Sky to acquire ITV broadcast and streaming assets for £1.6 billion

The deal signals a defensive consolidation of the UK's traditional broadcast infrastructure to counter the scale of global streamers. By absorbing ITVX, Sky secures the dominant domestic ad-supported streaming (BVOD) service, which recently surpassed 3.3 billion annual streams. For the broader ecosystem, this creates a formidable first-party data and advertising block that could reshape how local inventory is traded against YouTube and Netflix. The strategy preserves ITV Studios as a standalone 'arms dealer' for global content while offloading the high-maintenance costs of domestic linear distribution. Industry observers should watch for the CMA's definition of the 'advertising market'—accepting a broad digital-inclusive view would set a massive precedent for future media mergers.

The acquisition follows a period of record-breaking performance for the ITVX platform. According to ITV corporate reports from March and June 2026, ITVX achieved its highest monthly total of 383 million streams in January 2026 and surpassed the 10 billion stream milestone shortly thereafter. This momentum was driven largely by reality programming like 'Love Island' and a specific 'Drama Drop Sundays' acquisition strategy. Despite this volume growth, profit challenges remained; per CSI Magazine in July 2025, ITV's total H1 profit had previously fallen from £330 million to £67 million, prompting the company to pivot toward a 'leaner, more digital' structure by reallocating spend from the ITVX Premium ad-free tier to the ad-supported model.

From a regulatory standpoint, the CMA's current consultation (closing August 6, 2026) is the critical first hurdle. Per City AM reporting in July 2026, the core of the legal defense rests on market definition. If the CMA defines the market narrowly as traditional television advertising, the combined Sky-ITV entity would hold a 70% share, making approval unlikely. However, the companies are emphasizing a broader 20% share of 'total UK advertising spend' including social media giants. This merger mirrors broader industry distress; per The Irish Times (July 2026), less than 25% of in-home viewing among 16-24-year-olds in the UK is now spent on broadcaster-led content, necessitating the 'bulking up' against US-based tech competitors.