Sky’s ITV takeover faces a new test over streaming and programme choice

Sky’s proposed £1.6 billion acquisition of ITV’s broadcasting and streaming business faces a new regulatory hurdle after Culture Secretary Lisa Nandy said the Government is minded to intervene.

The announcement does not mean the deal has been blocked. Sky and ITV have until 9am on 20 October to respond to the Government’s concerns before a final decision is made on whether to formally refer the proposed acquisition for further investigation.

The review raises two important issues: whether the deal could affect the range of voices in British news media, and whether viewers could lose out if ownership becomes more concentrated across television and streaming.

Why is the Government concerned about ITVX?

The proposed deal would give Sky control of ITV’s television channels and streaming service ITVX, subject to regulatory approval. ITV Studios, which produces programmes for ITV and other broadcasters, is excluded from the sale.

One of the Government’s concerns goes beyond traditional television. Existing legislation already considers whether broadcast audiences have access to a wide range of high-quality programmes appealing to different tastes and interests. However, the rules do not currently cover the impact of a merger on the range of programmes available through on-demand platforms in the same way.

Lisa Nandy has indicated that she may seek to extend this public-interest consideration to streaming services. That could require new legislation, making the proposed Sky and ITV transaction a potential test of how media mergers are assessed as viewing habits change.

The issue is not simply how many channels a company owns. It is also whether audiences continue to have access to a broad range of programming when they increasingly choose what to watch through streaming platforms.

What about news and media plurality?

The Government is also concerned about the potential impact on freedom of expression and the range of views represented in British news media.

Sky already operates Sky News, while ITV provides national and regional news. The proposed acquisition would bring ITV’s broadcasting operation under the same ownership as Sky, prompting questions about how media influence and editorial independence would be protected.

Sky has said it will maintain ITV’s identity, free-to-air services and public service broadcasting obligations, and that ITV News and Sky News will remain distinct editorial voices. These are commitments made by Sky, while the Government’s review will consider the wider public-interest questions.

Will Coronation Street and Emmerdale be affected?

There has been no announcement that Coronation Street or Emmerdale will be cancelled, moved behind a paywall or have their schedules changed as a result of the proposed deal.

The distinction between ITV’s broadcasting operation and ITV Studios is important. The studios business is not included in the acquisition, although the wider transaction includes a long-term content agreement between Sky and ITV Studios.

Sky has also said ITV’s channels and ITVX will remain free-to-air if the deal completes. The proposed acquisition is still subject to regulatory scrutiny, however, so its final terms and outcome cannot yet be treated as settled.

For soap viewers, the current development is about the ownership of the broadcaster and the rules governing the media industry, rather than a confirmed change to their favourite programmes.

What happens next?

Sky and ITV must respond to the Government’s concerns by 20 October. If Lisa Nandy decides to intervene formally, Ofcom would assess the public-interest issues, while the Competition and Markets Authority would examine the merger and its potential effect on competition.

Further investigation could follow, but no final decision has been made. The proposed deal, announced in July, remains subject to regulatory approval.

The next step is therefore the companies’ response and the Government’s decision on whether to proceed with a formal intervention. Until then, claims that the takeover will definitely go ahead, be blocked or change what viewers can watch would go beyond the facts currently confirmed.