The National Union of Journalists (NUJ) has welcomed Culture Secretary Lisa Nandy’s announcement that she is “minded to intervene” in Sky’s proposed £1.6 billion takeover of ITV’s Media & Entertainment division, calling for a formal regulatory investigation into the deal.
Sky, which is owned by US media giant Comcast, agreed the £1.6 billion deal in July. The proposed acquisition would create the UK’s largest commercial broadcaster, raising concerns about media ownership, competition, jobs and the future of regional news.
The NUJ raised these issues in a submission to the Competition and Markets Authority (CMA) in August, highlighting concerns among its members at ITV over potential job losses, the provision of local news, media plurality and the concentration of ownership.
The union also questioned whether Sky would maintain ITV’s existing public service broadcasting commitments following the takeover. It warned that the deal would leave a single company controlling more than 70% of the UK television advertising market, potentially restricting competition and reducing choice for advertisers and audiences.
The NUJ has called for a fundamental reform of media ownership rules, including a stronger public interest test, as part of its News Recovery Plan for the industry.
Nandy has now echoed several of the union’s concerns, saying there are reasonable grounds to believe the proposed merger could affect the availability of high-quality, varied programming on the on-demand platforms increasingly used by UK audiences.
The Culture Secretary has also indicated that the Government will look to introduce new legislation to broaden the scope of public interest considerations in media mergers.
NUJ general secretary Laura Davison welcomed the prospect of further scrutiny but warned that the future of ITV’s public service commitments and regional journalism must be properly protected.
“Our members at ITV and ITN are pleased that the Secretary of State is considering referring the takeover to the CMA and Ofcom for formal investigation. We note that many of her expressed concerns echo those in our submission to the regulator’s inquiry over the summer,” she said.
Davison acknowledged Nandy’s recognition that ITV has historically gone beyond its public service licence requirements, but stressed that this did not guarantee the same level of provision under new ownership.
“While members appreciate the Secretary of State’s acknowledgment that ITV has historically exceeded its public service licence commitments, this is a long way from guaranteeing that any takeover will provide good quality and locally-produced regional news.
“We remain concerned for the livelihood of ITV workers and the health of regional news, and we urge the government to support a formal regulatory investigation.”
The proposed acquisition would also see Sky take control of UTV, which plays an important role in Northern Ireland’s media landscape.
NUJ assistant general secretary Séamus Dooley said any assessment of the deal must consider its potential impact on media plurality in the region.
“Any examination of this proposed acquisition must include the impact on media plurality in Northern Ireland. UTV has made a unique contribution to journalism across the UK and Ireland and has a proud history despite underinvestment in recent years,” he said.
The NUJ’s intervention adds to the growing scrutiny surrounding the proposed takeover, with the future of regional news, broadcasting diversity and employment among the key issues likely to shape the debate over the deal.