ITV 'in advanced talks with Netflix over UK launch'

ITV is reportedly in advanced talks with Netflix about a content deal for the US video streaming giant's forthcoming launch in the UK and Ireland.

Netflix is thought to be nearing an agreement that would give it access to ITV's archive of programming.

However, the deal would not include new shows in the 30-day catch-up window, as that will remain primarily offered through the ITV Player on-demand service.

The Guardian reports one source as saying that commercial terms between ITV and Netflix have already been agreed and the two parties are currently sorting out the final legal issues.

"For Netflix a deal would mean a huge marketing partner to help its UK ambitions and for ITV it fits with their strategy of building pay revenue," one observer told the paper.

Netflix has been busying negotiating a raft of TV and movie content deals in preparation for its expansion into the UK and Ireland in early 2012, when it will compete directly with the Amazon-owned LoveFilm, Sky and Google's YouTube.

Yesterday, Netflix announced a deal with MGM enabling it to become the exclusive streaming partner in the UK and Ireland for most new films from the studio, including Peter Jackson's The Hobbit movies.

The US firm is also said to be in talks with Warner Bros about a similar subscription video on-demand (SVOD) rights deal for new and archive movies.

Sky currently holds those rights (as it does with most Hollywood studios), but its deal comes up for renegotiation next year and the satellite TV giant is also facing an investigation by the Competition Commission over its stranglehold over movie rights.

Separate talks between Netflix and movie studio Lionsgate and Momentum Pictures are also ongoing, although LoveFilm has a relationship with the latter company, along with various other studios.

Another source told The Guardian that Netflix was holding discussions with Channel 4, although these talks were said to be "a few weeks down the track from where ITV is at".