Sky, which is currently part of Comcast Corporation, has announced an agreement to acquire the ITV Media and Entertainment business from ITV plc for £1.6 billion. The deal will comprise £1.2 billion in cash, the transfer of the Love Productions business to ITV, and up to £0.2 billion in earn outs. The deal is subject to regulatory approval.

Sky has also agreed to enter into a £2.1 billion content supply agreement with ITV Studios over five years on completion of the deal. This will not count towards independent production quotas for ITV.

The ITV channels and ITVX will remain free to view, with all public service broadcasting commitments continuing in full, including regional news, under the terms of the Channel 3 licences until 2034, which Sky is acquiring as part of the transaction. ITV News and Sky News will remain distinct editorial voices.

Sky says it expects to save up to £200 million a year in cost savings by the end of the third year, largely through efficiencies in marketing, technology, and non-UK content.

Together, Sky and ITV Media & Entertainment will combine free-to-air broadcasting, advertising-funded streaming and subscription television together with the wider portfolio of Sky broadband, mobile and business services.

Sky says that the combined business will deliver more sport free-to-air on ITV services than ever before, while enhancing streaming through improved technology, better discovery and a more seamless viewing experience.

Combined with Sky, the business would account for around 20% of all in-home viewing in the UK, second to the BBC and ahead of YouTube.

Dana Strong, the chief executive of Sky Group, described it as “a defining moment for British media and an opportunity to build a stronger future for two of the UK’s most loved and trusted brands.”

Carolyn McCall, the chief executive of ITV, said she is “confident that Sky will be a strong and responsible custodian of ITV M&E, building on its heritage while investing in its future and safeguarding the qualities that make ITV so valued by viewers, advertisers and the UK’s creative industries.”

It effectively ends the vertical integration of ITV as a programme provider and broadcaster. The separation of the ITV broadcasting and online video business from the programme production business makes a future acquisition of ITV Studios cleaner, whether by Sky as part of NBCUniversal or by another organisation.

The ITV channels will give Sky a shop window in which to show free-to-view sport and other premium programming to promote its subscription business. ITVX will give Sky a mass market free online video proposition alongside existing Sky and NOW subscription products.

While the public service commitment is retained until at least 2034, the remaining question is what happens after that. ITV has been among those suggesting traditional terrestrial television transmissions should be switched off around that date.

There is also a question about the continuing commitment of ITV to the Freely platform. It would give Sky a seat at the table at Everyone TV, which is currently jointly owned by the BBC, ITV, Channel 4, and Channel 5. Sky already has competing online platforms in Sky Glass and Sky Stream, as well as its existing satellite service.

The commitments may preserve public service broadcasting obligations for Channel 3 until 2034, but they do not preserve the previous structure of public service broadcasting. ITV would become part of the wider Sky platform, changing the balance of power in British television long before the licence obligations expire.

The second-order effects fall on Channel 4 and Channel 5, both of which may face stronger competition for viewers and advertising. Regulators will almost certainly examine whether advertisers still have sufficient choice and bargaining power.

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Vizio OS is expected to overtake Roku in television sales in North America. The competitive landscape of television operating systems is shifting from manufacturers to a broader competition involving retail, media, and technology companies. Sales of televisions alone no longer generate significant profits, while competition from Chinese manufacturers is driving down prices and steadily capturing market share.

Competition in the television operating system market was previously led by Google with Android TV, Samsung with Tizen, and LG with webOS. They are now being joined by companies from the retail and media market that are buying their way in.

Research from Omdia suggests that market share trends for Vizio OS and Roku will be critical leading indicators for the competitive dynamics in the smart television ecosystem.

Walmart acquired smart television manufacturer Vizio for $2.3 billion in 2024, establishing it as a wholly owned subsidiary of the retail giant, withdrawing it from all third-party retail channels.

As Ken Park of Omdia observes, this was a case of a retailer using consumer data to create new advertising revenue streams and e-commerce opportunities. Walmart could use purchase data to identify a consumer, connect that insight with viewing behaviour, and serve targeted advertising. That could increase sales at Walmart and provide sales data to support other advertising campaigns.

Walmart also recently announced the acquisition of television advertising technology company Vibe.co for around $1.4 billion.

Meanwhile, the recently announced acquisition of Roku by Fox was valued at $22 billion, more than nine times that of Vizio by Walmart.

Interestingly, Omdia forecasts that Vizio will increase its share of sales in North America at the expense of Roku, while FireTV is expected to gain further share.

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BBC online material will come under the direct regulation of Ofcom under proposals for a new code. It follows an extension of regulatory powers from the government from its mid-term review of the BBC Charter, which is now subject to further review. Ofcom will also have increased oversight of how complaints to the BBC are handled.

Ofcom has been regulating content standards for the BBC television, radio and on-demand services under the Broadcasting Code since 2017. That is now being extended to online material, where it could previously only provide a non-binding “opinion” on whether the BBC had observed its own editorial guidelines. Now, Ofcom will have the powers to regulate BBC online material fully.

The proposed code will apply to material provided as part of the public service by the BBC online and intended for users in the United Kingdom. It covers text, still or moving images, and sound, and includes material on BBC news and sports websites, BBC educational and learning resources, BBC apps on smartphones, television, or other devices, and any BBC social media account.

Not in scope are user generated content, message boards and comment sections, or the personal social media accounts of BBC employees.

The draft code covers protections for those under 18, rules relating to harm and offence, crime, disorder, hatred, and abuse, religion, due impartiality and accuracy, and rules around elections and referendums. These broadly match the existing Broadcasting Code.

Notably, in the absence of a schedule ‘watershed’, measures to protect those aged under 18 include age ratings or other classification systems, content warnings, or parental controls, restricted mode settings, child accounts, pin protection, and age assurance.

The code is out for consultation, with final provisions expected later in the year, when there will be guidance explaining how Ofcom expects the BBC to apply the new rules in practice.

www.ofcom.org.uk