How the Sky-ITV Deal “Could Reshape UK TV Landscape”

One of the biggest shake-ups in UK media history could be about to happen, as Sky is in talks to buy ITV’s media and entertainment division for a reported £1.6 billion.

The repercussions for advertisers and media agencies could be dramatic, if the deal goes through. And experts in the space are watching closely. “Sky’s potential acquisition of ITV could reshape the UK TV landscape, but not without friction,” says Martin Donnelly, media investment director at PMG UK. “On paper, it’s a powerhouse move: two giants finally collaborating to reclaim market share from streaming and digital rivals.”

Collaborating is one way of putting it, but ultimately Comcast’s Sky absorbing ITV would mean a market with one less media owner to buy space from. “In practice, it could create the most dominant media owner the UK has ever seen, and that should give advertisers pause,” considers Martin.

​Ian Daly, head of AV investment at the7stars underlines the scale of this potential deal: “Comcast’s proposed acquisition of ITV’s media business is ultimately about consolidating domestic advertising power. If successful, Sky and ITV’s combined media assets would command around 70% of UK TV ad revenues and, crucially, control the country’s most prominent broadcast real estate. ITV’s EPG positions and trusted brand allow it to capture a larger share of ad spend than its viewing share – arguably the real prize for Comcast.”

Media observers are wary of that market share being concentrated. Unfinished’s co-CEO, Oli Cooper, is one of them. His first concern is that a new, enlarged Sky would have a dominant position across the traditional broadcast market. “Safeguards would need to be put in place to ensure this dominance isn’t abused such that advertisers are ultimately left paying the price for the acquisition,” he says.

But if such a deal were to go through, it would be hard to stop that effect on the market. “A Sky-ITV joint venture would inevitably put upward pressure on trading rates, impacting competition and value for brands,” says Martin. “Comcast will face pressure to lift yields,” agrees Ian, “and could use its new market power to push up prices for advertisers.”

Market pressures are one thing, but for all its reliance on data and algorithms, advertising media still requires humans in the mix. “An acquisition would undoubtedly mean job losses across the two companies,” asserts Oli. “Servicing and support to advertisers and agencies is extremely stretched following recent restructures in the sector (including at Sky) so this is only likely to exacerbate the situation.”

Ultimately, this would seem likely to result in more difficulty for anyone trying to buy media from the newer, bigger Sky operation. “For agencies, consolidation may come with headcount cuts or slower service, meaning longer lead times, slower comms, and potential impacts to delivery, reporting, and measurement,” shares Martin.

The technological side of such a corporate collision can’t be straightforward either. “Integrating two huge sales operations with different data systems and cultures often creates interruptions before it’s efficient,” says Martin.

There is potential for this to be a good thing for TV, of course. “If this merger forces true broadcaster collaboration; unified planning, cross-platform targeting, shared measurement, it could finally modernise how TV is traded and reported. Long-term, that’s the opportunity.”

Removing friction and simplifying the process of media buying is naturally going to be a vocal goal of the organisations involved in this potential deal. And there is real progress that’s possible there, albeit likely to be further down the tracks. “A single sales point would bring multiple benefits to advertisers across size and breadth of audiences, measurement and buying capabilities and streamlined technology,” says Oli.

For Ian, the strategic logic lies in yield, data and leverage. “Combining Sky’s addressable advertising technology with ITV’s mass reach to create a single, data-driven proposition that keeps UK TV ad budgets within the domestic ecosystem, rather than losing them to Google and Meta – and potentially opening new routes to SME advertisers,” he says.

For commercial TV, a business which turned 70 in recent months (along with ITV), this could give Sky and ITV the heft they need to stand up to their biggest competitors for media spend. “From a business point of view, this acquisition would make total sense,” admits Oli. “The real competitors for the broadcasters are the tech behemoths like Google, Amazon and Meta, all of whom have greater scale and deeper pockets. The pooled resources of a combined Sky and ITV stands a much better chance of being able to compete against their offerings.”

From another perspective, this could have an impact on the regulatory landscape. “If a Sky/ITV deal is to be considered in the current context, it cannot be assessed in isolation,” considers Dan Gee, managing director of Media Futures Market. “The rise of algorithmic platforms has created a media environment where huge volumes of attention and ad spend flow through systems that monetise entertainment and information while disclaiming responsibility for its accuracy, cultural impact, or societal harm. UK broadcasters, by contrast, operate within well-defined editorial and public-interest frameworks.

“So yes, consolidation could make TV more operationally competitive against the platforms. But this moment should also prompt regulators to raise the floor, not just scrutinise broadcasters’ scale. The platforms effectively function as mass-reach publishers and should be held to commensurate editorial and advertising standards.

“Strengthening TV only matters if we also ensure its competitor set is required to play by rules that protect cultural representation, truthfulness, and accountability in the public sphere."

It’s always advisable to view these industry shake-ups with hope, so that we can find routes to the best outcome for all. There’s excitement among those in the media space about what possibilities this scale of deal might hold. In the meantime, we’ll be watching to keep collaborators and clients safe from the possible pitfalls of such a deal. “In the short term, advertisers will pay more and get less agility,” says Martin at PMG. “It’s a reminder that consolidation doesn’t always mean progress, sometimes it just means fewer people left to answer your call.”