BSkyB set to pull channels from Virgin Media
BSkyB today looked set to pull its major channels from the Virgin Media cable network at the end of this month after talks collapsed between the two rivals, leaving relations between the groups at an all-time low.
The broadcasting giants failed to agree on a rate for the channels, which include Sky One, Two, Three, Sky News and Sky Sports News, although the talks do not affect the availability of Sky’s premium movies and sports channels.
Virgin Media, rebranded from NTL earlier this month, claimed Sky tried to deliberately sabotage the negotiations by doubling the price of its channels.
Chief executive Steve Burch today said Sky’s behaviour was “heavy handed and anti-competitive”, adding “consumer choice has been reduced as a result”.
The group, formed by NTL’s takeover last year of Virgin Mobile and Telewest, said it hoped to continue negotiations, despite claiming Sky broadcast promotions last week suggesting the channels were about to disappear from the Virgin network.
The breakdown follows news earlier this month that Sky planned to withdraw channels from free-to-air digital terrestrial television platforms, such as Freeview – a move which is being closely looked at by the industry watchdog Ofcom.
Sky is set to broadcast the channels – Sky Three, Sky News and Sky Sports News - on a terrestrial pay-TV service, set for launch in the summer.
Ofcom said it was looking into whether or not Sky’s plans would “unacceptably diminish the appeal” of Freeview.
