ITV chief executive Carolyn McCall said that ITV and the BBC have a ‘joint vision’ for the service and are working on a formal agreement for the service, expected to launch later this year.
Ms McCall also played down the notion that BritBox will compete directly with Netflix, insisting that the two services would be ‘complimentary’.
The joint UK streaming service could be said to intend on taking on competition from the likes of Netflix and Amazon.
The paid service, to be called BritBox, is also expected to bring together other broadcasters to put British boxsets and original series on demand in one place.
The broadcasters said it would boast the biggest collection of British content on any streaming service and feature ‘old favourites’, recent shows and new commissions.
Nevertheless, there has been speculation from viewers on Twitter asking why they should spend money on watching old BBC shows which they had already paid for with their TV licence.
The final point to make on BBC charging us for their TV archive is we've already paid for it. Our licence fee should give us free access to this stuff. We shouldn't be diddled for another fiver a month.
— Barry Collins (@bazzacollins) February 27, 2019
The plans come as terrestrial broadcasters face huge competition for viewers from Netflix content such as The Crown, Orange Is the New Black and Stranger Things.
BBC and ITV want viewers to pay for the subscription on top of the existing licence fee of £150.50-a-year, as well as any other video-on-demand services they pay for.