Sky and ITV merger to turn ITVX into a sports streaming powerhouse
Sky has reached an agreement to buy ITV Media & Entertainment in a deal worth up to £1.6bn.
Subject to regulatory approval, the group would combine free-to-air broadcasting, advertising-funded streaming and subscription television, as well as Sky’s broadband, mobile and business services operations.
“This is 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,” said Dana Strong, Sky Group CEO.
Sky, owned by Comcast, said the deal will create a UK-focused media business fit to compete with global streaming platforms such as Netflix and YouTube. An integral part of this strategy looks to be ITV’s streaming platform ITVX.
The company said it will invest in improving ITVX through streaming technology and content discovery.
According to the announcement, ITV reaches around 40 million viewers each week and boasts around 16.5 million monthly digital users. When added to Sky’s audience, the business would account for around 20% of all in-home viewing in the UK, putting it ahead of YouTube and just behind the BBC.
“ITV has successfully evolved in a rapidly changing media landscape – launching and scaling ITVX and developing ITV Studios into a major force in the global content market,” said Carolyn McCall, CEO of ITV plc.
“This transaction builds on that momentum to deliver clear, tangible value for shareholders.”
Deal structure and commitments
The acquisition will see Sky pay around £1.2bn in cash, plus the transfer of Love Productions and a performance-related earn-out of up to £0.2bn, subject to regulatory approval.
While ITV Studios is not included in the deal, Sky has agreed a £2.1bn, five-year content supply arrangement with the production arm.
A condition of the agreement is not to alter ITV’s public service broadcasting obligations, which include regional and national programming requirements under the Channel 3 licence. Sky has revealed plans to keep this in place through to 2034, with the broadcaster set to take on the licence as part of the deal.
Free-to-air access will also be untouched, with ITV channels and ITVX to be available without subscription.
The broadcaster expects the combined business to deliver around £200m in annual cost synergies within three years of completion, stating that the savings are expected to be seen from efficiencies across marketing, technology infrastructure and non-UK content spend.
How the Sky–ITV deal will impact sport
Sky has launched a website covering the deal and addressing potential questions, including a commitment to deliver “more free-to-air sport than ever before.”
While premium rights such as the Premier League and Formula 1 are unlikely to move away from existing pay-TV and broadcast arrangements, the deal could create an opportunity for selective free-to-air distribution of major events and highlights packages across ITV’s platforms.
The pledge comes at a time when access to live sport in the UK is under increasing scrutiny, as more fixtures move behind subscription paywalls and streaming platforms.
Earlier this year, UK viewers were unable to watch the UEFA Champions League final for free for the first time since 1992, after Warner Bros. Discovery placed Arsenal’s match against Paris Saint-Germain exclusively on TNT Sports and its streaming services.
Soon after, the UK government proposed extending protections to include on-demand and catch-up rights for major sporting events such as the World Cup, Olympics and Wimbledon, ensuring free-to-air access covers more than just live coverage.
Broadcasters have used limited free-to-air exposure as a growth strategy rather than a full rights shift. Sky has previously made selected fixtures from the ICC Women’s T20 World Cup available free-to-air via Sky Mix, the Sky Sports app and YouTube, including the tournament opener, final and selected England matches.
If approved, ITVX is likely to become the destination for distributing any free-to-air or partially free sports content across the combined group.
