Virgin Media Nabs Lost For On-Demand Service

BSkyB rival Virgin Media has signed a deal to offer ratings winner Lost on-demand, which could help to retain Virgin’s cable customers if some of Sky’s channels are pulled from Virgin’s TV package.

Seasons one and two of the award-winning series will be available in August on the company’s TV-on-demand service, which lets viewers choose from a huge library of entertainment, with DVD-like control. The third season will arrive later in the year, after its linear broadcast and DVD release.

The move could go some way to help it to retain customers who might be tempted to leave Virgin Media if Sky pulls five channels on Thursday, as it is expected to (see Branson Vs Murdoch: Round Five). The channels under threat include Sky One, Sky Two, Sky Three, Sky News and Sky Sports News.

Sky wants more for the channel package it offers Virgin Media to reflect the investment it has made in its channels, including its flagship entertainment channel Sky One. Sky is asking for a 30% increase, which Virgin Media is refusing to pay. Talks between the two companies have broken down and Sky has now said that its operating profits could be reduced by £15 million to £20 million if it is unable to resolve a deal with Virgin Media (see Sky Profits Could Be Hit By Virgin Channel Dispute).

Jeremy Darroch, chief financial officer at Sky, said: “We are disappointed that Virgin Media appear to have walked away from negotiations. Sky offered more channels to Virgin Media than ever before. We have invested in developing our channel offering and sought a fair price, which reflects that fact. With three days still to go before the deadline, we hope that Virgin Media will focus on getting a deal done rather than on their PR offensive.”

If the channels are ceased for Virgin, its 3.3 million customers will be cut off mid-season from some of TV’s best-loved shows.

BSkyB: www.sky.com Virgin Media: www.virginmedia.com