sky! Virgin Media 'to lose Sky' channels BSkyB yesterday looked set to pull its major channels from the Virgin Media cable network at the end of this month after talks collapsed between the two rivals, leaving relations between the groups at an all-time low. The broadcasting giants failed to agree on a rate for the channels, which include Sky One, Two, Three, Sky News and Sky Sports News, although the talks do not affect the availability of Sky's premium movies and sports channels. Virgin Media, rebranded from NTL earlier this month, claimed Sky tried to sabotage the negotiations by doubling the price of its channels. Chief executive Steve Burch said Sky's behaviour was "heavy handed and anti-competitive". The group, formed by NTL's takeover last year of Virgin Mobile and Telewest, said it hoped to continue negotiations, despite claiming Sky broadcast promotions last week suggesting the channels were about to disappear from the Virgin network. The breakdown follows news earlier this month that Sky planned to withdraw channels from free-to-air digital terrestrial television platforms, such as Freeview – a move which is being closely looked at by the industry watchdog Ofcom. Sky is set to broadcast the channels – Sky Three, Sky News and Sky Sports News – on a terrestrial pay-TV service, set for launch in the summer. Ofcom said it was looking into whether or not Sky's plans would "unacceptably diminish the appeal" of Freeview. BSkyB has also been referred to the media regulator by the Advertising Standards Authority (ASA) over the promotions aired last week suggesting its five channels could be withdrawn from Virgin Media. The ASA received 140 complaints from cable customers about the ads. If Virgin Media cannot agree on a deal for the five-channel Sky package, viewers could lose out on hit shows such as 24 and Lost. BSkyB claims the talks have not yet collapsed.
I think it's a very well calculated move, they stand to make a much higher realistic profit from people switching than they do through keeping the arrangement going...
