UK Broadcast Sector in 2025: Data‑Driven Pulse Check

The UK broadcasting sector is at a critical inflection point. ITV has recently announced half-year results which offer a useful lens to examine how audience behaviours, advertising revenues and content economics are being reshaped by streaming, global competition and cost inflation.

As audience habits shift and economic pressures intensify, the combination of traditional decline and digital hunting is redefining the industry’s asset value drivers. This overview draws on recent data, including ITV’s H1 2025 results, to illustrate the state of play.

Structural decline in traditional broadcast

Public service broadcasters (PSBs), including ITV, BBC, Channel 4 and Channel 5, remain critical to UK cultural life but face steep audience fragmentation. Linear television advertising, historically the sector’s financial backbone, continues to contract as viewers migrate to digital platforms like YouTube, TikTok and Netflix. Ofcom data shows public service content now accounts for just 9% of online viewing time, compared with 19% for video-sharing platforms, a gap that is widening year on year.

This shift is more than cyclical. Younger demographics are increasingly untethered from scheduled TV, accelerating the need for broadcasters to pivot towards on‑demand and hybrid advertising models. ITV’s own performance reflects this: while total revenues dipped 1% in H1 2025, digital advertising via ITVX grew strongly, with streaming hours up double digits. Management now expects digital ad income to exceed £750 million by 2026 – but this will still only partly replace declining free‑to‑air revenues.

Production headwinds and opportunities

Behind the scenes, the UK production ecosystem is under acute strain. Rising costs, inflationary pressures and reduced commissioning budgets have created what industry figures describe as a “perfect storm.” Independent producers, who account for the majority of UK TV content, face heightened insolvency risk, with estimates suggesting up to 70% are financially vulnerable if conditions fail to improve.

ITV Studios remains a rare bright spot. Its half-year revenues grew modestly and margins are forecast to hold at 13–15%, supported by global content sales to platforms such as Netflix, Disney+ and Apple TV+. For ITV and other broadcasters, international content distribution is increasingly the growth engine offsetting domestic advertising weakness.

This trend also underscores a broader industry shift: the most valuable broadcast assets are no longer just linear channels or transmission infrastructure, but content libraries and rights portfolios with global appeal.

Cost rationalisation and asset realignment

The sector’s financial recalibration is prompting significant asset decisions. ITV has reduced content spend to £1.23 billion and pursued £45 million in non-content savings in 2025. Traditional channels are being restructured, for example, ITVBe’s closure and replacement with quiz-focused digital programming, while production hours for long‑running soaps have been consolidated to cut costs and align output with audience demand.

These changes mirror broader moves across the sector. Consolidation, co‑productions and rights‑sharing arrangements are becoming essential strategies to de‑risk content investment and maximise asset utilisation across linear and streaming windows.

Investor sentiment and market value

Despite falling profits, ITV’s underlying EBITA dropped by a third in H1, markets responded positively to its results, buoyed by stronger-than-expected cash flow and continued dividend stability. With ITV’s forward price-to-earnings multiple around 9x, takeover speculation persists, centred on the Studios business and its global distribution capabilities.

For asset managers and investors, the key value drivers are shifting toward digital scale, data-driven advertising technology and intellectual property ownership. The resilience of these intangible assets will increasingly determine the health of broadcasters’ balance sheets.

Outlook: Navigating the next phase

The UK broadcast industry stands at a pivotal moment. Digital streaming growth is real but uneven; cost pressures on production remain severe; and the public service mission is under threat from global competition and shifting viewer habits. ITV’s results hint at both the challenges; declining linear ad revenue, rising costs, and the opportunities; global content sales, growing streaming reach, that define the sector’s path forward.

For stakeholders across the value chain, from content creators to investors, asset strategies must now reflect this new reality: prioritising scalable digital platforms, monetisable content rights, and flexible production models capable of withstanding cyclical and structural pressures alike.

About Hickman Shearer

If you and your business is impacted by the challenges of the UK broadcast sector, our industry experts can help you navigate these changes to unlock potential in your assets. At Hickman Shearer, we specialise in delivering exceptional RICS and ASA certified capital asset valuation, management, and sales services. Our expertise span a wide range of global industries, ensuring that we provide tailored and insightful commercial valuations and equipment valuation services to meet your unique needs.

With a strong track record of delivering robust and independent advice, we are committed to supporting businesses in achieving their strategic objectives. Find out more here >> About Us

Sign up to our Industry Insights Newsletter to stay up to date with the latest industry updates >> Subscribe

Follow our developments on Linkedin: Follow Us