British broadcaster ITV is cutting roughly $40 million in spending, including $33 million in content spending, after warning that fourth-quarter ad revenue could fall as much as 10% ahead of its planned sale to Comcast-owned Sky.
The sharper-than-expected downturn underscores the pressure on traditional television businesses as advertising spending shifts toward streaming platforms. It also comes as Comcast prepares to expand Sky’s British TV operations through a $2.1 billion acquisition, while ITV positions its production division as a standalone supplier to U.S. networks and streamers.
In its third-quarter trading update Wednesday, ITV forecast a 5% to 10% decline in fourth-quarter advertising revenue, compared with a 2% to 3% decline for the full year. Advertising revenue fell 8% in the third quarter.
ITV shares fell nearly 5% in early London trading Wednesday following the advertising warning.
ITV said it identified £30 million in temporary fourth-quarter savings, including £25 million in content spending and £5 million in other discretionary costs. Its total programming budget for 2026 is now expected to be approximately £1.2 billion ($1.6 billion).
The content reductions are expected to primarily affect smaller productions commissioned from outside companies, potentially delaying some projects until 2027, according to The Guardian. ITV does not expect the savings to result in staff cuts.
The pullback comes despite growth at ITVX, the broadcaster’s streaming platform, where viewing hours increased 29% during the first nine months of 2026. Digital revenue rose 7% over the same period.
CEO Carolyn McCall attributed the weaker advertising market to economic uncertainty, growing competition from global streaming platforms and new British restrictions on advertising less healthy food products.
“We are taking decisive action, aligning our investment with advertiser demand,” McCall said in the company’s trading update.
The proposed £1.6 billion sale includes ITV’s broadcast channels, streaming platform and advertising operations. The transaction faces regulatory scrutiny after British Culture Secretary Lisa Nandy ordered an investigation on Nov. 4 into its potential effects on media competition, editorial independence and the diversity of news coverage.
Regulators are expected to report their findings by Jan. 27, 2027. ITV said the deal remains on track to close in the second half of 2027.
ITV Studios revenue declined 1% during the first nine months of the year, but the company expects full-year growth as major productions and licensing deals are completed in the fourth quarter.
Following the Sky deal, ITV would retain ITV Studios, its international production and distribution business, which supplies programming to major U.S. networks and streamers. Its upcoming deliveries include “Love Island US: Beyond the Villa” for Peacock, “Hell’s Kitchen” for Fox and “SuburraMaxima” for Netflix.
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