The proposed ITV–Sky merger would represent the most significant structural change in UK television advertising for decades. By bringing together the UK's two largest commercial broadcasters and sales houses, it would create a scaled media owner with unprecedented reach, data capabilities and trading influence. The merger presents both opportunities and challenges, making an independent agency position an even greater advantage in a market where flexibility, objectivity and buying agility will be increasingly important.
A combined ITV and Sky business would strengthen the UK's ability to compete for advertising investment currently flowing to global technology platforms. The combination of ITVX, Planet V, AdSmart and Sky's first-party data assets could create the UK's most sophisticated premium video proposition, offering advertisers greater scale, addressability & enhanced measurement capabilities across high-quality content environments.
However, the loss of competition between the two largest TV sales houses would fundamentally change the commercial dynamics of the market. The advertising market has historically benefited from competition between ITV and Sky to drive value, innovation and commercial flexibility. A merged entity would hold significantly greater influence across premium video, entertainment and sport, increasing scrutiny around pricing, conditional selling, share commitments and any future evolution of CRR-style protections.
The merger also reflects a broader trend towards the globalisation of UK media ownership. With Sky owned by Comcast, there is a risk that commercial and strategic priorities are increasingly shaped by the objectives of a global US media giant rather than the needs of UK advertisers. Should the deal be cleared by CMA regulators, local market accountability and UK advertiser interests must remain protected.
It will be important that any future trading model preserves transparency across the industry, advertiser choice and fair market competition while supporting the long-term sustainability of UK broadcasting.
What this could mean for the UK media market: The merger would significantly reshape the wider competitive landscape. Channel 4 would become the only remaining scaled alternative broadcaster AV proposition, increasing its strategic importance for advertisers seeking diversity of supply and maintaining competitive tension in the market. Further consolidation across broadcasters, streaming platforms and production businesses could also follow.
The industry will need to ensure that any combined proposition is underpinned by transparent, independently validated measurement and delivers clear, demonstrable value for advertisers.
Ultimately, while the merger could strengthen the UK's broadcasting sector and improve its ability to compete globally, it raises important questions around market concentration, pricing power, trading flexibility and accountability that regulators, agencies and advertisers will need to help shape over the next 12–18 months.
Commercial implications for brands: While the merger is expected to have significant long-term implications for market structure, we don’t expect any immediate impact on how clients transact with either ITV or Sky, as significant changes to sales structures or trading arrangements are unlikely until at least the end of 2027.
the7stars will continue to engage with both organisations as the process develops, with further clarity expected over the coming months on the commercial, regulatory and trading implications for our agency and advertisers.
