Branson Vs Murdoch: Round Three
Another chapter in the Branson Vs Murdoch saga has unfolded, with BSkyB challenging Virgin Media to sign a new deal to continue to carry its basic portfolio of channels across the cable network, reflecting “the proposed new terms and considerable value of its basic channels”.
Sky launched adverts on channels such as Sky One last night. Customers of the newly branded Virgin Media (see
Virgin Media Launches Today BSkyB Chief Exec Defends Company’s Swoop On ITV Shares).
A Virgin Media spokeswoman told the Guardian: “We are negotiating in good faith to ensure these channels are available to Virgin Media customers. We have no idea why Sky are saying we are doubting the value of these channels.”
BSkyB was recently in trouble with the Advertising Standards Authority, which banned two adverts after it ruled that the broadcaster’s commercials misleadingly implied that all terrestrial TV signals would cease following digital switchover (see ASA Bans Sky’s “Misleading” Ads).
Sky also recently announced a new set-top box service that aims to lure customers away from free TV towards paid-for TV, and signaling the end of Sky Three, Sky News and Sky Sports News over free-to-air via DTT (see New Sky Service To Lure Consumers From Free TV).
Sky recorded net customer growth of 183,000 in the October-December period of 2006, taking its total figure to 8.4 million customers, although its pre-tax profits in the six months to December 31 were down 4.6% year on year to £395 million. (see Customer Growth For Sky But Profits Down).
BSkyB: 020 7705 3000 www.sky.com Virgin Media: www.virginmedia.com