{"id":3679,"date":"2026-07-06T22:37:37","date_gmt":"2026-07-06T22:37:37","guid":{"rendered":"https:\/\/relocationobserver.com\/?p=3679"},"modified":"2026-07-06T22:37:37","modified_gmt":"2026-07-06T22:37:37","slug":"skys-itv-deal-gives-u-k-producers-hope-but-u-s-tv-distribution-could-see-adverse-ripple-effect","status":"publish","type":"post","link":"https:\/\/relocationobserver.com\/?p=3679","title":{"rendered":"Sky\u2019s ITV Deal Gives U.K. Producers Hope But U.S. TV Distribution Could See Adverse Ripple Effect"},"content":{"rendered":"
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\n\t\u201cITV Studios is not for sale,\u201d Carolyn McCall, boss of U.K. media conglomerate ITV, firmly told Variety<\/em> three years ago.<\/p>\n

Read more \u2018The Odyssey\u2019 First Reactions Are Raves for Christopher Nolan\u2019s \u2018Astonishing\u2019 Epic and \u2018Flawless Filmmaking\u2019: \u2018Breathtaking, Bold and Perfection\u2019<\/a><\/p>\n

\n\tDespite persistent rumors the global production powerhouse was going to be snapped up \u2013 including potentially by Banijay or RedBird IMI \u2013 McCall has stayed true to her word.<\/p>\n

\n\tWhat few could have imagined back then was that ITV itself was for sale. On Monday, after months of negotiations McCall confirmed the 71-year-old public service broadcaster is set to be acquired by Comcast-owned Sky in a deal worth up to $2.1 billion. What\u2019s more, McCall admits it was ITV who approached Sky; she told investors it was \u201cthe company at the top of the list\u201d to partner with.<\/p>\n

\n\tOf course there is every chance ITV Studios will still be sold, despite McCall\u2019s plans for it to stand alone as a listed company on the London Stock Exchange, with buyers already said to be circling. And the Sky\/ITV deal will need to get past regulators, a process McCall admitted could take up to two years.<\/p>\n

\n\tBut for now, it seems yet another U.K. broadcaster has slipped out of British hands, following in the footsteps of fellow PSB Channel 5, which was acquired by Viacom in 2014 and Sky itself, which was acquired by Comcast in 2018.<\/p>\n

\n\tSomewhat surprisingly, those at the coalface are pragmatic, if not actively upbeat, about the proposition of Sky taking over ITV. \u201cI may be in a small minority here, but I\u2019m actually quite positive about the merger,\u201d said one executive, the CEO of an independent production company, who spoke on condition of anonymity. One reason for the optimism, the exec admitted, was because ITV commissions so much from its own stable of production companies at the expense of others that \u201cnot many indies bother pitching to ITV anymore.\u201d Sky, said the exec, is \u201cmore approachable.\u201d<\/p>\n

\n\tWith ITV Studios being spun off and Sky potentially taking over commissioning (although nothing has been decided in that regard), there might be more opportunity for independent production companies in the long-term. In the short-term it\u2019s less promising, given one of the deal terms includes a commitment from Sky to spend \u00a32.1 billion on ITV Studios content over the next five years.<\/p>\n

\n\tProducer Patrick Spence, who made award-winning ITV series \u201cMr Bates vs The Post Office,\u201d was equally positive, telling the BBC he saw the deal as a vote of confidence in linear TV. \u201cWhat 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,\u201d he said. \u201cThey think there is a business to be grown and driven that uses the audience reach and loyalty that the ITV network has.\u201d<\/p>\n

\n\tThat sentiment was echoed by Sheldon Lazarus, head of Fulwell-owned factual production outfit Bitachon365. \u201cI\u2019m not worried at all,\u201d Lazarus told Variety<\/em> of the deal\u2019s potential impact on producers. \u201cIt\u2019s a real testimony to the creativity of this country, because otherwise, why else would you buy a platform like this?\u201d<\/p>\n

\n\tLazarus recalls similar hand-wringing over what was then Viacom\u2019s acquisition of Channel 5, noting: \u201cI think we\u2019ve sort of moved on from that.\u201d Three years after that sale, analysts Enders noted Channel 5 boasted \u201can increased content spend, development of new titles and clarity as to its targeted audience.\u201d<\/p>\n

\n\tNow, more than a decade on, the channel continues to thrive, hitting a three-year high content spend in 2024 while its peers slashed budgets.<\/p>\n

\n\tSir Peter Bazalgette, former chair of ITV, is adamant that consolidation is now the only way for PSBs to survive as they try to compete with U.S. giants such as Google, Disney and Netflix. \u201cDomestic broadcasters across Europe are under considerable pressure from not just the streamers, but also from YouTube,\u201d he told Variety<\/em>.<\/p>\n

\n\tThe figures bear that out. According to U.K. ratings body BARB, Sky and ITV\u2019s combined share of U.K. TV and streaming viewing was 17.7% in May (the most recent figures available) compared to YouTube\u2019s 18.6%.<\/p>\n

\n\tBazalgette said it was a situation that U.K. regulators, led by the government, are beginning to accept, which is why the Sky\/ITV deal will almost certainly get through. While Bazalgette acknowledged that together Sky and ITV may dominate the market for television advertising, with a combined share of around 70%, \u201cthe reality of how the market operates is nothing to do with that,\u201d he said, with video advertising now fragmented across YouTube, Meta, TikTok and other platforms. In that context, Sky and ITV\u2019s joint share represents only a 20 to 30% market share.<\/p>\n

\n\tBazalgette thinks the deal may prove to be equally beneficial for audiences, given that Sky is one of the U.K.\u2019s most dominant pay TV sports broadcasters. \u201cYou\u2019re putting free-to-air sport together with pay sport,\u201d he explained. \u201cYou could get much more advantageous windowing for viewers.\u201d<\/p>\n

\n\tFor Sky, sharing its sports content with ITV could be win-win, benefiting from the advertising revenue while potentially funnelling viewers towards its pay-TV packages. During a press call this morning, Sky CEO Dana Strong already confirmed \u201cWe want to put more sport into free [to-air].\u201d<\/p>\n

Read more V\/H\/S Franchise Sets New Roy Lee and Steven Schneider-Produced Movie Based on SCP Foundation Universe (EXCLUSIVE)<\/a><\/p>\n

\n\tThe indie CEO speculated there would also likely be a cross-over of content at some point, with Sky potentially using ITV as a \u201cshop window\u201d for its pay-TV offering (\u201cSNL U.K.\u201d would certainly be a viable candidate, given its limited ratings opportunities on Sky One, where it currently airs).<\/p>\n

\n\tConversely, some viewers expressed concern they might see their favorite ITV shows such as soap opera \u201cCoronation Street\u201d and dating show \u201cLove Island\u201d end up behind a paywall. However, Bazalgette said he doesn\u2019t think \u201cthere\u2019s going to be huge change for viewers\u201d partly because ITV has a PSB broadcast licence, which runs through to 2034, meaning it has explicit obligations about domestic and regional commissioning. Combined with the ITV Studios output deal (both \u201cCoronation Street\u201d and \u201cLove Island\u201d are produced under Studios), it means they are guaranteed to be free-to-air, at least in the near future, a fact Strong restated publicly. But again, the question is what happens when those deals expire.<\/p>\n

\n\tIt\u2019s a question troubling Stewart Purvis, former CEO of ITV\u2019s contracted news producer ITN and Ofcom partner for Content and Standards. Unsurprisingly, given Purvis\u2019 background, he is particularly interested in the future of Sky and ITV\u2019s news output. While Strong has committed to keeping the newsrooms separate at least until 2030, when ITV\u2019s contract with ITN runs out, Purvis remains circumspect. \u201cIt\u2019s all very well to say these contracts exist, but do they necessarily stop a merger [of the newsrooms]?\u201d<\/p>\n

\n\tTo complicate matters further, ITV owns a 40% stake in ITN, which it says will be split between Sky and ITV Studios, a factor that also concerns Purvis. \u201cI\u2019m going to be pushing the competition authorities to understand what safeguards can be done,\u201d he said.<\/p>\n

\n\tPurvis was keen to clarify he is not \u201canti-American\u201d but maintained it would be far from ideal to have the majority of the U.K.\u2019s PSBs owned by U.S. companies, particularly given the U.S. media landscape is itself so volatile. \u201cWe simply have no idea who\u2019s going to own each of these networks tomorrow,\u201d he said. Given Comcast itself is set to spin-out NBCUniversal as a separate company \u2013 one ripe for acquisition \u2013 it\u2019s not an unreasonable consideration.<\/p>\n

\n\tAlthough two U.S.-owned PSBs may not seem like a lot, that number represents 50% of U.K.-wide PSBs. The remaining two \u2013 Channel 4 and the BBC \u2014 are both publicly owned and facing uncertain futures. Channel 4 narrowly escaped privatization under a previous government while the BBC, whose top job has just been filled by a longtime Google exec (Matt Brittin), is desperately slashing jobs and budgets as it tries to shore up funding.<\/p>\n

\n\tIt\u2019s perhaps why shortly after unveiling the deal, McCall was given a grilling by financial and trade journalists during a media call, who demanded her thoughts on everything from the \u201cAmericanization\u201d of British TV to why companies are leaving the London Stock Exchange (last week low-cost airline EasyJet, which coincidentally McCall also used to manage, agreed to a takeover by a U.S. investment firm).<\/p>\n

\n\tIn the U.K. media, the initial reaction the Sky\/ITV deal was certainly on the gloomy side: more consolidation and more U.S. imperialism (in a quirk of fate, news of the Sky\/ITV deal came less than 48 hours after the States celebrated its 250th Independence Day) alongside potentially fewer companies trading on the London Stock Exchange and fewer jobs, which Philippa Childs, head of crew union Bectu, addressed in a statement demanding \u201cassurances that there will not be cuts to jobs or terms and conditions as a result of this takeover.\u201d<\/p>\n

\n\tBoth Strong and McCall acknowledged there likely will be some loss of jobs in both Sky and ITV, although they said these would likely be concentrated in marketing and technology.<\/p>\n

\n\tMore concerningly for North American distributors, both also said cuts would likely be made to \u201cnon-U.K. content,\u201d in which ITV invests around \u00a3100 million a year.<\/p>\n

\n\tWith a closed-shop pipeline of U.S. content via NBCUniversal, there would be little need to look elsewhere (although interestingly, a look at ITV\u2019s schedules across its four networks this week showed its U.S. content was already predominantly represented by re-runs of NBCUniversal franchise \u201cReal Housewives\u201d).<\/p>\n

\n\tIn the U.K. at least, producers are trying to look on the bright side. \u201cIs it going to reduce commissioning? Well, commissioning is reducing anyway,\u201d the indie CEO said. \u201cI personally would rather have a healthy ITV and healthy Sky who are commissioning something rather than both of them going out of business.\u201d<\/p>\n

\n\tIt was almost 20 years ago that Sky, then still owned by Rupert Murdoch\u2019s News Corp, first tried to take over ITV, triggering a punitive response from regulators. Today \u2014 a testament to the almost unrecognizable media landscape \u2014 it\u2019s almost certain they will wave it through.<\/p>\n

\n\t\u201cThis transaction is a pragmatic response to a changing market rather than a transformational bet,\u201d explained Giao Pacey, partner at leading media and entertainment law firm Simkins LLP. \u201cThe key question now is whether regulators are prepared to accept that creating a stronger U.K. media champion can be achieved without compromising competition, consumer choice or media plurality.\u201d<\/p>\n

Read more Orbital Studios Moving to Television City Lot \u2013 Film News in Brief<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As Sky is set to acquire U.K. public service broadcaster ITV, Variety examine the winners and losers.<\/p>\n","protected":false},"author":1,"featured_media":3678,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[54],"tags":[2975,256],"class_list":["post-3679","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tv","tag-itv","tag-sky"],"yoast_head":"\nSky\u2019s ITV Deal Gives U.K. Producers Hope But U.S. TV Distribution Could See Adverse Ripple Effect - Relocation Observer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/relocationobserver.com\/?p=3679\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sky\u2019s ITV Deal Gives U.K. Producers Hope But U.S. TV Distribution Could See Adverse Ripple Effect - 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