Virgin Media is planning to offer its subscribers discounts of up to £9.75 in compensation for the loss of Sky-branded channels from its basic packages following the breakdown of carriage talks. The cable operator confirmed today (February 23) that Sky would be withdrawing Sky One, Sky Two, Sky Three, Sky News and Sky Sports News from its basic packages in the next few days.
In a statement Virgin accuses Sky of deliberately engineering the withdrawal of the channels to force customers to switch to its own services. It follows weeks of negotiations over carriage fees for the channels that have failed to draw a successful conclusion. It is understood that Sky has doubled the price it charges for the channels. With increasing amounts of original production, some more successful than others, and key US series Sky One increasingly perceives itself as a premium option “Sky continues to demand a price that bears no relation to the channels’ popularity and is radically out of line with the way it values competitors’ channels on its own network.” Premium channels Sky Movies and Sky Sports are covered by separate negotiations.
The monthly discounts are expected to last for a period of six months, though Virgin executives are hoping that any withdrawal of the Sky channels will be resolved within a few days, as was the case in last year’s dispute with Disney Channel. A spokeswoman for Virgin Media emphasised that any price reductions would be made according to individual customers circumstances and there would be no blanket discounts.
Virgin Media has also issued a cease and desist order against Sky over the satellite broadcaster’s continued references to NTL-Virgin Media. (JC)
About Julian Clover
"In an industry that experiences rapid change and often a confusing subsequent
constant supply of news, it is often refreshing to read an insightful perspective. Broadband
TV News and its editorial team regularly provide a context and
helpful analysis to breaking news.”
Broadband TV News is the must-read publication for those working in the Business of the Multiscreen Television. We deliver news, insight and data direct to your desktop. As well as our constantly updated website you can sign-up to our Daily and Weekly email bulletins. 
Connected TV Forecasts NEW REPORT. The number of TV sets connected to the Internet will reach 551 million by 2016 for the 40 countries covered in this report from Digital TV Research, up from 124 million at end-2010. The report states that this translates to 20% of global TV sets by 2016, up from only 6% at end-2010. Published in November 2011, this 83-page PDF report is the most geographically comprehensive to ever be published.
I have been an NTL internet customer for many years, since the launch and also a Sky subscriber since about 1995. I have no sympathy for NTL when I look at the fact that they secretly started traffic shaping peoples internet and telling people that they can only download so much per month then have the cheek to still sell the internet as Unlimited. Look at the new VM adverts it says UNLIMITED, yet more lies to the customers, what goes around comes around!. They don’t like it when the shoe is on the other foot.
I work for “NTL” as a network engineer, there is no traffic shaping going on. I don’t think that term means what you think that means! Traffic shaping itself also would have nothing to do with a download quota. Completely different things mate. Neither are in effect because it would be bloody impossible to do it for one user out of a network!
There are no limits on the amount you download, it simply doesn’t work that way with our system. There is “fair usage” but this is 10 Gb a day. Put bluntly if you haven’t got a letter through about fair usage you’re not affected.
I suggest you give them a ring and ask what the deal is on your UBR if the service isn’t top notch. With millions of accounts we can’t really enforce “Traffic shaping” nor limit an individual’s connection since everyone in your area is off the same UBR.
Just letting you know like.
Losing Sky one is to me like not having BBC1 or ITV1. As far as I am concerned I would pay a premium to keep this channel, but has any one from Virgin asked me. NO THEY HAVE NOT. It’s a shame as Virgin offer a great value service with their TV Drive package. I have all the channels + Broadband and my home phone with them. Sadlly I am left with no alternative but to jump ship and will be doing so as soon as I can, but not from choice. Jumping ship will leave a bad taste in my mouth as I believe that Sky will dominate the market soon and will be targeting the Digibox next and we will end up with a poor high cost service in a few years.