Sky and C4 sales teams to merge
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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.
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.
