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Sky’s Major Acquisition of ITV’s TV and Streaming Channels
One of the most significant transactions in British media history is imminent with the formation of a new British media company, though it will be American-owned.
Sky is anticipated to acquire ITV's television and streaming channels for up to £1.6 billion, as announced by both companies on Monday.
Sky, a pay-TV, broadband, and mobile operator owned by the American company Comcast, has been negotiating to purchase ITV's media and entertainment business, including ITVX, since last year.
For Sky, acquiring the broadcast division of the UK's most-watched commercial public service broadcaster is strategic. It will gain access to millions of viewers, along with scale and visibility on a free-to-air platform.
The company is believed to aim to establish a commercial streaming service that can genuinely compete with Netflix and Disney Plus within the UK market. But what implications does this have for viewers?
Your Favourite Shows Aren't Going Anywhere… Yet
ITV is the UK's oldest commercial network, having launched in 1955 as a competitor to the BBC.
Importantly, this acquisition will not result in your favourite ITV programmes suddenly being placed behind a paywall.
Caroline Frost, TV and podcast editor at Radio Times, explains, "ITV is required by law to provide a free-to-air service until at least 2034 due to the public service broadcasting licence."
"Gradually, though, content which might debut on free/live-to-air ITV might end up on a subscription platform," Frost adds.
In the short to medium term, flagship shows such as Coronation Street, Love Island, Emmerdale, and I'm a Celebrity will remain unchanged. They will continue to be available on ITV and ITVX and produced by ITV Studios, ITV's production division, which owns over 60 production companies both in the UK and internationally.
ITV Studios also produces programmes such as Line of Duty for the BBC, Rivals for Disney Plus, and America's most streamed show, Love Island USA.
ITV Studios is not included in Sky's acquisition. If the deal proceeds, ITV Studios will become an independent company (ITV Studios PLC), remaining under the ownership of current ITV shareholders. The acquisition agreement is expected to include a "supply deal," ensuring ITV Studios continues producing ITV shows that remain broadcast on ITV.
The international ITV Studios production and distribution arm is excluded from the deal and will continue operating as a separate entity.
Of course, in the future, Sky could choose to discontinue some ITV shows or renegotiate contracts. Acquisitions typically aim to realize efficiencies, and some analysts suggest potential synergies on the technology side, possibly merging ITVX with Sky's streaming services.
In the longer term, Frost anticipates that users of ITVX and NOW may experience more "integrated services, for example, bundling titles by genre rather than channel, as a natural way to reduce production costs and cross-promote content."
However, significant changes to popular programmes will not be possible until the supply deal expires.
Producer Patrick Spence describes the deal as "exciting." He won a BAFTA for "Mr Bates vs The Post Office," which was a major success on ITV in 2024, attracting approximately 15 million viewers. He is currently producing "Two Birds," a thriller starring Sheridan Smith for ITV.
Having produced dramas for Sky as well, Spence notes that ITV and Sky "are very good bedfellows in many ways."
"When they get behind a show, they really get behind it," Spence says. "They want to make water cooler shows that bring audiences together."
"We get told so often about the death of broadcast TV," he adds. "For producers it's said we're looking at a cliff edge where the only places that will be left for us to sell our programmes will be the streamers, or some version of BBC, ITV, all joining together.
"What I take away from this deal as a producer and an audience member is that Sky must really like and believe in ITV to be only buying the network. They think there is a business to be grown and driven that uses the audience reach and loyalty that the ITV network has."
ITV in Talks to Sell Television Business to Sky
YouTube is now second only to the BBC as a media destination.
Questions have been raised about whether former Google executive Matt Brittin is the right person to lead the BBC.
There is a sense of nostalgia among some that ITV — one of Britain's best-known brands, which has played a significant role in shaping UK culture for decades — is being sold to an American company.
Others express concern that increasing ownership of UK media by US companies could negatively affect the distinctiveness of British programming.
However, Camilla Lewis, founder of Curve Media, which produced "Chess Masters: The End Game" among other shows, argues that "the streamers are realising the importance and power of parochial programme making."
She notes that Netflix did not anticipate the global popularity of the distinctly British drama "Baby Reindeer," and Disney commissions "Rivals," which also has a very British sensibility.
"There is a constant battle between LA and London as to what gets commissioned by the US streamers," Lewis adds. "But there is demand for British content which has influenced commissioners.
"A Sky-ITV company would be foolish to pivot away from commissioning programmes with a national identity. It wouldn't make business sense."
Sport and Public Service Broadcasting
Sky is widely recognized for its sports coverage; for example, it broadcasts the majority of televised Premier League games and holds UK rights to Formula 1 until 2034.
One attraction of the acquisition for Sky is that, as a public service broadcaster, ITV can bid for 'listed' major sporting events that must be shown live on free-to-air channels, such as the Olympic Games, the Grand National, and the British Grand Prix.
This explains why Wimbledon is broadcast on the BBC and why both the BBC and ITV show the World Cup, which draws millions of viewers and generates substantial advertising revenue for ITV.
Former ITV Chairman Peter Bazalgette told me, "sport is a massive driver of live viewing and advertising revenue."
"Putting together the sports powerhouse of Sky's football Premier League deals with the sport that is on ITV - the World Cup, the Rugby Six Nations - is probably one of the most attractive things for Comcast."
For viewers, this could mean that Sky might use ITV's platforms to showcase programmes typically behind its paywall. Depending on rights, a Premier League match could be broadcast free on ITV as a means to attract new rs to Sky's platforms.
It is not only some of Sky's sports content that might appear on ITV. For instance, the first series of its Eddie Redmayne drama "The Day of the Jackal" could air on ITV before the second series premieres on Sky's subscription channel. Similarly, its comedy show "Saturday Night Live UK" could reach a broader audience if broadcast on the UK's largest commercial broadcaster.
While Coronation Street may no longer attract its peak audiences, it still draws four to five million viewers. ITV's top shows remain among the UK's best performers, and Sky will gain access to these audiences.
A Sky programme like "The Dyers' Caravan Park," featuring father-daughter duo Danny and Dani Dyer attempting to revive the British holiday industry, could potentially reach a much wider audience on ITV following the acquisition.
Sky Television was launched by media mogul Rupert Murdoch in 1989, merging with its competitor British Satellite Broadcasting the following year.
As a public service broadcaster, ITV, like the BBC and others, must be given a prominent position on TV or set-top box interfaces.
In an increasingly competitive environment, prominence is crucial, which is why UK law mandates that public service broadcaster channels and on-demand services be easy to find and access, appearing at the top of electronic programme guides and smart TV home screens.
This prominence is another advantage for Sky. However, ITV's public service broadcasting licence, which runs until 2034, carries specific obligations.
In exchange for these benefits, ITV must broadcast a defined amount of national and regional news, and 85% of the content shown during peak hours must be original programming.
Additionally, ITV is required to commission a proportion of programmes produced outside London. For the next eight years, until the licence expires, these conditions will remain unchanged.
Who Produces the News?
There is some concern at ITN, which has produced news bulletins for ITV since the channel's launch in 1955.
ITN also produces "Good Morning Britain," and its contract with ITV has been renewed until 2031. Following the acquisition, Sky would be obliged to honour this contract.
However, once the contract expires in five years, questions arise about the practicality of maintaining two separate newsrooms.
operates a 24-hour rolling news service but does not produce regional news, an area where ITV excels, highlighting differences between the two.
After 2031, it is conceivable that ITV's "News at Ten" could be produced by , or that ITN, which also produces news for and Channel 5, might provide Sky's rolling news channel.
These considerations are speculative, and questions remain about whether Sky will continue as a public service broadcaster after ITV's licence expires in 2034. The media landscape may evolve significantly by then.
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