How are broadcasters currently coping?

Currently UK broadcasters (BBC, ITV, C4, C5) are quite frankly struggling in the current climate. A combination of cheap programming, the economic downturn resulting in poor advertising revenue and the challenge from satellite and the internet have made survival increasingly difficult. 

ITV in particular seems to be in grave difficulties:

"We are scrapping for our lives at the moment. We need every source of possible revenue – I don't care how small it is, we need it."

ITV reported a loss of £2.7bn for 2008

ITV's advertising revenue has fallen with the growth of niche commercial channels and the internet.
The company estimates its net advertising revenue for the first quarter of 2009 will be down by about 17% on the same period last year.

Channel 4 has also been deemed to have been struggling of late too, and there was talk of a merger with the BBC Worldwide , then Channel Five, and now very recently, BT has stepped in with the possibility of a merger of C4 with BT Vision. To me, this would make great sense as C4 would benefit from the other's technological prowess while BT Vision could capitalise upon some of the excellent content and branding the broadcaster has.

Channel 4 could benefit from BT's technology and the fact it has a pipe in every home, while BT's subscription pay-TV service would benefit from Channel 4's arguably more fashionable brand.

It comes as the Government is seeking funding solutions for Channel 4, which expects to have a funding shortfall of £150m a year from 2012.

http://news.bbc.co.uk/1/hi/business/7922770.stm

http://www.independent.co.uk/news/media/opinion/stephen-glover/stephen-glover-how-did-itv-possibly-become-one-sixth-of-the-size-of-bskyb-1622729.html

http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/4886746/BT-signals-Channel-4-merger-ambition.html