[opendtv] Virgin Media attacks Sky over basic channels
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Fri, 23 Feb 2007 17:30:01 -0500
More example of sameness between US and UK TV markets.
Point being, I don't see how these negotiations have anything to do with
"govt gerrymandering," traditionally given as the excuse why it happens
here in the US. "Govt gerrymandering" might describe accurately the
must-carry woes cable companies have to endure, but not the retrans
consent negotiation squabbles that consumers probably care a lot more
about.
The same happens in the UK. The common denominator can only be "standard
business negotiations."
Cable can drop Sky, and consumers can then either jump ship, yell loudly
at Virgin Media and accept higher fees, or relax, proving to Virgin
Media that the cable company made the right choice to drop Sky programs.
Bert
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http://www.dtg.org.uk/news/news.php?class=countries&subclass=0&id=2263
Virgin Media attacks Sky over basic channels
Virgin Media has accused BSkyB of "heavy-handed and anti-competitive"
behaviour after Sky went ahead with its threat to withdraw its basic
channels from Virgin's cable platform. Virgin and Sky have been
negotiating for weeks over a carriage agreement for the channels, which
include Sky One, Two and Three, and Sky News. At one stage Sky used ad
breaks in its own channels to urge cable viewers to lobby Virgin over
the issue.
Virgin Media CEO Steve Burch said he anticipated the withdrawal of Sky's
basic channels at the end of February. Burch told BBC Radio Four's Today
programme that Sky's basic channels had lost an average of 7% of their
cable viewing every year over the past four years, yet Sky had demanded
a doubling in the carriage fee.
In a statement, Burch said he would still continue to seek an agreement
with Sky that made commercial sense, but if Sky did withdraw its
channels, Virgin Media would divert any money saved into new channels
and programming. This week Virgin Media launched an on-demand channel,
Virgin Central, and announced a major content agreement with Warner Bros
for its wider on-demand proposition.
"Sky's behavior is a heavy-handed and anti-competitive response to [our]
challenge and consumer choice has been reduced as a result. I'm pleased,
however, that at a time when they're taking content away, Virgin Media
is giving people more," said Burch.
Lovelace Consulting 23.02.2007
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