NUJ supports formal investigation into Sky-ITV takeover
The NUJ has welcomed the announcement by Lisa Nandy, UK culture secretary, that she is “minded to intervene” in Sky’s proposed £1.6 billion takeover of ITV.
Sky, which is owned by US giant Comcast, agreed a £1.6 billion deal in July to acquire ITV’s Media & Entertainment division and create the UK’s biggest commercial broadcaster.
In August the union made a submission to the Competition and Markets Authority (CMA), highlighting the concerns of members at ITV over jobs, local news provision, media plurality and concentration of ownership.
The union noted that the merger raises questions over whether Sky will maintain ITV’s existing public service broadcast offering. The submission also highlighted that the takeover would lead to a single company controlling over 70% of the UK TV advertising market, warning that “such a prominent concentration of market power risks reducing competition and limiting choice for advertisers and audiences.” To safeguard media plurality, the union has called for fundamental reform of media ownership rules with a strengthened public interest test as a core component of its News Recovery Plan.
Similar concerns have now been echoed by the Culture Secretary. Nandy said: “Having considered the anticipated merger, I am of the view that there are reasonable grounds to believe that it might affect availability of a wide range of high-quality and varied programming on the on-demand platforms that are now widely used by UK audiences.” The Secretary of State also said that she would look to bring forward new legislation to extend public interest considerations.
Laura Davison, NUJ general secretary, said:
“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. 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 merger would also result in Sky acquiring UTV, an integral part of the media landscape in Northern Ireland.
Séamus Dooley, NUJ assistant general secretary, said:
“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."