Sky’s proposed £1.6 billion takeover of ITV could pave the way for hit reality shows like I’m a Celebrity and Love Island to become pay-to-view, according to industry insiders, reports BritPanorama.
The prospective merger between the pay-TV giant and the free-to-air broadcaster aims to establish a UK-based streaming service to compete against major players like Netflix and Disney, with discussions potentially concluding within weeks.
However, sources in the industry indicate that competition authorities will need to review the arrangement, raising concerns about a possible reduction in the diversity of programming on ITV and the chance of the channel transitioning into part of Sky’s paid subscription model.
Dan Coatsworth, head of markets at AJ Bell, noted, “ITV’s channels are expected to remain free to watch until at least 2034 under public service broadcasting licence terms. Beyond that point is a big unknown.”
He added, “Sky is a subscription-led business, and its model is to collect money from membership packages and from advertising. The more money it can bring in, the greater the war chest to buy in content such as more sports, TV shows and films. That suggests it wouldn’t want a free broadcast service indefinitely.”
Would Sky/ITV green-light Mr Bates?
While ITV’s flagship shows are likely to continue airing, more niche dramas, such as the award-winning Mr Bates Vs The Post Office, which incurred substantial losses, may struggle to receive green lights. Coatsworth remarked, “It’s likely that Sky would continue to show the big hits made by ITV Studios, as scrapping the likes of Love Island and I’m a Celebrity could see viewers abandon ITV in their droves.” He predicted a shift towards more reruns and cheaper programming options instead of new commissions.
I’m a Celebrity remains a significant draw, boasting 10.8 million viewers for its last series finale, while Love Island caters to a youthful demographic, often reaching 13 million followers on social media. Tom Harrington from Enders Analysis highlighted that Sky could leverage ITV as an additional platform for its existing content, potentially diluting the volume of new programming from ITV.
Cross-pollination between the two entities might lead to original Sky dramas filling slots on ITV, with Harrington suggesting that shows like Gangs of London could become a complement to ITV’s offerings, potentially increasing advertising revenue more than distribution on a platform like Netflix.
Despite concerns, Sky representatives indicated there are no plans to alter ITV’s free-to-air status. “Sky is buying ITV because it is a public service broadcaster with a large reach. It would defeat the point to reduce its reach by making it a subscription channel,” a source stated.
ITV is expected to keep producing prime-time shows that appeal to a broader family audience, which is distinct from Sky’s subscriber demographic, according to well-placed insiders.
Fears over merged News
News teams at both Sky News and ITV News have expressed concerns about potential job losses arising from a merger, as the combined entity might pursue cost-cutting measures. “It could start with back-office savings but then you might see crews, footage and correspondents shared which means job losses,” remarked an industry figure.
The UK’s Culture Secretary Lisa Nandy and Ofcom may scrutinize whether the merger could lead to a reduction in news provision options for viewers. An ITV source clarified that the channel’s public service licence, effective until 2034, mandates the delivery of national and regional news while ensuring that at least 85% of peak programming is British-originated. Following 2034, Sky would have the opportunity to renegotiate these terms.
More sport and US imports
Insiders anticipate that Sky might utilize ITV as a promotional platform by airing select live football matches, assuming ITV maintains its free-to-view format. Viewers could also expect significant cross-promotion for Sky’s TV and broadband services on ITV.
With Comcast, Sky’s US parent company, possibly bringing high-demand American imports to ITV, insiders pointed toward upcoming releases, including adaptations from NBCUniversal. This week, NBCUniversal announced it would be transferring the popular game show Wordle to television, alongside film releases from Universal Pictures, such as Steven Spielberg’s Disclosure Day.
ITV confirmed ongoing discussions with Sky concerning the proposed sale of its TV broadcast and streaming operations. Reports suggest that under any potential agreement, ITV Studios would continue to produce major series like Love Island, I’m a Celebrity!, and The Voice, as well as longstanding staples like Coronation Street and Emmerdale.
Analysts assert that while ITV Studios is a significant content producer, it is unlikely to be included in the assets sold to Sky.
