Comcast Plans to Acquire ITV's Broadcasting Arm and Streaming Service in Potential £1.6bn Deal
Comcast is in advanced talks to purchase ITV's broadcasting arm and streaming service in a deal potentially worth £1.6bn, which would end ITV's 70-year independence. If completed, the takeover would bring both Sky News and ITV News under Comcast's control, with Comcast holding 40% of ITN. This raises concerns regarding the future of news output across ITV, Channel 4, and Channel 5.
Sky has guaranteed funding for Sky News for a decade with annual inflation-linked increases. However, questions remain about continued funding as this commitment approaches expiry. The Sky CEO has assured that funding would continue regardless of ongoing Comcast support.
Any acquisition would likely include guarantees that Ofcom's Public Service Broadcasting (PSB) licence conditions, which for ITV run until 2034, will not be varied. Additionally, ITV has a five-year news output deal with ITN, helping to preserve the status quo in news provision.
Regulatory scrutiny is expected from the Competition and Markets Authority (CMA), which may broaden the definition of the advertising market to include platforms like YouTube and Meta. The government is pushing regulators to adopt a pro-business stance, possibly leading to divestment of third-party ad sales to reduce dominance.
A combined Sky-ITV entity could command approximately 73% of traditional TV advertising spend and streaming ad sales, making Channel 4 relatively smaller in TV and digital advertising markets.
Ofcom has warned that PSBs face risks of endangerment as audiences increasingly migrate to US platforms. YouTube has overtaken ITV as the UK's second most-watched service, while Netflix and YouTube remain the top destinations for viewers aged four to fifteen.
Some stakeholders see benefits in preserving UK-led mass media if the deal strengthens ITV. However, concerns remain about potential influence over news output, emphasizing the need for closer collaboration among PSBs and the BBC. The central concern revolves around the future provision of news.
