Virgin Media Threatens Legal Action Over Sky Channel Dispute
The latest episode in the ongoing saga between Virgin Media and Sky has taken place today, with Virgin Media saying that it will take the satellite broadcaster to court if the carriage dispute is not resolved.
Virgin Media customers are unable to receive Sky’s basic channels after talks between the two companies broke down over the price Sky would charge the cable company for the channels, which include Sky One and Sky Sports News (see Sky Anytime? Not For Virgin Media Cable Homes).
In a statement released today, Virgin Media said that it: “has formally advised Sky that it will pursue action in the high court if their carriage disputes are not resolved within 30 days.
“This comes on the heels of an offer by Virgin Media to have the matter resolved through legally binding arbitration by an independent expert.
“The remedies sought will include supply of Sky’s basic channels at a reasonable commercial rate, as well as fair payment for Sky’s carriage of Virgin Media TV channels, such as Living and Bravo. Virgin Media will also seek damages if the dispute is not resolved.”
Steve Burch, Virgin Media CEO, said: “We are not interested in prolonging this dispute any longer than necessary but we will not allow Virgin Media or our customers to be the victim of Sky’s market power. In the interest of the consumer, we want these issues resolved quickly.”
Both company bosses added in their two cents over the weekend, with interviews from both James Murdoch and Richard Branson running in the national press.
Murdoch, the chief executive of BSkyB, has branded Virgin Media a company seeking “victimhood” in order to achieve its ends.
He also claims he was “astonished” by the Government’s recent decision to ask to launch a public interest probe through Ofcom into his acquisition of a stake in ITV.
The BSkyB chief executive warned that Britain is in danger of allowing regulations to be “manipulated”.
Virgin Media’s refusal to accept the price being demanded by BSkyB to supply Sky channels to Virgin’s cable service reflects a company unwilling to invest, Murdoch claims. Instead, Murdoch said Virgin was seeking victim status.
Commenting on the Ofcom investigation, recently ordered by trade secretary Alistair Darling (see
Darling Demands Ofcom Investigate Sky’s Stake In ITV
Darling Demands Ofcom Investigate Sky’s Stake In ITV
Darling Demands Ofcom Investigate Sky’s Stake In ITV
Darling Demands Ofcom Investigate Sky’s Stake In ITV
Darling Demands Ofcom Investigate Sky’s Stake In ITV
Darling Demands Ofcom Investigate Sky’s Stake In ITV Virgin Promises To Cancel Subs For Unhappy Customers).
Virgin Media: www.virginmedia.com Sky: 08702 40 40 40 www.sky.com