptions,” he said.
Dame Carolyn told BBC Radio 4’s Today Programme that 43% of all homes which use the Internet are interested in a subscription. For homes which already subscribe to Netflix, she said that increased to half of all homes.
ITV will spend £25m on the venture this year and £40m in 2020.