[2/26/07] Relations between BSkyB and Virgin Media (formerly ntl Telewest) seem to have hit an all time low, as Virgin Media issued a statement Feb. 23 saying that by the end of February it was unlikely to carry Sky’s basic channels, Sky One, Sky Two, Sky Three, Sky News and Sky Sports News across its network.
According to Virgin Media, even though the audience share of these channels have been dropping, BSkyB is demanding more than double the existing contract to carry the channels. “Throughout its history, Virgin has challenged the attempts of dominant corporations to manipulate markets, stifle competition and dictate consumer choice,” Steve Burch, CEO of Virgin Media, said in a statement. “It has done so simply by giving consumers a better deal and Virgin Media is going to do the same. Sky’s behavior is a heavy handed and anti-competitive response to that challenge and consumer choice has been reduced as a result.”
The key question is whether the loss of these channels will persuade Virgin’s customers to switch to BSkyB.