The BBC and ITV streaming service, which will be called BritBox, will rival Netflix and Amazon Prime.
The two broadcasters are said to be “in the concluding phase” of talks regarding the service.
Others channels, including Channel 4 and Channel 5, are expected to join the service too.
The UK streaming service, which is set to launch later this year, aims to put British releases in one place.
“A new streaming service delivering the best home-grown content to the public who love it best”
BBC Director-General Tony Hall
The BBC and ITV said that BritBox will host the biggest collection of British content on any streaming service.
They said it will feature “old favourites” as well as recent shows.
There will also be new commissions produced specifically for BritBox.
ITV chief executive Carolyn McCall commented: “BritBox will be the home for the best of British creativity – celebrating the best of the past, the best of today and investing in new British originated content in the future.”
BBC Director-General Tony Hall added: “A new streaming service delivering the best home-grown content to the public who love it best.
“It’s an exciting time for the viewing public.”
The cost of subscriptions has not yet been revealed.
A US version of BritBox already exists, with a subscription costing $ 6.99 (£5.26).
The broadcasters said they have enjoyed success with the American version.