ITV has confirmed what its £1.6 billion deal with Sky means for its beloved soaps, Coronation Street and Emmerdale. On Monday, July 6, 2026, ITV announced it has agreed to sell its media and entertainment arm to Sky for up to £1.6 billion, following months of negotiations. The companies stated the deal will combine the division with Sky to create a major competitor to global streaming giants.
Details of the Deal
The sale includes ITV’s terrestrial TV channels and streaming service ITVX. However, it does not include its production arm, ITV Studios, which produces shows like I’m A Celebrity and Mr Bates Vs The Post Office. ITV Studios will become a "pure-play global content business" with shares listed on the London Stock Exchange after the sale, and it will have a long-term agreement to supply content to the newly combined Sky and ITV. This includes popular programmes such as Love Island, I’m A Celebrity, Coronation Street, and Emmerdale.
Sky has committed to spending at least £2.1 billion on the partnership from 2028 to 2032. Under the terms, Sky will pay £1.2 billion for the broadcasting unit and sell its Love Productions business to ITV, which makes shows including The Great British Bake Off and The Piano, valued at £200 million. ITV may also receive an additional payment of up to £200 million in two years, subject to its advertising sales performance.
Impact on Viewers and the Industry
The firms said the combined business will have a larger content budget, resources, and technology to better compete with global streaming platforms in the UK. Sky is owned by US media giant Comcast, which is in the process of splitting into two companies, with Sky’s European business becoming part of NBCUniversal.
Dana Strong, Sky’s group chief executive, said: “Bringing Sky and ITV Media & Entertainment together combines the very best of free-to-air television, pay TV and streaming, ensuring viewers across the UK continue to enjoy outstanding British programming in a rapidly changing world. ITV will remain a public service broadcaster at the heart of British life, and we’re excited about the future we can build together.”
Andrew Cosslett, chairman of ITV, commented: "At a time of rapid change in the industry, it is right that we now secure ITV’s crucial role as a public service broadcaster" and that the combined business will “create a UK champion with the scale and resources to better compete with global streaming platforms.”
Broader Context
British broadcasters including ITV, BBC, and Channel 4 have developed their streaming platforms to compete with US giants like Netflix, Amazon, and Disney, which have transformed television viewing habits worldwide. This deal represents a significant step in that ongoing transformation.
