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ITV is currently engaging in preliminary discussions with Sky about selling its broadcasting business for £1.6bn, potentially reshaping the television landscape in the UK. The talks specifically revolve around ITV’s Media and Entertainment division, encompassing free-to-air TV channels and the ITV X streaming service. This move comes at a time when the television industry faces strong competition from streaming giants like Netflix and Disney+.
Notably, the potential deal with Sky, owned by Comcast, would exclude ITV’s production arm, ITV Studios, responsible for hit shows like Love Island and I’m a Celebrity… Get Me Out of Here. Comcast, known for owning Universal Studios, acquired Sky from Rupert Murdoch in 2018 and is a significant player in the US media scene. Insights from media analyst Ian Whittaker suggest that a merger between Sky and ITV could lead to over 70% market dominance in the UK TV advertising industry, a scenario typically scrutinized by regulators.
Television executive and producer Sir Peter Bazalgette, former chair of ITV until 2022, expressed support for the potential deal, citing the mounting pressure from streaming services. He emphasized the need for regulators to redefine the advertising market to include tech giants like Google and Meta, rather than just traditional TV advertisers. Whittaker highlighted the growing importance of streaming for broadcasters, despite plateauing penetration rates in the UK, especially as platforms like YouTube TV offer live sports and news coverage.
A recent report from media regulator Ofcom indicated that YouTube has become the UK’s second most-watched media service after the BBC, underscoring the shifting landscape of viewership preferences. With major sporting events possibly transitioning to streaming platforms like UEFA, traditional broadcasters are recognizing the need to adapt. The news of potential takeover talks sparked an 18% surge in ITV’s share price, signaling investor optimism about the company’s future direction
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