UK Culture Secretary Signals Possible Block on Sky-ITV Media Deal
Culture Secretary Lisa Nandy has told Sky and ITV she is “minded to intervene” in their proposed £1.6bn tie-up, raising the prospect of a formal competition and media-plurality probe before the deal for Sky to acquire ITV’s media and entertainment arm can proceed.
Announced in July, the agreement would see Sky take over ITV’s broadcasting operations — its free-to-air channels and the ITV X streaming service — while leaving ITV Studios, maker of shows like Love Island and I’m a Celebrity… Get Me Out of Here, untouched. Executives on both sides have argued the combination would widen Sky’s reach and give the merged business a better chance of competing with streaming rivals such as Netflix.
Nandy, however, has flagged “reasonable grounds” for concern that the merger could narrow the range of viewpoints available to British audiences and weaken free expression across the media landscape. In a letter to the two companies, she said she was considering a public interest intervention notice (PIIN) that would direct the Competition and Markets Authority and Ofcom to formally investigate.
A combined slice of the news market
Her letter noted that Sky News and ITV News together already account for 26% of all viewing of television news on linear channels, and warned that — while the BBC and Channel 4 would remain available — the BBC and a merged Sky/ITV would between them control 86% of the linear TV news audience. She argued the impact could fall hardest on the North of England, the UK’s other nations, and lower socio-economic groups, who rely more heavily on broadcast news than other audiences.
Sky and ITV have until 20 October to respond formally to her concerns. Sky said it would “carefully consider” the letter and “engage constructively” with any review, adding: “We remain confident that bringing Sky and ITV’s media and entertainment business together will create a stronger British media.” A Sky spokesperson pointed to commitments already offered: “We have already made clear commitments to protect ITV’s identity, its free-to-air services and public service broadcasting obligations, and to ensure ITV News and Sky News remain distinct editorial voices.”
ITV welcomed the development too, saying the letter was expected and that the deal remained important for its future. A spokesperson said: “We welcome the publication of the secretary of state’s ‘minded to’ issue a public interest intervention notice letter as was expected and look forward to fully co-operating in the process. This is another important milestone in the regulatory review process towards creating a UK player with the scale and resources to better compete with global streaming platforms, benefiting viewers, advertisers and the UK creative industries.”
Notably, Nandy’s approach would rest on a public interest ground that does not yet exist in law, since current rules do not address how mergers affect streaming or on-demand services. She said she would need to introduce legislation to cover that gap: “If I decide to intervene on the basis of this new public interest consideration, I will bring forward legislation… to extend the application of the public interest consideration relating to the availability of a wide range of broadcasting to on-demand programmes.”
Source: BBC News