Sky and C4 sales teams to merge

BSkyB and Channel 4 are to merge their advertising sales teams as part of a strategy to protect themselves from the commercial market leader ITV, according to reports.

Channel 4

It comes as speculation intensified in May that all the broadcasters and ad sales houses had been in continuous discussions about possible tie-ups in anticipation of the relaxation of the Contract Rights Renewal (CRR) mechanism.

The deal between Sky and Channel 4 is thought to have been agreed, though the latter has declined to comment on the matter.

The merger is part of a major cost saving strategy which is likely to lead to job cuts.

Many TV buyers have said that a consolidation of other sales houses is more than likely, but there is concern that it will lead to a stifling of competition to the detriment of clients.

One buyer warns however that the “danger is you will end up with only two sales houses competing against each other”.

A Sky spokesperson says it does not comment on speculation.

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