ITV is cutting £25 million (€30 million) from its content budget after warning of a steeper fall in advertising this year, as brands curtail spending amid economic uncertainty and new government regulations.
The UK broadcaster said on Wednesday that total advertising revenue for its television and streaming business – which ITV agreed to sell to Sky this year – would be between 5 and 10 per cent lower in the fourth quarter, year on year.
Analyst forecasts had ranged from flat revenues to a worst-case scenario of a 5 per cent drop.
ITV said that over the full year, the fall would be between 2 and 3 per cent. As a result, the broadcaster said it would make £30 million of additional temporary savings, including £25 million in content.
Those moves are likely to mean fewer new shows for the period and more repeats of older programmes. The total content budget for 2026 is expected to be about £1.2 billion. ITV shares fell 5 per cent in early morning trading.
ITV has been hit by a number of issues this year in its advertising business as brands have become more cautious about spending in response to consumers reining in their budgets. More advertising spending is also moving to digital and streaming rival platforms such as Netflix and YouTube.
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ITV also blamed new regulations that have imposed a 9pm watershed on TV advertising for less healthy food.
ITV agreed to sell its TV channels, streaming service and advertising operations to Sky in July, in a deal worth up to £1.6 billion (€1.9 billion). Last week, culture secretary Lisa Nandy intervened in the deal, issuing a public intervention notice that triggers a probe by media regulator Ofcom and the Competition and Markets Authority. ITV said it still expected the transaction to complete in the second half of next year.
Regulators are expected to focus on the combined group’s share of advertising spend when reviewing the deal. Sky and ITV are expected to argue that the combination would create a new British streaming champion that could compete globally, albeit with US ownership.
Carolyn McCall, ITV chief executive, said on Wednesday that “while the outlook for advertising remains muted, we are firmly focused on self-help and mitigating actions, while continuing to execute our strategic priorities to drive performance across both businesses”. – Copyright The Financial Times Limited 2026
