‘Scale is survival’: UK broadcasters race to merge as streaming giants squeeze revenues

British broadcasters are turning to mergers as television revenues come under pressure from streaming services, YouTube and online ads, according to Ofcom. The media regulator’s annual Media Nations report found commercial broadcaster revenues fell from £4.98bn to £4.

83bn in 2025, despite the wider TV and online video market growing seven per cent to £18.4bn. Growth came from online video rather than traditional broadcasting as ad spending continued to shift online.

The findings come weeks after Sky agreed a £1.6bn takeover of ITV’s media and entertainment business, a deal that would create Britain’s largest commercial broadcaster. Overseas, Paramount is pursuing a $111bn (£83.

41bn) acquisition of Warner Bros. Discovery, while Banijay and All3media have completed a merger to create one of the world’s largest TV production companies. Ofcom said audiences are now as likely to turn to Netflix as the BBC when deciding what to watch.

Around 26 per cent of viewers said Netflix was their first choice, compared with 25 per cent for the BBC and 15 per cent for ITV. Meanwhile, traditional broadcasters are retaining audiences through their own streaming platforms. Viewing of BBC iPlayer, ITVX, Channel 4 Streaming and 5 increased nine per cent over the year, making broadcaster-owned services the fastest-growing television category.

Even so, that growth was not enough to offset the continued decline in linear television viewing. Overall broadcaster viewing fell eight per cent, while subscription streaming remained in around seven in ten UK households. Youtube is also taking a growing share of television viewing.

Average viewing on TV sets has more than doubled since 2022 to 19 minutes a day, while viewing across all devices has risen to 41 minutes a day. Broadcasters have responded by expanding the amount of full-length content they distribute on the platform. Paolo Pescatore, founder of PP Foresight, said broadcasters were responding to long-term changes in the market.

“The big