The UK’s television industry is entering a period of rapid change. Sky’s £1.6bn acquisition of ITV’s Media & Entertainment business will create a commercial powerhouse, combining free-to-air broadcasting, subscription television and streaming to strengthen its position as competition from global platforms intensifies.
Competition extends well beyond traditional television. Ofcom’s Media Nations report shows that 26% of UK viewers choose Netflix first when deciding what to watch, just ahead of the BBC on 25%. Meanwhile, YouTube viewing on television screens has doubled over four years. Across all video viewing, the BBC holds an 18% share, followed by YouTube (15%), ITV (11%) and Netflix (9%).
For decades, broadcasters made money by gathering large audiences for scheduled programmes and selling advertising around those viewing habits. Live sport, entertainment and national events still attract mass audiences, but viewers now spread their time across streaming services, connected TVs, online platforms and social media throughout the day.
Beyond broadcasting
Broadcasters have expanded beyond programme commissioning into streaming, advertising technology, customer data and digital products. The goal is no longer simply filling schedules, but staying relevant wherever audiences choose to watch.
The structure of the Sky–ITV deal reflects that shift. Sky is acquiring ITV’s Media & Entertainment business, while ITV Studios will remain an independent production company. Great content remains essential, but it is no longer enough on its own. As Richard Broughton, Executive Director at Ampere Analysis, explains, “Fundamentally, broadcasters are content businesses. Technology supports reaching and engaging consumers, and audience data underpins the advertising model, but it is content, combined with the scale to attract large audiences, that will determine success over the next few years.”
Meanwhile, Paolo Pescatore, founder of PP Foresight, believes broadcasters should avoid trying to match global streaming platforms on every front. Instead, “Broadcasters should retrench and focus on what they do best: creating and producing outstanding content,” he says. Partnerships with streaming platforms through co-productions and distribution agreements may ultimately prove more effective than trying to replicate every aspect of the streaming model.
Advertising reflects the same evolution. As ad spend shifts towards digital video, broadcasters are pairing premium programming with first-party audience data to offer advertisers greater precision and measurable engagement. ITV’s FIFA World Cup coverage attracted more than 200 brands, demonstrating the commercial value of combining trusted content with rich audience insight.
The economics of attention
Broadcasters once competed for audiences at a particular time. Today, they are competing to become one of the few streaming services consumers use regularly. As Broughton observes, “Consumers will typically engage with only a small handful of different streaming products. Any given country will not support hundreds of separate streamers in the way it once supported broadcast channels.” In an app-based television market, scale is no longer simply an advantage—it is becoming a prerequisite for remaining visible.
A successful programme is no longer the end result; it is the beginning of a longer relationship. On-demand viewing, targeted advertising, licensing and live events all extend that connection while creating new revenue streams. Every interaction generates data that improves advertising, shapes future investment and strengthens customer loyalty.
Scale has become the commercial foundation of that strategy. Larger audiences generate more data, strengthen advertising propositions and provide greater resources for original programming. As Broughton puts it, “Consumers don’t have the time or inclination to work through 15 different apps to figure out what to watch.” The broadcasters that succeed will be those with the scale to invest in compelling content, secure prominent distribution and remain among the first destinations viewers choose.
Broadcasters once fought for the biggest audience on the night. Now, they compete for a permanent place in viewers’ lives.
The proposed Sky–ITV deal may reshape the UK’s broadcasting landscape, but the bigger story is the evolution of the business model itself. Consolidation may strengthen broadcasters’ competitive position, but as Pescatore emphasizes, “Content remains the real source of value.” In an era where attention is scarce, competitive advantage belongs to those that can turn casual viewers into loyal audiences.
The UK's television industry is entering a period of rapid change. Sky's £1.6bn acquisition of ITV's Media & Entertainment business will create a commercial powerhouse, combining free-to-air broadcasting, subscription television and streaming to strengthen its position as competition from global platforms intensifies.
Competition extends well beyond traditional television. Ofcom's Media Nations report shows that 26% of UK viewers choose Netflix first when deciding what to watch, just ahead of the BBC on 25%. Meanwhile, YouTube viewing on television screens has doubled over four years. Across all video viewing, the BBC holds an 18% share, followed by YouTube (15%), ITV (11%) and Netflix (9%).
For decades, broadcasters made money by gathering large audiences for scheduled programmes and selling advertising around those viewing habits. Live sport, entertainment and national events still attract mass audiences, but viewers now spread their time across streaming services, connected TVs, online platforms and social media throughout the day.
