ITV plans £30m in savings as advertising downturn deepens
The broadcaster expects advertising revenue to fall during the Christmas quarter and plans to delay some commissions as its proposed sale to Sky faces regulatory scrutiny.
By Hassan Ellis ·
ITV plans to reduce spending by £30m in 2026 as weaker advertising demand puts pressure on its television and streaming business. The broadcaster expects advertising revenue in the division to decline by between 5% and 10% in the final quarter, despite the Christmas period usually being a busy season for advertisers. Across the full year, advertising sales are forecast to fall by between 2% and 3%.
The company described the savings as temporary, with £25m coming from content spending and another £5m from other parts of the business. The content reductions are understood to fall mainly on smaller commissions from external producers, with projects being postponed until 2027. ITV indicated that the proposed savings would not include staff reductions.
Chief executive Carolyn McCall attributed the weaker advertising market to broader economic uncertainty and the growth of digital advertising on global streaming services. She also pointed to rules introduced this year that prevent television advertising for less healthy food before 9pm. ITV has faced competition in recent years from well-funded businesses including Netflix and YouTube, which have taken audiences and commercial revenue from traditional media.
ITV shares fell as much as 5% in early trading on Wednesday. The broadcaster, which is part of London's FTSE 250 index, has lost approximately a fifth of its market value since the beginning of 2026. The pressure extends across the broadcasting industry: the BBC intends to eliminate up to 2,000 jobs, while Channel 4 is also planning layoffs.
McCall has presented the agreed £1.6bn sale of ITV's television and streaming operations to Sky as a means of securing the company's survival. The transaction would leave ITV owning its studios business, which produces programmes for ITV as well as other broadcasters and streaming platforms.
The proposed sale came under additional scrutiny last week when culture secretary Lisa Nandy issued a public interest intervention notice. That step prompted investigations by Ofcom, the media regulator, and the Competition and Markets Authority. Nandy raised concerns that the combined broadcasters would represent about 86% of viewing of linear news and current affairs programmes in Britain.
Nandy also questioned the potential for US political influence over editorial independence, given that Sky is owned by US broadcaster Comcast. ITV said on Wednesday that the transaction remained on course and was still expected to be completed in the second half of 2027.
In its update to investors, ITV reported a 1% decline in studios revenue over the first nine months of 2026. The production business nevertheless made five of Britain's 10 most-watched dramas in the third quarter, including Netflix's The Gentlemen and ITV's The Blame.
