The BBC is to push ahead with plans to launch a British rival to Netflix, after getting the go-ahead from the government to develop a new subscription streaming service.

The project - which is understood to have the working title, Britflix - is believed to be a collaboration between the corporation and ITV, its main commercial rival, and is still in the early stages of development.

A White Paper on the future of the BBC, unveiled on Thursday, called on the corporation to develop “some form of additional subscription services” over the coming years, which ministers suggested could pave the way to the corporation adopting a mixed model of both licence fee funding, as well as additional, paid-for services.