ITV Cuts $40 Million in Spending as Comcast-Owned Sky Deal Looms

ITV, the British broadcaster, is reducing its spending by around $40 million, which includes a $33 million cut in content spending, as it prepares for a $2.1 billion acquisition by Comcast-owned Sky. This move follows warnings that fourth-quarter ad revenue could drop by up to 10%, highlighting the challenges facing traditional television businesses amid shifting advertising spending towards streaming platforms.

ITV anticipates a 5% to 10% decline in fourth-quarter advertising revenue, compared to a 2% to 3% decline for the entire year, with advertising revenue already falling by 8% in the third quarter. The broadcaster identified £30 million in temporary savings, primarily through content spending reductions and other discretionary costs, but expects to retain its production division ITV Studios as a standalone supplier to U.S. networks and streaming services.

ITV's CEO, Carolyn McCall, pointed to economic uncertainty, increased competition from global streaming services, and new regulations restricting advertising on unhealthy food products as contributing factors to the weaker advertising market. Despite these challenges, ITV's digital platform, ITVX, saw a 29% increase in viewing hours and a 7% rise in digital revenue during the first nine months of 2026.

The proposed sale of ITV to Sky includes its broadcast channels, streaming platform, and advertising operations, and is subject to regulatory scrutiny due to potential impacts on media competition, editorial independence, and news coverage diversity. ITV expects the deal to close in the second half of 2027, with ITV Studios delivering programming to major U.S. networks and streaming services, including "Love Island US: Beyond the Villa" for Peacock, "Hell's Kitchen" for Fox, and "SuburraMaxima" for Netflix.