The BBC is to drop 'Neighbours', it announced today. The Australian soap has been a BBC1 fixture for the past 21 years.
But the Corporation has decided to axe it as a result of an "unrealistic price demand" of £300 million over eight years by distributor Fremantle. The BBC formally withdrew from bidding this afternoon.
'Neighbours' will disappear from the channel when the current contract ends in March or April next year. Rivals ITV1 and Five are now expected to bid for the show.
BBC1 controller Peter Fincham called it a "sad day" for the channel.
A BBC statement said: "We have this afternoon formally withdrawn from the bidding for 'Neighbours'. The BBC has had a long and fruitful relationship with 'Neighbours', which has transmitted on BBC1 for 21 years, and this has come to an end because of an unrealistic price demand.
"We do not believe that we could have justified to BBC viewers a price tag of what would have amounted to some £300 million across the term of the contract. Paying that sum would also have compromised our ability to invest in new original programmes. We made a fair offer and are sad that we have not been able to reach terms with Fremantle."
