Key facts
- UK commercial broadcaster revenues declined from £4.98bn to £4.83bn in 2025.
- Sky has agreed to a £1.6bn takeover of ITV’s media and entertainment business.
- Netflix is now the first choice for 26% of viewers, surpassing the BBC (25%).
- TV advertising revenue decreased by 1% to £5.2bn, while online advertising rose 9% to £39.3bn.
- Broadcaster-owned streaming platforms saw a 9% increase in viewing.
British broadcasters are increasingly turning to mergers and acquisitions to counter declining revenues, a trend driven by the growing dominance of streaming services, YouTube, and online advertising, according to Ofcom's annual Media Nations report. Commercial broadcaster revenues fell to £4.83bn in 2025, despite the overall TV and online video market expanding by 7% to £18.4bn, with growth primarily fueled by online video.
The report highlights a significant shift in viewer habits, with Netflix now being the first choice for 26% of viewers, closely followed by the BBC at 25%, and ITV at 15%. While broadcaster-owned streaming platforms like BBC iPlayer and ITVX saw a 9% increase in viewership, this was insufficient to offset an 8% decline in linear television viewing. Subscription streaming remains prevalent in 70% of UK households.
YouTube's share of television viewing has also doubled since 2022, with average daily viewing on TV sets reaching 19 minutes and 41 minutes across all devices. In response, broadcasters are expanding their full-length content distribution on the platform.
Industry experts note that the competitive landscape has fundamentally changed, with broadcasters now competing against global technology platforms rather than just each other. Paolo Pescatore, founder of PP Foresight, stated that greater scale is essential for broadcasters to spread costs, invest in technology and content, and improve their standing with advertisers. He also emphasized the need for larger streaming businesses to meet audience demand for on-demand content.
This consolidation trend is evident globally, with Sky's £1.6bn agreement to take over ITV’s media and entertainment business creating Britain's largest commercial broadcaster. Other major deals include Paramount's pursuit of Warner Bros. Discovery for $111bn and the merger of Banijay and All3media to form a global TV production giant.
The shift in advertising revenue is also a critical factor. TV advertising revenue fell 1% to £5.2bn in 2025, while online advertising surged 9% to £39.3bn, with social media advertising growing by 21% to £11.5bn. This dynamic is central to the Competition and Markets Authority's review of Sky's proposed ITV takeover, where the combined entity is expected to argue for a significant share of the UK ad market.