Sky promises more free-to-air sport, but regulatory hurdles await ITV and Sky’s deal, which will see the commercial broadcaster being split into two and Sky taking a shareholding in ITN.
- ITV channels and ITVX’s future with NBCUniversal-owned Sky.
- Sky commits to retaining ITV’s public service remit until 2034 only.
- Sky and ITV reach agreement that allows both to use ITV brand.
Sky finally confirmed this morning that it will acquire ITV, formalising a deal that had been leaked to Reuters two weeks ago. While not a surprise, the announcement marks a significant consolidation within the UK broadcasting sector, bringing together Sky’s subscription‑based platforms and ITV’s free‑to‑air network under one ownership structure. The deal is worth £1.6 bn.
What’s in the deal?
Under the deal,
- ITV will continue as a production company, encompassing ITV Studios
- ITV will take over Sky-owned Love Productions
- Sky will take over ITV’s broadcast channels and ITVX
- Sky will take over ITV’s share in news provider ITN
- ITV Studios will continue to supply ITV channels with content in an additional deal worth over £2 billion.
To appease regulators and politicians, who may block the proposed deal,
- ITV News and Sky News will be kept editorially separate
- Sky will retain ITV’s regional service and public service remit until 2034
- ITV’s current service will stay free-to-air
- ITV will be able to tap into more live sport, courtesy of Sky.
No news on…
Initial documents published by the two broadcasters do not cover…
- ITV’s shareholding in Everyone TV, the platform operator that runs Freeview, Freely and Freesat
- ITV’s Digital Terrestrial Television business SDN.
…details about how these are handled are more sensitive and subject to regulatory action.
Sky hasn’t confirmed potential service changes at its end. For example, the broadcaster would become the owners of both Challenge and ITV Quiz. It’s also unclear if it would continue to broadcast Sky Mix or Sky Arts. Sky Mix was designed as a showcase of Sky’s content on free-to-air platforms. Sky Arts’ free-to-air switch at the beginning of the decade was meant to cement Sky’s public service broadcasting creditentials, coming at a time when it had argued it should also be considered a PSB. Content from both free-to-air brands could be consolidated on to existing ITV channels or ITVX.
In its statement, Sky said the move would “support long‑term investment in British content and strengthen the competitiveness of UK media internationally.” The company highlighted the potential to integrate ITV Studios’ production capabilities with Sky’s distribution channels, though executives stressed that ITV’s public‑service obligations would remain in place until 2034. Sky would not comment on ensuring ITV’s longer term status as a public service broadcaster.
ITV described the agreement as a “logical progression” following months of strategic review. The broadcaster noted that its channels would continue to be available free of charge. It also confirmed existing commissioning plans for drama, entertainment and factual programming would proceed as scheduled.
Sky secures rights to continue showing ITV Studio programmes
A five year content deal between ITV Studios and Sky safeguards popular shows including I’m a Celebrity and Coronation Street. The deal is worth over £2bn. The size of the deal reflects the fact that Sky will now need to buy in programming from what’s left of ITV Group. It also stops top ITV shows from being poached by other broadcasters and streamers.
Sky also says ITV will be able to screen more live sport. This may include the occasional freebie currently offered on Sky Mix. Taking over ITV means Sky will find it easier to bid for listed sporting events. For so-called Group B events, such as live home test cricket, Ryder Cup golf or Six Nations rugby games, Sky could offer rights holders a single package with primary coverage on Sky Sports and selected coverage or highlights on ITV channels. That would save Sky or rights owners needing to separately negotiate free-to-air coverage contracts.
Sky previously made some of its sports TV coverage available free-to-air through a partnership with Channel 4.
No name change
A deal has also been reached to allow both the remainder of ITV (ITV Studios) and Sky to use the ITV brand name. ITV Studios will continue to supply content to the ITV channels in a five year deal.
Regulatory scrutiny is expected, particularly from Ofcom and the Competition and Markets Authority, which will assess the implications for advertising markets and media plurality. Analysts say the combined organisation could streamline operations and accelerate digital investment, though they caution that integration of two large broadcasters typically brings operational challenges.
Market reaction was muted, reflecting the extent to which the deal had already been priced in. ITV shares rose modestly in early trading, while Sky’s parent company saw little movement.
Under the deal, ITV’s current TV channel business would ultimately come under the control of NBCUniversal, who will become Sky’s parent company after current owner Comcast completes the spin-off of its media and broadcasting business. Comcast will remain a technology and infrastructure provider.
A deal in its proposed form is not guaranteed. Last week, Culture Secretary Lisa Nandy said she was minded to review Paramount’s deal to take over Warner Bros Discovery (WBD). That deal would bring (Channel) 5 and TNT Sports under common ownership. It would therefore be no surprise if politicians have a final say on ITV and Sky’s future. However in the process, some of the details affecting public broadcasting not included in today’s announcements may finally come into the public domain.
By: Marc Thornham | Image: Sky ITV