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The cost of building out networks has left the lossmaking “altnets” saddled with over £9bn in net debt, according to calculations by Enders Analysis. Some providers, such as London’s G.Network, have fallen into administration, while lenders to others have been forced to write down the value of their debts.

“The crucial difference between these deals is that TalkTalk is a proven failed-firm situation, with it having been publicly for sale for at least the past four years but with no credible buyer,” said Karen Egan, head of telecoms at Enders Analysis.

Enders Analysis has identified Virgin Media O2 and CityFibre as leading consolidators, as several heavily indebted fibre networks struggle to win sufficient business to justify high investment levels.

“The overarching problem is the amount of long-form content people watch is going down,” Tom Harrington, head of television at Enders Analysis, said. “If the whole thing is shrinking … then that’s a challenge for every broadcaster and streamer.”

Skydance has a net debt of roughly $80bn, or around seven times its profits. That is almost three times higher than the 2.5x level normally associated with the industry, according to Enders Analysis.

Karen Egan, at telecoms research group Enders Analysis, said: “Equity shareholders will be asking for some pain on the debt side of the equation in return for the £900m of equity injection, even if that pain isn’t in the form of an official write-down of the debt stack.”

The European contest has achieved success online by expanding the cultural relevance of existing entertainment intellectual property. It remains to be seen whether Eurovision Asia can “drive comparable engagement for a sister brand that does not carry the same heritage and audience buy-in,” says Ben Woods, head of creator economy at Enders Analysis.

Claire Enders, founder and chief executive of Enders Analysis, said the idea of a tie-up between BBC Studios and Channel 4 was "a perennial that flowered every so often".
 

Although BBC Studios could end up as the ultimate home for Channel 4, Priya Dogra, who became Channel 4 CEO in March, had already taken steps to improve its financial footing, such as winning Skydance-owned Channel 5's advertising sales business, Enders said.

"We're very far from a situation where Channel 4 is a failing firm," Enders added.