Sky channels Lost

Well, no deal has been done between Virgin cable TV and Sky, so the channels have been switched off. Both sides have been holding out for a better deal right up to the final deadline, but perhaps there is more to it than that. The politics of the situation escalated after Virgin took over ntl. Sky had to buy some of ITV to stop it being bought by Virgin/ntl. Could it be that Sky are feelng challenged by someone with as big a brand as theirs and with their finger in even more pies.

Strange that Sky were able to get the sponsored breakfast slot on Virgin radio early in the year. It’s a million pounds but in the wider scheme of things that doesn’t seem much in comparison to the deal for the TV channels. Are Sky really holding out for money or are they pitching it so high so the squeeze is put on Virgin? are What was it last year, 35million. This years demand is said to be 60 million. Then there’s the advertising spend for Virgin on Sky channels. A few millions more.

So what next? If the National Consumer Council is brought in, perhaps a few heads will be banged together and eventually some sort of deal might be forced to avoid dealing with someone like the Monopolies Commision. But look at the result in the meantime. Virgin customers are angry with Branson for not providing the channels that viewers contracted to, and they are also angry with Sky for switching them off. Sounds like an opportunity for some new media company to come along and take some of these customers away.

Is that my Skype line calling….

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~ by ianm on March 2, 2007.

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