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The possibility of the American media conglomerate acquiring ITV has prompted concerns about the impact on British public service broadcasting, a fact that the broadcaster's new chief executive, moving from a key role at Sky, will be acutely aware of.

Sky’s ad sales head, Priya Dogra, will now be looked to to lead the charge to block her ex-company's buyout proposal to defend Channel 4.

The envisaged combination of Sky and ITV’s terrestrial and streaming assets would leave Channel 4 a much smaller player in the realm of TV and digital ad sales, fueling debate of the need to re-examine some form of alliance with the BBC for future viability.

Primary Concern: The Future of News

However, it is the possible consequences on the future of news provision that are causing the most immediate alarm for many within the television industry.

The shock revelation last month that Comcast, which holds assets including Universal Studios and purchased Rupert Murdoch’s Sky for £30bn in 2018, is a logical business move. Traditional broadcasters are facing a long-term existential threat as audiences and revenues continue to decisively move to global digital players such as Meta, Google, Amazon, and Netflix.

“Comcast’s bid for ITV is causing unease among media watchers, with specific worry for news provision.”

However, the potential £1.6bn acquisition of ITV’s television business and streaming service, which would end 70 years of independence, is full of regulatory, political, and competition concerns.

Immediately, Comcast would control Sky News and ITV News—including its far-reaching regional news operation—and become the majority shareholder in ITN, which produces news for ITV, Channel 4, and Channel 5.

While Comcast’s 40% stake in ITN would not be a controlling stake—other shareholders include the owner of the Daily Mail, Thomson Reuters, and Informa—it would still be significantly influential in the news output of most of the main commercial broadcasters.

“If a deal is completed, the fate of ITN is an critical one that will become a priority politically,” says one senior TV executive. “Effectively, they will be involved in the news output of all the biggest non-BBC channels.”

Investment Promises and Regulatory Scrutiny

Comcast guaranteed to keep funding Sky News for a decade, raising its funding annually in line with inflation, as part of its 2018 takeover of Sky. As that obligation draws closer to expiring, concerns have been raised about whether the US company will continue to wholly support Sky News, which has an annual budget of £100m but is thought to lose money of as much as £80m.

It is thought that any deal to buy ITV would include pledges not to seek permission from media regulator Ofcom to change the conditions of its public service broadcast licence, which includes commitments to national and regional news.

“There are clearly questions about media diversity,” says Stewart Puvis, a former ITN chief executive. “Theoretically, Comcast could, say, merge Sky and ITV News and use its position as a 40% shareholder in ITN to gain influence... I would hope Comcast realise ways of solving these problems.”

An Endangered Model

British TV executives have previously highlighted the risk posed to the UK’s system of public service broadcasters (PSBs) by large parts of the industry being snapped up by US corporations.

Recently, Ofcom published a report warning that public service television, such as news provision and UK-focused content, risks becoming an “threatened entity” as viewers migrate to US online platforms and streamers.

The watchdog also revealed data showing that YouTube had exceeded ITV to become the UK’s second most-watched media service, behind only the BBC, with it and Netflix now the two most popular first TV destinations among young people.

A Call for Collaboration

There are those who believe that a Sky takeover of ITV, against the backdrop of the viewer shift to mostly US digital companies, heralds the need for closer collaboration between the UK’s biggest broadcasters.

“The UK requires and deserves its own part of mass media which isn’t US controlled,” says a second broadcasting executive. “It’s a vital strategic need. I think the government needs to work out how the boards of the PSBs have a new part to their remits that obligates them to collaborate.”

Given that advertisers follow eyeballs, a combination of Sky and ITV could create a British TV and streaming powerhouse, with the two companies’ sales houses controlling a dominant share of total ad spend on traditional TV and broadcasters’ streaming services.

Competition Hurdles

Any deal will prompt an investigation by the UK competition watchdog. Sky is hoping the regulator will expand the view of the ad market to include the impact of giants like YouTube and Facebook.

“I think it will get approved,” says Alex DeGroote, a media analyst. “Comcast will do everything it can to say it will maintain the PSB status quo... But you don’t buy to ultimately keep everything the same. ITV plus Sky would give them a hugely dominant position in the TV ad market.”

Funding Problems of Channel 4 and the BBC

Channel 4, which relies on advertising for the vast majority of its income, now faces a weakened BBC as a potential partner and a formidable commercial threat from a combined Sky-ITV.

“We may at some point end up in that situation because of the deep cumulative cuts to the BBC’s funding and because Channel 4, too, has a core budgetary challenge,” says Patrick Barwise, an emeritus professor at London Business School. “Channel 4 has repeatedly outperformed forecasts, but that is just delaying the inevitable. It’s now beginning to reach its limits.”

The continuing debate emphasises a wider dilemma for British media: how to safeguard a distinctive voice and a diverse public service ecosystem in an ever more globalised and digitally dominated landscape.