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View Full Version : Virgin slams BSkyB in TV dispute



Luna
23-02-2007, 15:38
The head of Virgin Media has accused BSkyB of "bullying" and "arrogance" after talks broke down over showing Sky One and other channels on cable TV.
Virgin Media is to drop the Sky Basics TV package, which includes Sky Travel and Sky Sports News, after Sky raised the fees it charged the cable firm.

Virgin Media was formed from the merger of NTL and Virgin Mobile.

BSkyB said it was "surprised and disappointed" by the comments, and said it stood for "choice and competition".

"Sky has negotiated with NTL/Virgin in good faith and has shown flexibility on price," the broadcaster said in a statement.

"We categorically reject their claims that we have broken off negotiations or that we are seeking to more than double the price of these channels."

BSkyB added that it wanted its basic channels to remain available to Virgin Media subscribers.

Too expensive

Virgin Media chief executive Steve Burch said Sky had been asking "nearly double" the price it had previously charged the cable TV operator to continue showing the Sky channels on its network.

We just weren't going to pay a ridiculous price that would have to be passed on to our customers

Steve Burch, Virgin Media chief executive


Listen to Wake Up To Money

When Mr Burch first refused to pay the asking price, Sky retaliated by showing adverts urging cable TV customers to contact Virgin Media's customer service helpline and demand the cable TV operator show Sky One.

Mr Burch told the Wake Up to Money programme on BBC Radio Five Live: "We frankly believe they never had an intent to reach an agreement with us.

"All their actions - advertising, bullying tactics claiming we didn't care about Sky's basic package - and the price they asked was just so far out of reality, we just believe it was engineered so we wouldn't reach an agreement.

"We sat down and negotiated with them in good faith. Last night we made a final offer.

"They not only rejected it but indicated they were not going to go further with negotiations even though the contract didn't expire until next week. And they indicated to us that they had planned a PR campaign for this weekend to show we wouldn't be carrying Sky Basics any more."

James Healey, senior media analyst at Ernst & Young, said the dispute between the two broadcasters was not surprising.

"Given that Sky has recently substantially reduced the amount it pays for Virgin Media's Flextech channels, Virgin Media was unlikely to accept paying double for the Sky Basic channels," he said.

Other deals

Sky One includes some popular series, such as 24, Lost and new episodes of The Simpsons.

But Virgin Media said it was confident it could compete with Sky if it did not show Sky One.

"We've been going out and signing deals with HBO, Buena Vista and Channel Four for TV shows and video on demand which will more than replace the loss of Sky One," said Mr Burch.

"We just weren't going to pay a ridiculous price that would have to be passed on to our customers."

Last year, Virgin Media's biggest shareholder, Sir Richard Branson, was infuriated by Sky's decision to buy more than £1bn worth of shares in ITV after Virgin Media had declared an interest in buying it.

The Sky shareholding effectively blocked Virgin Media's takeover plans.

Kath What you going to do now?? cause you wont be able to see Jack as of the 1st march???

Chloe O'brien
23-02-2007, 20:22
Kath is fooking hoping mad I pay over £50 an month and I only ask for 1 hour of pleasure a week and they're robbing me of it. there is a news bulentin on at 10.30 about it so we will see what it said on there. I download 24 from the net so I will still see it, but if they do decided to withdraw skyone they can take their package deal and stick it were the sun don't shine. :angry:

Luna
23-02-2007, 21:15
Kath is fooking hoping mad I pay over £50 an month and I only ask for 1 hour of pleasure a week and they're robbing me of it. there is a news bulentin on at 10.30 about it so we will see what it said on there. I download 24 from the net so I will still see it, but if they do decided to withdraw skyone they can take their package deal and stick it were the sun don't shine. :angry:

kath sorry to say that i can confirm tat as of the 1st march there will no longer be sky one on cable.

It was so busy in work today because of it. I can understand why customers are unhappy but you ave to see it from our point of view sky reduced the amount they pay us (virgin) for channels like living tv and bravo and then ask for double the amount for what we pay them for the sky basic channels. They are running scared now the fab mr branson is on board and think they can bully us into paying over the odds.

If we would have agreed to pay what they were asking you £50 a month would have went up by at least £10!!!

Chloe O'brien
23-02-2007, 21:29
I'm just pi$$ed off as its one of the few channels I do watch. I don't watch any soaps and apart from 24 most of the programmes I like are either on E4, Living or ch5

pookie1968uk
25-02-2007, 17:36
it does annoy me though how much power sky seem to have. they have the monopoly on everything, including the football. it shouldnt be allowed.

Luna
25-02-2007, 18:39
the good thing about the sports and movies because sky have such a big stake in it they arent allowed to take that away from us (virgin media) ofcom states they have to provide us with this and not at the hefty price they are asking for the other channels.

I have the feeling that sky will back down though. Their ad campain against us last week backfired and im sure this will too. We have until thursday to come to an argeement so hopefully they will realise how stupid they are being before then