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Virgin ‘suing Sky’
(10-04-07) - Virgin Media is planning to submit a writ to the High Court over BSkyB’s decision to remove channels from its digital TV service, according to The Independent. Court proceedings are likely to begin as early as this week. (visit www.VirginMedia.com / www.sky.com)
BSkyB removed its channels – including Sky One and Sky News – from the Virgin Media platform at midnight on February 28th 2007, after a bitter row over pricing. Virgin Media subsequently lost customers to Sky, but Sky also saw a decline in viewing figures for the channels taken off the Virgin service.
Partners from the Ashurst law firm have been reviewing a letter from Sky that rejects claims of uncompetitive behaviour. The Independent has reported that Virgin Media is likely to pursue legal action after examining Sky’s arguments, and the writ could be submitted this week.
Virgin claims that the dispute arose because Sky demanded twice the usual amount for carrying its channels (which carry hit shows like Lost and 24), whereas Sky claims to have suggested a price hike of 20 per cent.
Mike Darcey, the chief operating officer of Sky, said: "Virgin Media's threat of legal action is another obstacle to the rapid return of Sky's basic channels to Virgin Media's cable customers. Virgin Media is putting its own financial interests ahead of those of its customers."
Chris Eagle, Commercial Manager at DigitalChoices.co.uk, says: “This whole dispute has attracted many consumer complaints, it’s a shame that Virgin and Sky were unable to come to an amicable agreement before the channels were pulled. This dispute is damaging customer perceptions of high value digital TV services at a time when customers need to be encouraged to make the switch to digital TV.”