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BSkyB takes the gloves off in the fight with Virgin Media

By mofgimmers on February 13th, 2007 Comments Off

Bskyb
Richard Branson came out fighting to take on the "unfair dominance" of BSkyB in the world of media. Well, the gloves are well and truly off as Murdoch and clan have raised the stakes in its battle with Virgin Media by taking out ads asking cable customers to take on their suppliers.

Sky launched the adverts on channels such as Sky One last night telling customers of Virgin Media – renamed from NTL last week – that Sky’s basic channels could be withdrawn from the cable system if Virgin Media did not pay a "fair price for them".

Customers were told to call Virgin Media’s customer service line to lobby against any withdrawal.

The move "completely shocked" Virgin Media, which had no idea the adverts were being planned. Fight! Fight! Fight!

An insider at Virgin Media described the move as "bizarre".
Sky and Virgin Media are locked in negotiations over the cost of
carrying each other’s channels. The talks have been feisty and tense and come on top of
Virgin’s complaints to regulators after Sky effectively blocked the
cable company’s takeover bid for ITV.
Sky was able to air the adverts without Virgin Media’s permission as it
inserted them into the feed it gives to the cable firm.

A Sky spokesman defended the move, saying the company wanted to give
Virgin Media customers the chance to lobby against any withdrawal of
its basic channels, which as well as Sky One includes Sky Two and Three,
Sky News and the popular Sky Sports News.
"It is a call to action on behalf of Virgin Media customers," the
spokesman said. "We need to build up some support. We feel these
channels are valuable to Virgin Media customers and we have invested a
lot of money in them. We need to install in viewers the danger of them
potentially being pulled. We feel an obligation to let cable customers know there is a very real
danger these channels could be pulled."

What do you mean? You didn’t know that BSkyB were a loving and caring bunch? Everything they do, they do it for you. Not huge of sums of money. YOU. The spokesman added there was no fixed timescale for how long the
adverts would run. Sky said it was requesting a "fair price" from Virgin Media which
"reflects the proposed new terms and considerable value of its basic
channels".
A Virgin Media spokeswoman said the company did not comment on
negotiations as they were confidential.
But she added: "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.  Negotiations for the channels are still going so we don’t know why
they’re saying this. Unless, of course, their aim is to scare our
customers into taking their service." Tellingly, she then added "We find Sky’s sudden concern for
consumers odd, particularly given their plans to unilaterally withdraw
this very same content from Freeview users." [Mof Gimmers via]

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