The British media market is facing a radical change: Sky is taking over the media and entertainment business from ITV. The deal, worth around 2.1 billion US dollars, has been officially confirmed but is still subject to approval by the UK competition authority.

As part of the transaction, Sky will in future consolidate large parts of its traditional television, pay-TV and streaming operations. ITV will contribute, in particular, its free-to-air television business and the ITVX streaming platform to the new structure. The production division ITV Studios remains outside the deal, however, and continues to operate independently.

The merger is part of a wider trend of consolidation in the European media sector. Together, Sky and ITV account for around 18 per cent of TV viewing time in the UK, putting them on a similar scale to major digital platforms.

The US media group is also behind the transaction Comcast, which Sky has owned since 2018. The integration is to be incorporated into a newly structured international media and streaming unit.

Whether the deal can actually go ahead now depends on the review by the UK competition authorities. If it is approved, a new key player will emerge in the UK media and streaming market, one that will integrate traditional TV structures more closely with digital services.