The BBC, home to crime dramas Luther and Line of Duty, and ITV, maker of dramas such as The Crown and Vanity Fair, are in the "concluding phase of talks" to create a rival to Netflix.
BBC director general Tony Hall said the aim was to launch "BritBox" in the UK in the second half of 2019.
The price was not announced but Lord Hall said it would be "competitive".
ITV's chief executive Dame Carolyn McCall said it would be home for the "best of British creativity".
Dame Carolyn told BBC Radio 4's Today Programme that 43% of all homes which use the Internet are interested in a subscription to BritBox. For homes which already subscribe to Netflix, she said that increased to half of all homes.
"There is a window of opportunity here," she said.
ITV will spend £25m on the venture this year and £40m in 2020.
The new venture is not intended to replace the BBC's iPlayer or the ITV Hub - the on-demand services where programmes are available for a restricted period of time.
It is expected to have box sets from the BBC and ITV archives.
There will also be some programmes commissioned only for BritBox.
Shows would appear on the relevant channels, then on the on-demand services before going on to BritBox.
The details have not been announced but BBC shows which are no longer aired regularly - such as Absolutely Fabulous - may be available.
ITV dramas such as Vera and Endeavour - and its predecessor Morse - are also likely contenders.
Dame Carolyn said that existing licensing agreements with Netflix will be honoured.