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ITV ad slump deepens amid £1.6bn Sky deal probe
ITV has reported a steeper than forecast fall in advertising revenue and plans £30m in additional savings, as economic uncertainty, streaming competition and advertising restrictions weigh on demand. The downturn adds pressure as the government investigates Sky’s proposed £1.6bn purchase of ITV’s broadcasting and streaming operations, citing concerns about media plurality and editorial independence.
Advertising revenue fell 8% in the third quarter, compared with ITV’s previous forecast of a 5% decline. The company expects a 5% to 10% fall in the final quarter and a 2% to 3% decline for the full year, with £25m to be cut from fourth-quarter programming and £5m from discretionary spending. ITV says the sale remains on track to complete in the second half of 2027; regulators must report by 27 January on the deal, which could give the combined broadcasters around 86% of Britain’s linear news and current affairs viewing.
In short
- ITV’s third-quarter advertising revenue fell 8%.
- The broadcaster plans £30m in additional savings.
- Regulators are investigating Sky’s proposed £1.6bn acquisition.
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The case for
Supporters could argue that the deal would give ITV’s broadcasting and streaming operations access to Sky’s scale and investment, helping them compete as audiences and advertising shift towards streaming. With advertising revenue falling faster than forecast, combining resources could support continued investment in programmes and services while making the business more resilient.
The case against
Critics could argue that combining two major broadcasters could concentrate influence over news and current affairs, reducing media plurality and risking editorial independence. The reported 86% share of linear news and current affairs viewing makes those concerns significant, and they may outweigh potential efficiency gains if fewer independent providers shape what audiences see.
Explained simply
ITV is a British broadcaster whose business includes television channels and streaming services. It earns money from advertising, so companies’ willingness to spend on adverts affects its revenue. Economic uncertainty, competition from streaming services and rules restricting some adverts can all affect that spending.
Sky is a broadcaster and streaming company. Its proposed £1.6bn purchase covers ITV’s broadcasting and streaming operations, and the government has asked regulators to examine whether the deal could reduce the range of media voices or affect editorial independence. The review matters because the combined companies could account for a large share of viewing of news and current affairs on traditional television.
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