Sky’s £1.6 billion acquisition of ITV is yet another sign of the “seismic consolidation” taking place between media companies trying to compete with the major streaming platforms, said Deadline.
But with its public service broadcast contract set to expire in 2034, and no guarantee this will continue, ITV’s deal could change the complexion of British commercial broadcasting.
‘Media landscape may look very different’ Sky, and its US owner Comcast, will now have access to the 21 million households reached by ITV, as well as a greater share of advertising spend at a time when broadcasters are “facing an uncertain future”, said the Financial Times.
Sky and ITV are required by law to continue free-to-air service until at least 2034. Sky will also have to commission a proportion of programmes made outside London, and honour the contract for ITN’s news bulletins for ITV until 2031.
As a public service broadcaster, Sky could also bid for “‘listed’ crown jewel tournaments” – shown on free-to-air channels – such as the Olympics and the Grand National, said the BBC’s Katie Razzall. Sky is also guaranteed a “prominent position” on TV home screens, and in an “ever more competitive world, prominence matters”. But in eight years’ time, the “media landscape may look very different”.
‘Last stand’ against streamers This long-rumoured deal unites the UK’s two largest commercial broadcasters in an attempt to “bulk up” against the streaming giants, said the FT. The British media industry has experienced a “period of radical change” in the last 20 years, and companies such as YouTube and Netflix pose an “existential threat”.
No longer will there be a binary “broadcast versus streaming” battle, said Forbes, but a series of “connected ecosystems that combine premium content, intelligent data and measurable commercial outcomes”.
This deal looks “less like a monopoly and more like a last stand”, said The Drum. For years, the British media market maintained a “stable” competition between its three biggest players: BBC, ITV and Channel 4. But with the arrival of “better-capitalised” generalist streamers like Netflix, YouTube and Disney+, not only was the structure disrupted between the old broadcasters, suddenly “they weren’t even one of the three” leaders.
|