Sky has secured one of British broadcasting's most valuable franchises. The company announced a £1.6 billion acquisition of ITV's media and entertainment divisions, with Sky boss Dana Strong confirming that flagship shows including I'm a Celebrity, Love Island, and The X Factor will remain free-to-air.
The deal hands Sky control of ITV Studios, the production powerhouse behind some of the UK's most-watched entertainment. ITV Studios generates around £1.9 billion in annual revenue and operates globally, producing content for broadcasters worldwide. The studio's reach extends far beyond the UK market, making this a significant play for Sky's content production capabilities.
Strong's commitment to keeping major ITV programming free addresses immediate concerns from UK regulators and viewers about potential paywalling. Keeping tentpole shows on free-to-air channels preserves ITV's traditional business model while Sky gains production muscle and catalog rights.
The move reflects shifting dynamics in British media. Traditional broadcasters face pressure from streaming giants and cord-cutting trends. By acquiring ITV's studios, Sky strengthens its content production pipeline while maintaining access to premium entertainment that drives advertising revenue across free channels.
ITV's core broadcasting operation remains separate from this deal. The acquisition focuses on the production and international expansion side, where ITV Studios operates in multiple territories. This positions Sky to compete more aggressively against BBC Studios and international production firms while keeping consumer-facing channels untouched.
The transaction requires regulatory approval from UK authorities, who will scrutinize whether the deal reduces competition in British broadcasting. Sky's existing dominance in pay-TV and broadband adds complexity to the review process. Strong's statement about free-to-air programming appears designed to smooth that approval path.